Health insurance costs are on a rise. And according to the Thomson Reuters index released yesterday Healthcare costs for people insured through an employer rose 6.3 percent for the year. Healthcare costs are expensive and so are health insurance plans. And in such a scenario is it possible to have access to affordable healthcare? It certainly is. One only has to be a little careful about his health and healthcare choices. Here is a look at a few of them.
1. In US, where it is hard to determine if healthcare is more costly or healthcare plans, staying without medical coverage could potentially lead you to bankruptcy. It is better to pay regular premiums and be assured of coverage than having to whopping medical bills when you are being treated.
2. Managed healthcare plans may come with restrictions, but they are lot cheaper than indemnity policies. There is no compromise on the coverage as they provide primary and preventive healthcare. Hence plans such a HMOs and PPOs are a good option if you want to save up your dollars and yet want complete medical care.
3. Health insurance companies often come out with discount options. It is a good time to buy your health plan then.
4. Plans with high deductible usually have a low premium. So if you do not need regular medical attention and your policy is only a safety net, then these plans are also a good option.
5. Renewal rates are higher than new rates on premium. Therefore, it is not a bad idea to change your insurance company and health plan time and again.
6. Individual health plans are customized. So if you are sure not to use a few medical services, you can get them dropped off your plan. This will lower down the rates of your premium.
Each health plan is different from the other. Therefore, you should check out the permutations and combinations yourself before making a final purchase. However, the above mentioned are a few rules that are usually applicable to all plans and insurance companies.
Sunday, November 14, 2010
Tuesday, November 9, 2010
How to save on medical premiums?
Reducing the costs on your healthcare plan is possible but not easy. But the hundreds of dollars that you save on your premiums are certainly worth the efforts. One has to do an extensive research on the type of plans that are available, the kind of policy that is required and one should also be absolutely sure about the health needs of the people to be covered and the finances that they can afford.
Though there are no golden rules as each plan is different from the other, here is a look at a few possible ways that will help you bring down the expenses on coverage considerably:
1. A high deductible plan. This is an oft advised solution. A high deductible plan has a lower premium and therefore turns out to be a cheaper option for those who have insurance only as a security blanket. However, if you are one of those who frequent doctors and hospitals, you will end up paying almost all your medical expenses despite having a medical coverage.
2. A smaller network: If a plan includes your neighborhood doctors and other healthcare service providers in the vicinity, then the policy is a good option even though it provides limited choices. You don’t really need an elaborate network of service providers and thus can save money on it.
3. Managed healthcare plans like the HMO and the PPO are much cheaper than indemnity plans. Though there are restrictions, these plans are sufficient to take care of your basic health needs.
4. If you go in for a new plan rather than renewing your existing one, most often than not, you will end up paying a lesser premium.
5. Adding a limited visit restricted doctor visit co-payment is another little known way to save on premiums. By setting a limited number of visits which are covered you can save money.
These are some of the tried and tested ways of reducing the burden of healthcare plans. However, they come with a word of caution. There is no guarantee that these ideas will work for you as well. You will have to do your own calculations to find out that combination that you will suit you the best reducing the premiums on medical policies.
Though there are no golden rules as each plan is different from the other, here is a look at a few possible ways that will help you bring down the expenses on coverage considerably:
1. A high deductible plan. This is an oft advised solution. A high deductible plan has a lower premium and therefore turns out to be a cheaper option for those who have insurance only as a security blanket. However, if you are one of those who frequent doctors and hospitals, you will end up paying almost all your medical expenses despite having a medical coverage.
2. A smaller network: If a plan includes your neighborhood doctors and other healthcare service providers in the vicinity, then the policy is a good option even though it provides limited choices. You don’t really need an elaborate network of service providers and thus can save money on it.
3. Managed healthcare plans like the HMO and the PPO are much cheaper than indemnity plans. Though there are restrictions, these plans are sufficient to take care of your basic health needs.
4. If you go in for a new plan rather than renewing your existing one, most often than not, you will end up paying a lesser premium.
5. Adding a limited visit restricted doctor visit co-payment is another little known way to save on premiums. By setting a limited number of visits which are covered you can save money.
These are some of the tried and tested ways of reducing the burden of healthcare plans. However, they come with a word of caution. There is no guarantee that these ideas will work for you as well. You will have to do your own calculations to find out that combination that you will suit you the best reducing the premiums on medical policies.
Monday, November 1, 2010
Low Cost Insurance Options for Americans
It is the cost of healthcare plans that prevents most Americans from accessing them. Plans that offer comprehensive coverage are often costly and low-cost policies do not necessarily offer all the health benefits that you may need. And with the federal healthcare reforms making access to coverage compulsory for residents, people are scurrying up to find an affordable health plan that does not dent their budgets.
Here is a look at how citizens can offer suitable medical plans without having to compromise either on the coverage or with the budget.
1. Health Savings Account (HSA): HSAs are not insurance plans. These are accounts where you can save your dollars for future medical expenses. So, the premium that you pay for your plan can instead be saved in this account. HSA also entitles you to tax benefits, thus lowering your medical budget further.
2. Worker’s Compensation: It is a program that helps pay for injuries incurred during job. It could either be free/reduced medical care or lifetime stipends in severe cases. If your treatment is the result of an on-the-job injury, your employer must offer to pay with your company's Workers' Compensation program.
3. Individual/ Family plans: It is true that individual plans are often the costliest, but going in for managed healthcare plans bring down the costs considerably. Plans such as the HMO and PPO offer primary and comprehensive coverage at affordable premiums. Family plans, on the other hand, are the best of the lot. They offer the exclusivity of individual plans at the price of group coverage. Another advantage of individual or family plans is that they can be customized according to personal needs. Thus applicants will have to pay only for those benefits that anticipate using.
4. Short term Coverage: For those between jobs, this plan is the best option. The duration of coverage is short, but the premiums are low and affordable
5. Specific health plans: These are policies that cater to a specific disease, catastrophic diseases or for a specific period of time. These also come with low premiums.
6. Group Insurance: In the US, group insurance is the cheapest way to get coverage. Accessing insurance at work is less expensive as the rates are by nature less and a part of the premium is paid by the employer. If one does not get insurance from his employer, then he should look to be a member of group like an Alumni Association. He could access coverage through this group as well. Apart from their low cost, group insurance comes with a lot of added benefits that make it a hit among Americans.
The price does not always dictate the extent of coverage that a plan offers. Residents should go through all their options before finally purchasing a medical policy.
Here is a look at how citizens can offer suitable medical plans without having to compromise either on the coverage or with the budget.
1. Health Savings Account (HSA): HSAs are not insurance plans. These are accounts where you can save your dollars for future medical expenses. So, the premium that you pay for your plan can instead be saved in this account. HSA also entitles you to tax benefits, thus lowering your medical budget further.
2. Worker’s Compensation: It is a program that helps pay for injuries incurred during job. It could either be free/reduced medical care or lifetime stipends in severe cases. If your treatment is the result of an on-the-job injury, your employer must offer to pay with your company's Workers' Compensation program.
3. Individual/ Family plans: It is true that individual plans are often the costliest, but going in for managed healthcare plans bring down the costs considerably. Plans such as the HMO and PPO offer primary and comprehensive coverage at affordable premiums. Family plans, on the other hand, are the best of the lot. They offer the exclusivity of individual plans at the price of group coverage. Another advantage of individual or family plans is that they can be customized according to personal needs. Thus applicants will have to pay only for those benefits that anticipate using.
4. Short term Coverage: For those between jobs, this plan is the best option. The duration of coverage is short, but the premiums are low and affordable
5. Specific health plans: These are policies that cater to a specific disease, catastrophic diseases or for a specific period of time. These also come with low premiums.
6. Group Insurance: In the US, group insurance is the cheapest way to get coverage. Accessing insurance at work is less expensive as the rates are by nature less and a part of the premium is paid by the employer. If one does not get insurance from his employer, then he should look to be a member of group like an Alumni Association. He could access coverage through this group as well. Apart from their low cost, group insurance comes with a lot of added benefits that make it a hit among Americans.
The price does not always dictate the extent of coverage that a plan offers. Residents should go through all their options before finally purchasing a medical policy.
Sunday, October 31, 2010
5 ways to reduce health insurance costs for small businesses
Small businesses are always encouraged to offer health insurance to their employees. With the implementation of healthcare reforms, this conviction has got a new boost. Small businesses are offered tax credit if they offer health insurance to their employees. Admittedly, small business owners are concerned about the costs that could be substantial if they are to offer health insurance to their employees. In this article, we will discuss how small business owners could reduce the costs.
1. Small business owners should try to keep their employees healthy. This will have a direct impact on the health insurance premium when the plans would be offered. Wellness programs could be of great help to achieve this objective.
2. Small business owners can agree to offer basic coverage and ask the employees to share the costs if they need some specific medical care coverage. Excluding dental and vision insurance could be a good idea.
3. Small business owners should ask their employees to open health savings accounts. This is a very good way of saving costs.
4. Small business owner should offer health insurance plans in large groups so as to minimize the risk and therefore the costs.
5. With such boost given to the small businesses, it is wise to shop around to get better prices. The competition has certainly increased and small business owners could take the advantage of this in a constructive manner.
1. Small business owners should try to keep their employees healthy. This will have a direct impact on the health insurance premium when the plans would be offered. Wellness programs could be of great help to achieve this objective.
2. Small business owners can agree to offer basic coverage and ask the employees to share the costs if they need some specific medical care coverage. Excluding dental and vision insurance could be a good idea.
3. Small business owners should ask their employees to open health savings accounts. This is a very good way of saving costs.
4. Small business owner should offer health insurance plans in large groups so as to minimize the risk and therefore the costs.
5. With such boost given to the small businesses, it is wise to shop around to get better prices. The competition has certainly increased and small business owners could take the advantage of this in a constructive manner.
Wednesday, October 27, 2010
Reducing costs on student health insurance in US
With the health reforms getting implemented, students in America do not have to worry about accessing individual health plans. The Affordable Care Act now permits students to stay in their parents’ policies till the age of 26, the only exceptions being: 1. The student is married
2. Is living or studying in a place outside the area of coverage of the parents’ plan.
3. Does not have access to affordable insurance at work.
It is in situations like these that students have to have individual policies of their own. And the exorbitant cost of the premiums is often the biggest hindrance. Low cost health plans are the best option for students. Here is how students can access health plans that do not have costly premiums:
- Universities and colleges often offer discounted health plans to their students. These are often cheaper than regular individual plans
- Some health carriers have health plans specially designed for students. These offer comprehensive coverage at affordable prices.
- Insurance carriers come up with special offers and discounts at times. Students can avail health plan during then.
- Individual health plans that have high deductibles have a low premium. For students who are in the prime of their health, these plans are also an ideal way to lower down the costs.
- Specialized plans that are valid only for a specific period of time or only for particular medical conditions are also good cheap health insurance options.
- Managed healthcare plans like HMO and PPO offer primary, preventive and yet comprehensive healthcare services at reasonable costs.
- Students can also apply for government sponsored Medicaid if they cannot afford health plans at any costs.
Students often stay away from health insurance as they see it as a wasteful expenditure. The fact they are in the prime of their health adds to their confidence. But staying away from medical coverage in US could lead to medical bankruptcy. Therefore students in the country should ensure that they have medical coverage either on their own or through their parents.
What to look for affordable health insurance in California
• The main point to look for in an affordable health insurance plan is that it should offer the optimal level of health insurance to the consumers. Of course, the costs should be considered on the second spot.
• Consumers should understand the costs involved in any health insurance plan. It would include monthly premium, deductibles, copays or coinsurance, depending upon the type of the policy that a consumer buys.
• To make sure that affordable health insurance becomes a reality, consumers in California should know beforehand whether the affordable health insurance provides prescription drug coverage, doctor visits and hospitalization benefits.
• Consumers who need to see a specialist need to know whether the health insurance plan requires having referrals from a primary physician. If it is so, it is advised not to buy such health insurance plan
• Consumers should be aware of the procedure of company’s reimbursement services? Is it understandable and easy to execute? Many times, consumers find it difficult to go through the complex customer support services.
• Ideally, the insurers should have a 24x7 dedicated customer support service? If not, this could not be an ideal situation to realize the dream of landing on an affordable health insurance plan in California.
• Consumers should understand the costs involved in any health insurance plan. It would include monthly premium, deductibles, copays or coinsurance, depending upon the type of the policy that a consumer buys.
• To make sure that affordable health insurance becomes a reality, consumers in California should know beforehand whether the affordable health insurance provides prescription drug coverage, doctor visits and hospitalization benefits.
• Consumers who need to see a specialist need to know whether the health insurance plan requires having referrals from a primary physician. If it is so, it is advised not to buy such health insurance plan
• Consumers should be aware of the procedure of company’s reimbursement services? Is it understandable and easy to execute? Many times, consumers find it difficult to go through the complex customer support services.
• Ideally, the insurers should have a 24x7 dedicated customer support service? If not, this could not be an ideal situation to realize the dream of landing on an affordable health insurance plan in California.
Monday, October 25, 2010
Why is your health plan costlier than others?
Looking for health insurance and confused about different health plans? Confused why your medical policy costs more than your friend’s? Wondering how is your premium calculated? Here is an overlook on the factors that contribute towards the premium on your health policy.
1. Locality
Insurance laws vary from state to state. And so does the cost of health plans. Price of the premium depends heavily on the regulations of the state and therefore the costs differ from state to state.
2. The type of Health Plan
The cost of an individual health policy will differ from a group plan to a family policy. Government sponsored health plans will have significantly lower premiums as compared to private policies. Accessing a health plan at work will be cheaper as the cost of the premium is shared by the employee as well as the employer. Similarly an indemnity health plan is much more expensive than a managed healthcare policy. Even in managed health plans, a HMO is cheaper than a PPO or a PoS.
3. Age
It is the single most important factor that determines the cost of the premium. The older one gets, the more his chances of falling sick and therefore the cost is higher. Therefore it is always advisable that the sooner one buys a health plan, the better and cheaper it is.
4. Lifestyle
Drinking or smoking puts an individual at a greater risk of health problems. Being overweight is also considered to be a health risk. Thus a person who smokes or consumes alcohol or is obese has to pay more for his health coverage than others.
5. Health Status
People with pre-existing medical conditions are often charged more for their health plans. Their applications are rejected quite frequently as well. Residents with existing medical conditions normally pay a higher premium than those who do not suffer from any illness.
6. Coverage
A short term plan or a policy that caters only to a specific disease will have a much lower premium as compared to a regular medical policy.
7. Added benefits
This applies mainly to individual health plans. Individual policies can be customized according to personal health needs of the person. So if a person has needs more benefits or extra coverage, then he would have to pay a higher premium.
Health plans are not ‘one-size-fits-all’ and so are the costs of the premium. The price on the premium depends on a various factors and the combination of these factors decides the price of that particular health plan.
1. Locality
Insurance laws vary from state to state. And so does the cost of health plans. Price of the premium depends heavily on the regulations of the state and therefore the costs differ from state to state.
2. The type of Health Plan
The cost of an individual health policy will differ from a group plan to a family policy. Government sponsored health plans will have significantly lower premiums as compared to private policies. Accessing a health plan at work will be cheaper as the cost of the premium is shared by the employee as well as the employer. Similarly an indemnity health plan is much more expensive than a managed healthcare policy. Even in managed health plans, a HMO is cheaper than a PPO or a PoS.
3. Age
It is the single most important factor that determines the cost of the premium. The older one gets, the more his chances of falling sick and therefore the cost is higher. Therefore it is always advisable that the sooner one buys a health plan, the better and cheaper it is.
4. Lifestyle
Drinking or smoking puts an individual at a greater risk of health problems. Being overweight is also considered to be a health risk. Thus a person who smokes or consumes alcohol or is obese has to pay more for his health coverage than others.
5. Health Status
People with pre-existing medical conditions are often charged more for their health plans. Their applications are rejected quite frequently as well. Residents with existing medical conditions normally pay a higher premium than those who do not suffer from any illness.
6. Coverage
A short term plan or a policy that caters only to a specific disease will have a much lower premium as compared to a regular medical policy.
7. Added benefits
This applies mainly to individual health plans. Individual policies can be customized according to personal health needs of the person. So if a person has needs more benefits or extra coverage, then he would have to pay a higher premium.
Health plans are not ‘one-size-fits-all’ and so are the costs of the premium. The price on the premium depends on a various factors and the combination of these factors decides the price of that particular health plan.
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