How to Control Individual Health Insurance Cost

Several times per year, your health insurance cost increases. Due to the way our medical system is set up, the costs of medical care continually rise. It can be pretty discouraging to spend a big portion of your income on medical expenses. While you cannot control the system as a whole, you can do your best to control your individual medical expenses. Here are a few ways that you can control your individual health insurance cost.

Get the Best Rate

One way that you can save money on health insurance is to not settle for bad deal on your policy. Many people give up looking for insurance after they get accepted into one plan. You might get a plan because your parents had it or someone else you know has it. If you are not tied down to a certain plan with your work, you have several options. Get out there and do a little bit of shopping for the best rate. If you look long enough, you will be able to find something that you can afford.

High Deductible

One way that you can directly affect your premium is to raise your deductible level. Raising your deductible will lower the rate you pay on your premiums. Those that have lower deductibles, typically cost the insurance company more money. Therefore, they have to compensate for that loss of funds in higher premiums. Get in the mindset that your insurance is to prevent large medical bills. You can handle all of the little things on your own.

Health Savings Plan

To go along with a high deductible health insurance plan, you can get a health savings account. A health savings account is a financial tool that allows you to save money tax-free for qualified medical expenses. You can also deduct the amount that you deposit off of your taxes at the end of the year. This type of plan allows you to put back enough money to pay your deductible in the event that you have a medical claim. You can continue to save until you get up to the total out-of-pocket expense as well. This will allow you save enough money that you don't have to worry about medical expenses any more. If you have to pay out of pocket, your health savings plan will cover it. Beyond that, your insurance will cover it. A health savings account is a great way that you can directly affect your health insurance cost.

Change Coinsurance Percentage

Many health insurance plans will allow you to lower or raise your coinsurance percentage. The coinsurance percentage is the amount that you pay above your deductible. The bigger percentage that you are willing to pay, the lower your insurance rates will be. A common split is 80/20 where the insurance company pays for 80% of costs and you pay for 20%. If you were to change that to 70/30, your premiums would go down.

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