Everyone wants to know the secrets behind saving money. When it comes to health insurance, there are a few different things that consumers can try to take advantage of when it comes to reducing costs.
Get a high deductible plan that is compatible with a Health Savings Account (HSA). Individuals are only eligible if they have a $1,200 deductible but can save up to $3,100 a year for health care services. And, families are eligible for an HSA if they have a $2,400 deductible but are allowed to save up to $6,250 a year.
There are many advantages to Health Savings Accounts which include:
- Funds in HSAs college interest
- HSA funds roll over year to year
- Funds are saved for future medical costs and retirement health costs
- HSA contributions are deductible from income taxes
- There is a catch-up period between the ages of 55 to 65, which allows consumers to save an extra $1,000 in the HSA
Pick a health plan with a limited network. Health insurance plans with limited networks are able to negotiate cheaper rates. But if you travel a lot or commute to work, this may not be the best option.
Mix and match health insurance policies. Many consumers tend to go with one group health insurance plan instead of comparing the group plans or plans on the individual market. For example, say a married couple has a health insurance policy with one employer but it may actually be better financially for the husband to stay on his work’s group plan and the wife to stay on her work’s group plan. It all depends on how much a company passes on to the employees in terms of premium costs for dependents.
Review your health insurance and care needs over the years. Health care needs change over the years so if you have one plan that you enjoy and are comfortable with, call your health insurer to change to a same plan with a different deductible. As consumers age, they tend to use health care services more, so it typically makes sense to lower the deductible and pay a little more in monthly premiums.
Understand the risk you are taking on. Many consumers go for the plans with the lowest monthly premium but may not understand that they are responsible for the $5,000 deductible after utilizing health care services.
For example, there is a plan that has a $2,500 deductible and costs about $88 per month. That same plan is available with a $10,000 deductible and costs about $56 per month. A consumer paying $32 more per month means that the consumer will only be responsible for $2,500 in case of an illness or injury instead of $10,000. And, that big of a difference between deductibles can put someone into medical debt.