Insurance Secrets That Will Save You Money

By Brian Richards

If you are looking to reduce your health care costs without losing coverage, don’t worry, it can be done. Some of the benefits offered by health insurance companies are overpriced for what you get, and other benefits offer a good value, based on certain neds. You will be required to do a little bit of legwork and research to determine what plans are the best for you because none of us have the same health care requirements. But the possibility of saving hundreds of dollars each year on premiums is a benefit that cannot be overlooked. Here are a few tips you may want consider:

Increasing your deductible is one thing that can help. The deductible is the amount of money you must put out each year before your insurance begins paying. Most Americans don’t have many doctor visits each year, so increasing your deductible could save you hundreds of dollars per year. In some cases, it has been shown that by increasing your deductible by an additional $500, you could save the same amount in yearly insurance premiums.

Another way to save on premiums is to add a doctor visit copayment with a limited visit addendum. Copayments are the amounts you have to pay each time you go to the doctor, usually between $15 and $40. Without a copay you have to pay the entire amount of each visit until your yearly deductible amount is reached. If you think you’ll be having several doctor’s visits, then a copay may be to your advantage. And if you set a limit on the number of covered office visits, you’ll come out ahead and save some money.

Most plans today are either PPO or HMO, with both offering coverage within a pre-determined network of doctors and medical caregivers. PPO’s often allow a wider spectrum of specialists while HMO’s require you to choose a primary doctor. If you require a visit to a specialist under a HMO plan, you won’t be covered unless referred by your doctor. Selecting an HMO will reduce your coverage, but the cost to you will be less.

The best kept secret in the industry is getting re-underwritten. Underwriting is a process by which insurers base your charges on a series of factors such as your present health, your age and future risk. Riskier people cost more, so they pay more. Most insurers also put you into “pools”, which may include several plans with a preset number of insured. They then base the premiums on the overall health performance of the pool. That is, if many in your pool get sick, then your rates go up even if you haven’t seen a doctor. So asking for a different policy may often put you in another pool.

Or changing carriers will certainly do it. Before changing carriers, ask your current policyholder if they can match or beat the rate. Insurance industry insiders state that you can almost always find a lower rate by changing plans every year. If you have questions regarding this, contact your local insurance agent. Getting the best rates for you and your family doesn’t have to be complicated, but it will take some thought and research on your part.

Whether you are shopping for self employed insurance or an individual health insurance policy, that you can afford, log onto www.individualhealthquotes.com.

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