Whether you are looking out for yourself, have a family depending on you, or are planning for the future, saving money on your monthly health insurance premium is always a good thing. Most families average around $5,000 per year in premium costs.
This can lead many to think that they should face the risk of not having health insurance. Making this choice can still pose many frightening scenarios, as more than half of all official bankruptcies are filed due to hospital visits and unplanned medical events.
What are Some of the Costs Patients Face?
Your Premium is the amount you’ll be required to pay every month to have a policy. These expenses will come in handy for ER or doctor’s visits. Even if you are perfectly healthy, having health insurance helps you be prepared for anything from a scraped arm to emergency cardiac issues.
The Co-Pay is the rate that you are charged each time you see a healthcare professional. It may be immediate or scheduled, and it is a much lesser charge than the total bill an uninsured visitor encounters. An average patient can expect to pay around 30-45 dollars each time.
Your Deductible is the amount that you need to pay before your plan covers the brunt of the costs. A common deductible is $2,000: once you pay this cost, you are seen for procedures such as an MRI or CT scan.
A Coinsurance Expense is what you could be responsible for if your plan does not pick up 100% of any remaining costs after your deductible is met. If you have reached your deductible limit and your coinsurance amount is 20%, your company will cover all expenses that are in the remaining 80%. The reason this exists is that in the event of something traumatic such as a brain injury or car accident, the companies that can give you coverage now have a bit of insurance for themselves when it comes to very large amounts for long-term and ICU-type care.
What Are Some Great Ways to Save Money on Health Insurance?
The Benefits of Keeping up On Workplace Availability: Insurance offered by employers still covers around half of the most common reasons for a doctor’s visit. Even though group plans are now seeing rising costs, your employer still will share the expense of premium costs you incur, which is one giant step towards ultimately saving you money. If you opt for an individual plan, you at least get to choose your preferred company (like us here at the Alexander Agency!) and can even switch jobs without completely losing your coverage. Another great benefit of an employer-sponsored plan is the choice to see which GP or specialist you prefer.
The Pros and Cons of Different Plans:
- HMOs may only be covered if you stay within a closely monitored network, but they measure up compared to what is available through many employers and even offer some tax-free savings via health savings accounts.
- POS, or point of service plans may mandate you to choose a primary care physician, but still provide you the comfort of knowing that routine work such as blood draws, routine checkups, and a familiar face that knows what you are medically prone to.
PPOs are a workplace-offered type of coverage that allows you to pay less when you select your preferred doctor from their network. We know that just looking at premiums such as $7,000 and up for a single individual may be enough to leave you riddled with anxiety, but undergoing an accident that lands you in the ER without insurance will give you an even higher level of financial strain.
Having Peace of Mind With Health Savings Accounts: An Health Savings Account is set up for you to contribute the money to a savings account that is solely for your health care, without Uncle Sam getting a piece. This tax-free option allows you to save money with much lower monthly HDHP premiums, and you still enjoy the benefit of your contributions when a new annual calendar begins. The advantage to using pretax money for health care and co-payments allows for a reduction in your overall cost, and sets you up for a very useful tax deduction to boot.
Watching the Wallet by Staying in The Network: Almost every medical situation allows for saving money by choosing hospitals and doctors that are within your health care plan’s network. These providers benefit from a repeat visitor such as yourself and have agreed to make their fees lower for the members who are included in the plan. If you have an HMO plan, you will probably be responsible for the entire cost from an out-of-network provider, and if you have a PPO or POS plan, the cost may gradually trend upwards.The Winning Element of a Skilled Professional: Everyone here at Alexander Insurance Agency of St. Charles can help you look at your options and show you how copays and deductibles will affect how much money you save on health insurance. This is one area of your monthly budget that you will want to have full confidence in, and we can provide you with a plan that will meet all your needs. If your job already has you covered, we are also standing by to assist with your auto, boat, or life insurance, and will always be just one call away when questions or concerns need our attention!