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Hints for Health Insurance

Health insurance is a vital purchase, one that every individual must make. Going without health insurance can be both dangerous and expensive, so it is important to make sure you are covered. If you have access to health care through your employer, you should review your options carefully and choose the one that best meets your needs. If your employer does not offer coverage, you need to look for an affordable plan on the individual market instead.

  1. Your Employer's Plan

    • If your employer offers health insurance coverage, chances are that coverage will be much less expensive than what you could find on your own. That is because large employers are able to negotiate group rates with health insurance companies, resulting in lower prices for everyone in the plan. With an individual health care plan, rates are determined based on your age and medical history. In addition, most employers pay at least part of the cost of a health care plan, lowering your costs even further.

    Network vs. Non-Network

    • When you schedule your doctor visits and medical procedures, it is imperative to check the network status of the provider you plan to use. Each health insurance company negotiates rates with a preferred network of doctors, specialists, clinics and hospitals, and staying within that network can save you a lot of money. If you go outside the preferred provider network, your claims will be reimbursed at a much lower percentage than if you had stayed within the provider network. In some cases, your claims might not be covered at all if you go outside the network. Always check the provider network before changing plans and make sure the doctors, hospitals and other providers you use are part of that plan's network.

    Co-Payment Percentages

    • Even though you have health insurance coverage, chances are you will still face a number of expenses. Most plans require you to meet a deductible, which is a set dollar amount you must spend before the insurance begins to pay any benefits. You might also have a co-payment percentage, meaning that only part of each claim is paid by the insurance. This co-payment can be significant, especially for a major operation or hospital stay. Fortunately, health insurance plans also have an out-of-pocket maximum, after which claims are covered at 100 percent.

    High-Deductible Health Plan

    • If you are looking for a way to save money on your health insurance premiums, a high-deductible health plan might be the right choice. These plans are not right for everyone, and they tend to work best for those who are relatively healthy. If you are in reasonably good health and have fairly predictable health care costs, it might make sense to couple a high-deductible health plan with a health savings account, or HSA. With an HSA, you can put money aside on a pre-tax basis and use those funds to pay for your health care expenses. Many employers are now offering high-deductible health plans to their employees, often with an HSA that is partially funded by the company.

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