Money Savings Health Insurance Ideas

Covering your spouse and/or children under a group plan generally is more expensive than with an individual insurance plan. Employers usually contribute very little, if anything, for dependents. True group insurance is guaranteed issue and the price reflects this. If your dependents are healthy, compare the cost with individual plans – you might be pleasantly surprised.

Consider using an HSA plan rather than either a traditional PPO or HMO. By only insuring what you truly can’t afford, you can reduce your costs by 30-40-50% or more. You will also be able to take advantage of potential tax savings as well.

Divide and conquer! Just because you love your family does not mean that you must be with the same policy or even with the same company. There can be many advantages to splitting up the family unit, both for coverage and cost. Young children use more services than parents. It may save you considerable cost by using a high deductible plan for the parents and insuring the children on plans that include office visit copays and first dollar coverage for medication.

Review your insurance on a regular basis. There are new plans available each and every year. If you are healthy, you may be able to change into a different plan at a lower cost. Some companies will allow you to transfer to a higher deductible which can lower your premium within the same carrier. You should be speaking with your agent regularly.

Check the cost of the same plan with a higher deductible. The savings in premium can be close to the increase in the deductible.

And check those zero deductible plans. They look good because they start paying immediately but in a catastrophe you can be out of pocket $7,500 or more.

One way to NOT save money is to be your own insurance agent. It is illegal in California for an insurance company to charge less if there is no agent.

By using an “instant quote” site you will not receive the advice that only a professional can give. Going directly to the company does not save you any premium either. Use an agent you can trust and allow that agent to help direct you to the most cost effective plan available.