Health Insurance Cost Cutting Tips

Health insurance is probably the most important coverage that anyone can carry, yet approximately 46 million Americans under 65 have absolutely no coverage. The reason for this is that health insurance premiums are very expensive and out of the budget range of many people. Not everyone has health coverage through their employer and must therefore pay for the entire cost of health premiums. This is especially hard for people with minimum-wage jobs whose employers do not provide health coverage. Someone with a minimum-wage job has to pay the same premiums as those with higher paying jobs and this can really put a big dent in the monthly family budget.

People are willing to gamble and not get health coverage because in many cases they have no other choice. It comes down to choosing to pay the rent and feed the family or pay for an eventuality that may never happen. This can put a great strain on people because they are worried about getting ill and not being covered.

There are several things that can be done to save money on health insurance that may make a difference in affordability for some people. The first thing that can be done is to raise the deductible. If the deductible is raised from $2,500 to $5,000, the premium can decrease from 25% - 40% depending on the part of the country. Another illustration is a deductible of $500 with a monthly premium of $484. If this deductible is raised to $5,000 the monthly premium goes down to $247. This may seem risky to some people but if you are in good health you will have saved $2,844 over one year.

Some of these savings can be set aside to provide an emergency fund in case a hospital visit is needed. It is better to have to pay a one-time deductible of $5,000 than to incur tens of thousands of dollars in medical bills if you are not covered by health insurance. It is possible to open a Health Savings Account that allows you to contribute money that is tax deductible. This money can be used tax free for medical expenses during the year.

When shopping for health care coverage it is a good idea to look at several different providers. The rates that are charged can vary greatly. The types of treatments that are covered can also vary for different providers. In the case of married couples who are covered through work it may be possible to choose the provider that costs less. Some employers contribute more to the monthly premium costs than others do. Compare plans and see which spouse`s plan is more favorable and then choose to go with that option. This can sometimes make a big difference in money saved. There are companies online that allow people to check the rates of many different health insurance providers so that the highest possible savings can be realized. Anyone in need of a loan can check the loans calculator to obtain the best rates.