Private medical insurance costs have been riding steadily over the last few decades. However, the pace seems to be accelerating. Costs for coverage can rise by 20% overnight and force you to make tough decisions about your healthcare coverage.
What to do About the Increases
- Consider dropping unneeded coverage
- Consider a higher deductible HSA plan
- Compare health insurance quotes from different companies
Consider dropping unneeded coverage
Certain insurance coverages, most notably maternity coverage, can have a tremendous impact on your premium. If you are no longer interested in increasing the size of your family and have maternity insurance, look into switching to a different plan. Moving to a similar health insurance plan that doesn’t cover childbirth may be the easiest way to reduce your costs for medical insurance. Prescription coverage and dental insurance may also be things you can do without. Dental Insurance is often overpriced. Individual dental insurance is often very limited; it may not cover much more than cleanings. This may not be true of the dental insurance you get as an employee. However if you purchased dental insurance as an individual, you may do better by paying for your cleanings in cash.
Consider a high deductible Health Savings Account (HSA) plan.
Very often the costs of a high deductible plan will be so much lower than the price of a low-deductible medical insurance plan that the savings will cover your deductible in full. This is a great idea to explore. When comparing plans look at the difference in the deductibles and the difference in the ANNUAL premiums. You may be surprised at how much you can save by moving to a higher deductible plan.
Compare health insurance quotes from different companies
There are bargains out there, although there are also lousy policies. You should check with your state’s insurance department to make sure that any company you are considering is approved to sell in your state. Independent brokers can often give you a less biased opinion of a given company. Speaking with one may help you eliminate certain options that would just serve to drain your pocket book and not give good coverage.