Ways to Decrease Health Insurance Costs

Health insurance costs can be overwhelming for many individuals and business owners. Often health insurance premiums represent a significant portion of an overall financial budget. With health costs on the rise, many people are looking for ways to reduce their health insurance costs. If you are one of the many people looking to lower expenses, you should know there are steps you can take to keep your insurance costs under control without sacrificing coverage.

Enroll in a Group Plan

• If you do not currently belong to a group health insurance plan, you may be able to reduce your overall health care costs by trading in an individual plan for a group plan. Group health plans such as those provided through an employer or through a professional organization like the National Association of the Self Employed often pass group savings onto their members. By enrolling a large group to a plan, the insurance company is guaranteed a higher number of premium payments that helps offset the cost of paying claims and providing medical services. As a result, many insurance companies are willing to offer discounts to entice more people to enroll in group plans, and you can take advantage of those group savings.

Reduce Coverage

• Most health insurance companies offer several different tiers of health insurance coverage. The health plans with the best programs and most flexible coverage options are typically more expensive than health plans that limit the number of doctor visits or restrict access to certain medical providers. Review your health insurance plan to verify you have the right level of coverage. If you are paying for a more expensive plan that provides coverage you do not currently need, consider reducing your coverage to a more basic plan. A less expensive health plan may still meet your insurance needs while costing you a lot less in premiums.

Increase Deductibles

• Most health insurance companies design health insurance plans with set deductibles and co-payment amounts for doctor's visits or emergency room services. Each member is responsible for paying the total yearly deductible before health insurance kicks in to cover the remaining eligible medical expenses. Health insurance plans with a low deductible or copay often have a higher premium cost to make up the difference, while plans with a higher deductible often have lower premium costs. In many cases, the deductible can be adjusted according to your preference. If you have financial reserves set aside for medical expenses, and you do not anticipate a need for extensive medical care, increase your deductible amount to lower your premium costs.