Ways to Reduce Health Insurance Costs

If you need to tighten the belt on your family's budget, you might want to have a look at your health insurance premiums. While you don't want to go without appropriate coverage, you may have alternatives that can cost you less. In some cases, a lower premium is possible by simply making some lifestyle changes. You may also find that you are paying for more insurance than you actually need.

Choose a Plan with Less Coverage

• If you and your family are reasonably healthy, look into plans that offer less coverage. For example, some plans offer higher deductibles, don't cover regular office visits, or exclude maternity care. If you don't need certain services, why pay for them? Some plans with high deductibles are paired with health savings accounts (HSAs), which let you save money toward healthcare expenses, only using what you need. The money that goes into these accounts can earn interest, and after you turn 65, you can withdraw money from the account for any purpose without having to pay a penalty.

Improve Wellness

• If you are covered by an employee group health plan, ask about wellness programs. By participating in smoking cessation classes and weight-loss programs, exercising regularly and practicing good health habits, you may be able to reduce your health care premiums, receive rebates on your health costs, or earn perks such as airline miles or gift cards. If you have individual insurance, you may be able to reduce your premium by quitting smoking or losing weight. Ask your insurance company if it offers wellness support programs, such as gym membership discounts, to help you achieve these goals.

Ask About the Pre-Existing Condition Insurance Plan

• Under the federal Affordable Care Act of 2010, people with health problems have more access to health care. As of September 23, 2010, insurers cannot refuse to cover children under the age of 19 due to pre-existing conditions. This coverage will extend to everyone by 2014. Until then, other provisions are in place to help people who might otherwise be denied insurance coverage.

  At this time, those who have gone without health insurance for six months are eligible for the Pre-Existing Condition Insurance Plan (PCIP). Some states manage their own plans, while the federal government manages the program in the rest of the country. While these programs typically aren't cheap, they can offer you the comprehensive coverage that you need. For example, if you or someone in your family has a mental health issue, and the only insurance plan that you are offered excludes mental health coverage, it may be less expensive to join a PCIP that covers mental health care.