How to Lower Your Healthcare Premium

Health Insurance charges are on the rise, and evenamount. In most insurance policies the carrier will pay a
though wages are stagnant, insurance costs aresmaller amount and will have a higher deductible.
expected to continue on their upward trend. InsuranceFor Example: You go in for surgery and the doctor fee
is supposed to protect against catastrophic medicalis $1000 dollars. If you go to an in-network provider, the
expenses, not paying for regular health maintenanceinsurance carrier will pay 80% of the bill and you will
cost. Here are a few ways you can save on yourresponsible for 20% of the contracted amount of
health insurance costs:$850. Know if the provider is out-network you can be
1. Stay Healthycharged the total bill of $1000, because there is no
Exercising on a regular basis, stop smoking, andagreed amount with the insurance carrier. Most
healthier diet can help keep you in preventing orinsurance companies do cover out-network fee but at
improving certain disease and/or conditions. Manya reduced rate of $1000, not the contracted amount of
insurance companies are award their member with$850.
discounts on gym membership's, quit smoking plans,8. Regularly reassess you insurance needs
health screenings, and some health products. Also,Changes in you marital status, birth of a child, and if
many health insurance carriers cover up to 100% ofyou medical needs have changed, Can affect the cost
wellness care for routine check-ups, immunization andof your insurance.
diagnostic test. They also offer preventive service9. Know your Health Insurance Policy
sometimes with or without a waiting period. MostBy having a better understanding of your health plan,
preventive services cover mammograms, pap smears,for what is covered and not cover will help you from
and PSA screening to just name a few.being surprised from any unnecessary fees. Many
2. Increase your deductibleinsurance companies offer online access where you
A deductible is the amount of money which thecan check your benefits, check for in-network
insured party must pay before the insuranceprovides and hospitals in your area check drug prices,
company's own coverage plan begins. If you are aand the ability to see how your claim was paid etc...
relative health person, a higher deductible can help youRemember, if you have it use it!
lower your monthly premiums by up to 10 to 40%.10. Lower your Drug Cost
3. Change your Coinsurance amountYou can lower your drug cost by asking the provider
Coinsurance is the percentage amount you and thefor free samples of any drug you may be taking. Most
insurance carrier share in the cost of medical cover.doctors have a closet full of them. Tell your provider
Coinsurance comes in various amounts from 100%,that the drug is too expensive for your budget, many
traditional 80/20, 75/ 25, and the 50/50. Ex: most planshospitals offer assistance with the cost, through the
are 80/20 which means after you might you deductiblefinancial department. Most major store chains such as
the insurance carrier will cover 80% of the charges,Wal-Mart, Walgreens, and CVS etc... Have prescription
and you would be responsible for 20%. By changingdrug plans for $4.00. Drug maker's operates multiple
your coinsurance you can save between to 10 to 20%assistance programs, depending on the prescription for
more off your premium. Remember, by changing yourfree or at a discounted price. Consider buying
coinsurance the more you will be responsible for moreprescriptions through a mail order pharmacy.
of the cost.11. Seek out free or low cost Health Screening,
4. Increase your physician co-pay amountcheck-ups and services
By increasing your co-pay, you can reduce yourYou can find them in your local newspapers, grocery
premium by as much as 25%, which is worth it ifstore bulletins, local library or community event. EX:
you're seeing a doctor more than twice a year. ButHere in Indiana we have the INShape Indiana Black &
determine what the co-pay actually covers - does itMinority Health Fair where the cost is free anyone and
cover diagnostic tests like lab and x-ray, or does it justyou can receive over $1000 worth of free medical
cover the doctor visit?screenings.
5. Increase your Out-of-Pocket cost12. Take advantage of tax breaks with a FSA or HSA
Out-of-Pocket is the total annual cost you pay forPlan
health insurance coverage before the plans paysFlexible spending arrangement (FSA), a
100% of your claims. The more you agree to pay fortax-advantaged account that allows an employee to
out-of-pocket expenses in the form of deductibles andset aside a portion of his or her earnings to pay for
coinsurance payments the less you'll pay in premiums.qualified expenses. The advantage is that money
6. Consider a Major Medical Health Plandeducted from your check into an FSA is not subject
Commonly called Catastrophic Health Insurance, theyto payroll taxes; but the disadvantage is that funds
offer limited insurance coverage for routine medical orcannot be rolled over and must be spent on qualified
doctor visits with a high deductible. Premiums are lowhealth care related expenses, so if you don't use the
because the insurance is intended for major medicalmoney you'll lose it.
expenses such as hospital stays, x-ray's, and surgeriesHealth Savings Account (HSA), and allow you to put in
to name a few. The high deductible that must be paidpretax contributions that grow tax-free and can be
out of pocket before the insurance kicks inrolled over from year to year. Your deductible can
7. Make sure your doctor or hospital is In-Network orthen be paid with funds from your HSA account, or
Out-Networkyou can pay your deductible out-of-pocket and save
Most insurance companies provide an extensive list ofthe money in your account and to assist in paying for
providers and hospitals that are in there contractedqualified medical expenses.
network. By going to an in-network provider you will13. Check for state-run programs that offer free or
receive a higher savings on medical care. Reasonlow-cost insurance.
being is that these providers are contracted with the14. Paying for what you need
insurance carrier to provide their services at an agreedRemember, in the long run you are in-charge of your
amount discounted fee. By going to an out-networkhealth care cost.
provider you will be charged the non-contracted