Health Insurance Articles

How To Keep Premiums Down For A Basic Health Plan

2011-11-05

A health insurance policy is something that everyone should have. It is the best protection against potential financial disaster. The difficulty for some people is that the cost is beyond their budget. Here are some practical and effective ways to get a basic health plan and keep it affordable

Choose an HMO. A health insurance policy issued by a Health Maintenance Organization is less expensive than one from a Preferred Provider Organization (PPO) for many reasons. But those reasons may not be of real importance. Often, HMOs are able to obtain better rates for medical services and procedures through negotiation and then pass the savings along to their policy holders. If the physicians and the restrictions in the plan, such as requiring a referral to see a specialist are acceptable, the HMO is a good choice and provides significant savings.

Choose a Higher Deductible. This is true with virtually all insurance policies. By increasing the amount for which the insured is responsible before a basic health plan kicks in, the cost of the health insurance policy will be reduced. The higher that amount, the lower the premiums will be. This is the simplest and most direct way to control the cost of your coverage.

Choose a Higher Co-Insurance Amount. Once the deductible has been met, the policy holder will be responsible for a percentage of all additional medical expenses, usually around 20 percent. Basically, this is how much he contributes towards paying the medical bills. The more the insured party pays, the less the carrier has to pay. That results in lower premiums and a more affordable health insurance policy. The savings for both the deductible and the co-insurance depend on chance to some extent. One must decide if the benefits outweigh the potential risks.

Choose a Catastrophic Health Insurance Policy. As with the others, this option is part of a basic health plan. These policies do not offer all of the extras and options of comprehensive health plans, but they do protect from the effects of a life-changing medical event and they are much less expensive. With catastrophic coverage, the insured is protected against a worst case scenario but pays more for some things like prescription and office visits. Still, in most cases, the overall cost is much less.

Be Safe and Careful. Health insurance policy premiums are partly based on the insured party's state of health, of course, and how he spends his time. Dangerous jobs and hobbies add to the cost of the policy as does an unhealthful life style. It is best to maintain a routine of physical activity and good eating habits to help lower the cost of a basic health plan.