Cheap Health Insurance
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As medical costs continue to rise, many individuals and families are interested in cheap health insurance coverage. But choosing cheap insurance can be tricky. It's crucial to understand which discounts are legitimate, and which ones may result in inadequate coverage that could lead to outstanding bills and accumulating debt in the case of a medical emergency.
Why Bother With Health Insurance?
When looking to cut costs, one of the first questions people ask is why should they bother with health insurance anyway? They’re healthy, not prone to chronic conditions, and have never needed to invoke the insurance system before, so wouldn’t the cheapest option be to drop their coverage altogether?
This may seem like a good idea, but it's important to remember two things:
- Health insurance is emergency coverage
- Insurance providers often have discretion about whether or not they choose to cover pre-existing conditions.
If you were to cancel your coverage and then get into an accident, even a minor one, (slip on a patch of icy sidewalk, twist an ankle going down the stairs, cut yourself while cooking dinner, etc.), you could face steep emergency room bills.
Similarly, if you are without insurance but develop an ongoing condition –- diabetes or heart disease, for example –- insurance carriers may refuse to cover you, whereas a current provider would be more willing to enhance your coverage to accommodate your changing needs.
Even if you don’t use your policy frequently, maintaining adequate health insurance is a protective measure that doesn’t need to cost a mint.
Cheap Health Insurance Tips
There are many ways to lower your health insurance costs, including:
- Raising your deductible -- you would pay a higher initial cost should you need service
- Opting for higher co-payments in exchange for lower premiums if you use your insurance infrequently
- Dropping unnecessary coverage -– eliminating pregnancy and prenatal coverage if you will not have children, for example
- Investigating discounts for your specific career, health history, or insurance claim history
- Investigating discounts for paying premiums in a lump sum instead of monthly
Improving Your Health for Discounts
One of the best ways to get cheap health insurance is to not need it in the first place. Individuals with a healthy past are generally offered lower premiums because they are considered less likely to use expensive services. While you may not be able to change your health history, you can begin to build a healthier past by adopting a more conscientious lifestyle with certain healthy changes, such as:
- Quit smoking. Many insurance carriers offer substantial discounts to non-smokers.
- Join a gym. Demonstrating a dedication to exercise can lead to insurance discounts.
- Lose weight. Overweight and obese individuals are at a greater risk for many health problems, and their insurance rates are generally higher even if they have not demonstrated those problems.
- Limit alcohol. Light to moderate drinking has proven to have some health benefits, but excessive alcohol intake is detrimental and can lead to higher health insurance premiums.
- Take a multi-vitamin. Keeping your body healthy by giving it the minerals and vitamins it needs to function properly is a significant step toward not needing to use your health insurance.
- Get regular physicals. Catching problems early can substantially reduce medical expenses, and insurance carriers may offer discounts to individuals who get regular check-ups.
By adopting a healthier lifestyle, not only do you have the opportunity to lower your health insurance premiums, but you will be using the policy less and therefore paying fewer health expenses overall.
Finding Cheap Health Insurance
There are many places to find discounted health insurance policies. Before buying a particular plan, be sure to research that it meets your health needs, and price compare against other policies to find the best deal.
Options for inexpensive health coverage include:
- Employer’s Insurance Plans: Many employers cover their employee for free and offer discounts for additional family members.
- Self-Employed Plans: Investigate group plan options through professional organizations and trade associations.
- Medicaid: This state-controlled plan provides discounted health insurance to low-income individuals and families. State requirements vary, so be sure to investigate whether or not you can qualify for the plan.
- Medicare: This federal insurance is offered to individuals over 65 years old as well as disabled individuals. Requirements and precise coverage may vary for individual circumstances.
- Online Insurance Providers: These companies can offer discounted rates because they function electronically rather than amassing paperwork and cumbersome office procedures. Always check that the provider is licensed to operate in your state and for the type of coverage you seek.
Non-insurance options that can help cover medical expenses:
- Health Savings Accounts: These accounts are not insurance coverage but do provide a way for individuals to save for potential and unforeseen health expenses. The accounts also provide tax benefits, and they roll over from year to year to accumulate larger sums.
- Flexible Spending Accounts: These accounts are a way for individuals to pay for co-payments and deductibles from a sheltered account, though they are not health insurance. Many employers offer these plans and may match contributed funds, but be aware that these accounts frequently expire at the end of the year and accumulated funds may be lost. FSAs may also be used to save money for prescriptions, doctor visits, and other health-related expenditures.
- Discount Medical Cards: These subscription plans offer members substantial discounts on frequently used services such as prescription drugs, eyeglasses, allergy shots, and dental visits. Be wary of excessive administrative or monthly member fees that can raise costs, however.
To find and compare different health insurance costs and options, visit the following websites for local quotes and provider information:
As Health Needs Change
As your health needs change -– adding new family members, growing older, or developing greater health concerns -– be sure to reevaluate your coverage and determine whether it provides adequate protection. By knowing how to find cheap health insurance and how to take advantage of discounts, it is possible to keep insurance costs low without compromising your coverage.
This page has been accessed 431 times. This page was last modified 19:22, 12 January 2007.
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