Health insurance is one of the most widely disputed topics of insurance right now. With the US Government stepping in and trying to develop a new method of providing insurance and health care for Americans, many have taken a passive role and are counting on changes to be made for them. Without getting into the various political views of this, the thought process and hope of a new plan being implemented in the near future is not secure, and you should still continue to plan accordingly.
Although it is not required that every American have health insurance, it is a very important type of coverage to have. Without our health, much of our lifestyle would change. Health insurance motivates people to visit their doctor every year and have preventative screenings completed such as an annual physical. It allows Doctors to discover health problems early enough so that illnesses can still be treated. Not only does it cause people to be healthier, but it also limits an individual’s financial risk of medical needs for catastrophic circumstances.
With the steady increases in health insurance premiums that we’ve witnessed over time, many people have either struggled and continued to pay the increasing premiums or simply dropped their health insurance coverage. Employers have begun reducing their funding toward these benefits and some have completely terminated them. What most people are not aware of, however, is that there are ways of maintaining quality health insurance without paying a fortune.
Much of deciding on the appropriate health insurance plan for a person or business is based on the personal circumstances. Whether medical and pharmaceutical benefits are used often or barely ever may impact which plan is most appropriate for a person. In some states, gender may even have a lot to do with which plans are most appropriate. Some states allow separation of benefit types which can be elected or not elected based on the insured’s circumstances, such as pregnancy benefits. Your current health insurance may provide pregnancy benefits that are completely unnecessary. If so, there may be a great potential for savings by simply eliminating pregnancy benefits.
Many insurance providers now-a-days have made “high deductible – consumer driven health plans” much more attractive than the old “Cadillac” type of plans. Rather than having a health plan where you only pay a $10 or $20 copay every time you visit the doctor, many newer plans will have a deductible that must be paid out of pocket, prior to the insurance company paying any benefits. For someone who only sees a doctor once a year, this is a great deal. On average, moving to a deductible plan will save a person more money in premiums than would have to be spent in deductible. For example rather than paying $220/month for a low co-pay plan, you might only pay $100 for a plan that has a $1,200 deductible. Although $1,200 sounds like an enormous amount, by switching to the deductible plan, you are saving $120/month in premiums which equals $1,440/year. This means that even if you spend the entire deductible, you still save $240 dollars/year. For someone who only sees a doctor once a year, chances are good that you will save more like $1,200-1,300 per year.
The final savings technique this article will cover is the concept of HSA medical plans. These plans allow people to deposit funds on a pre-tax basis into a Health Savings Account, which may be connected with the health plan or completely separate. Each participant is issued a debit card that is connected to this account, and must be used when paying for any medical care or medications. This essentially allows people to pay for their health care on a pre-tax basis. The concept of a Health Savings Account is actually quite simple, but simply different than what most people have been accustomed to. For someone in a higher tax bracket, the additional savings of paying with pre-tax dollars is more significant than that of someone in a lower tax bracket. Nonetheless, these savings can be tremendous.
There are plenty of ways to save money on your health insurance. Some people have already taken advantage of these methods but many have not. If you feel that you are paying too much for your health insurance premiums, or would simply like to speak with someone to review your coverage and discuss your options, contact the Health Insurance Professional Michael Kortz, RFC, RR, HIP. There may be something that better suites your needs. You shouldn’t leave your health care up to chance. Call (949) 226-8390 or visit http://www.tfp8.com today.
Michael Kortz, RFC, RR, HIP is a Registered Financial Consultant (RFC) who holds a degree in Economics from the University of California at Irvine, and and has received the Health Insurance Professional designation from the National Association of Health Underwriters. He has been an insurance broker since 1999 and operates a boutique insurance brokerage firm in San Clemente, CA. He offers complimentary health insurance policy evaluations and can be contacted at (949) 226-8390.
