Ways you can lower your health insurance premiums
Here are a few simple steps you and your family can take to keep health insurance premiums at their lowest.
- Be Healthy.The healthier you are, the fewer visits to the doctor you’ll need to make, which means you will have lower out-of-pocket medical expenses. If you are a non-smoker and maintain a healthy weight, you’ll pay less for premiums because you will have decreased health risks. If you are a smoker or are obese, you are twice as likely to have a heart attack, and you are at increased risk for respiratory diseases, strokes, and cancer.
In order to stay healthy, simply eat a well-balanced diet and exercise regularly. This will lower your risk for diabetes, heart conditions, high blood pressure, and much more. If you are a smoker, you should know that if you quit, your insurance company might be willing to reverse your higher premiums if you can prove that you’ve been smoke-free for more than a year. - Accept a Higher Deductible to Lower Premium Costs. The deductible is the amount you have to pay out-of-pocket before your insurance helps cover your medical expenses. Usually, insurance plans with higher deductibles have lower premiums, and vice versa. So, if you are healthy and don't have a frequent need for medical attention, consider choosing a plan with a higher deductible so that you can spend less on your premium.
- Open a Health Savings Account. Certain High Deductible Health Plans (HDHPs) qualify you to open a Health Savings Account (HSA). The idea is that qualified HDHPs cost less than traditional plans and the money you save in premium can be put into an HSA to help fund your health care needs. HSAs have the following tax advantages as well:
1. The money you put into your HSA is tax deductible.
2. The money inside your HSA grows tax free.
3. You can use the money in your HSA to pay for qualified medical expenses without tax penalty.
4. The money accumulates year to year and any unused money can be used for retirement. - Contribute to a Flexible Spending Account.If your employer offers a flexible spending plan, you can set aside a portion of your paycheck to help pay qualified medical expenses. This contribution is taken from your check before taxes are deducted, lowering your overall taxable income and creating a "tax-free" money reserve to help minimize the burden of expensive health care needs that may occur down the road.
- Choose a Health Insurance Plan Early in Life. Your health insurance premium varies greatly depending on your age. So if you buy a policy at the age of 21, you’ll pay a much lower premium than a person over the age of 40.
- Take Advantage of Available Free Services. Many neighborhood health and wellness programs monitor cholesterol and blood pressure, and offer free mammograms and other preventive screenings. These services can save you money in the long run by detecting serious health problems early, making them easier and less costly to treat.
- Plan For Emergencies.The last thing you want to worry about during an emergency is wondering where your insurance card is or whether or not the hospital you’re going to is in your network of providers. Discuss an emergency plan with your family and make a list of important information you will need in an emergency. Keep your plan and list simple and handy for your children or others around you. Make sure your list includes:
1. Basic policy information such as the insurance company’s name and your policy number.
2.Names and locations of hospital(s) in your network.
3. Doctors’ offices that are open after-hours or on weekends.
4. Name and phone number of an emergency contact person who does not live with you.
