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.
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