Posts Tagged ‘health insuranace’

Forget Paying High Costs On Your Health Policy – Know Ways To Save Money

With the increase in budget restraints, most people have been struggling with their health insurance premiums as they can’t make ends meet with the meager funds that they earn. Since the unemployment rate has stubbornly stuck at a 9% rate, most people are wary about the huge amount of debt obligations that they have to repay with the small amount of money that they make. After the health care reform passed by Obama, everyone has to own a minimum coverage on their health insurance policies irrespective of their gross monthly income. Are you worried about the high premium costs that you have to bear throughout your life until you file a claim? Well, you need not fret as there are ways in which you can reduce the costs on the health insurance policy. If you’re oblivious about them, read on.

1. Take care of your health:Whichever policy you take out, you should know that the premium costs is decided by the risk that you pose. For an auto insurance policy, the premiums will be high if the automobile is more prone to risk. Similarly, in a health insurance policy, the more you’re likely to carry poor health conditions; the premiums charged will be higher. Your weight, cholesterol level, blood pressure are some factors that the insurer checks before deciding your premiums. Check your health conditions and if possible, improve them so that you can save your dollars on the health policy.

2. Quit bad habits like smoking and drinking:You must have various medical reasons of quitting smoking and drinking but have you heard that stopping this bad habit can help you save your dollars on your health insurance policy? If you quit consuming tobacco, this can result in savings on your health insurance policy. As smoking and drinking gives birth to various heart and lung diseases, you become more prone to filing a claim and giving way to fatal diseases. This is the reason why a non-smoker will be charged reasonable premium rates as compared to a smoker.

3. Agree to pay a higher deductible:While you take out a health insurance policy, you have to agree on a deductible amount that is the amount of money that you’ll pay out-of-pocket when you file a claim. Choosing to pay a low deductible amount will mean being charged high premium rates but if you choose to pay a higher deductible, you can grab low premium rates on the policy.

4. Change the co-insurance ratio:The most common co-insurance ratio is 80/20, which means that when you file a claim, you have to pay 20% of the bill and your insurer will pay the rest of the 80%. If you can change this ratio and pay more when you file a claim, this may mean lower premium rates on the policy. Just like changing your deductible amount, you also have to weigh the risks and the costs of making the changes.

5. Look for group health insurance plans: If you and your spouse both have group health insurance plans offered by your employer, you should take help of it so that it may cover both your needs and also help you save your dollars. However, if it doesn’t offer the same value, you should not go for them.

Therefore, when you don’t want your health insurance costs hurt your wallet, you should make sure that you take out the best policy that is marked by adequate coverage and low price. Manage your finances to make timely payments on the policy and avoid hurting your credit score.

Guest Post from Steven Mathew