Medical Insurance is not like auto or home insurance where if you have no claims, install a burglar alarm in your home or a LoJack on your car you may get a premium discount.
However, you might be able to lower your rates and your costs by paying attention to the following medical insurance factors:
Deductibles- As with most types of insurance deductibles apply in medical insurance. In fact, they can range from $250 to several thousand dollars. The higher the deductible the less your premium will be.
Raising your deductible is probably the one action you can take that will reduce your medical insurance rates the most. Of course, make sure you can afford that out of pocket expense.
Copayments and Coinsurance- Copayments are the amount you pay for routine services. For example, you might pay $20 as a copayment for a doctor’s visit.
Coinsurance is the amount you pay after the deductible is satisfied. For example, your insurer might pay 80 percent of the next $10,000 in charges after the deductible is met. That means you’ll have to pay the other 20 percent.
You might be able to set these amounts when you buy the policy. Again, the higher the payments you make, the lower the premium will be.
Prescription Drug Costs- If you buy prescriptions regularly, you might be able to save money by ordering them online or through the mail.
If you belong to a prescription drug plan you might be able to get a three month supply for the price of a one month supply.
You can also ask your doctor or pharmacist to recommend a less expensive generic brand whenever possible.
Medical Bills- It may seem like (probably because it is) a tedious process, but make sure each medical bill accurately reflects the following:
If you think you’ve found a mistake, be persistent about getting it corrected. Follow up until you’re satisfied.
Negotiated Discounts- Consider trying to negotiate lower medical bills. Certain physicians might be willing to do it and it certainly can’t hurt to ask. You might be able to get a lower price if you pay in cash, for instance.
Emergency Rooms- Use emergency rooms only in a true emergency. ER charges can be high and coverage for them can vary widely on policies. It’s best to limit your use of them.
Tax Break- Keep track of your medical expenses. If they exceed 7.5 percent of your adjusted gross income, you may be able to deduct certain expenses on your income tax.
Allowable expenses include healthcare services, eyeglasses, hearing aids and much more.
Lifestyle- Maintain a healthy one. Eat well, maintain a healthy weight and exercise on a regular basis. Take advantage of programs that offer nutritional advice and stress reducing tips.
Preventive Care- More and more doctors and hospitals are emphasizing preventive care as a way to reduce costs. This means get regular mammograms, go in for regular physicals, avoid sunburns, stop smoking and limit your alcohol intake.
Shop Around- And I mean seriously for health insurance. Like most insurances, premium costs and coverages can vary more widely than you’d think. In fact, you might be surprised to see the variance in price for identical coverages from different health insurance companies.
An easy way to comparison shop is online. You can compare policies side by side.
