Most Affordable Health Insurance May Not Be The Cheapest

by MoneyNing

Health insurance is not an item most of us add to our “find the cheapest available” list. The common scenario is like this: Get hired, receive a sheet with several health plans, ask around, pick one with very limited knowledge about the options and then just forget about it.

In fact, it’s easy to forget that we even pay for health insurance since the cost is deducted from our paycheck before we even get to see it.

Today, I’m not going to tell you about ways to lower your payment. Instead, I will tell you that raising your payment can potentially cost less. You may want to head on over to your HR department and ask more questions about your plan, because some insurance have several options that have offer different coverages. Here’s a true story about how much money my wife’s boss (let’s call him John in this article) could have saved if he took this advice.

John’s wife just delivered a baby and as we all know, hospital costs can be sky high. When John got the bill, the amount was $10,000. Luckily, he had insurance that covered 70% of it. Still, $3,000 isn’t a small chunk of change. When he called and asked why the insurance only covered 70% and not more, the agent told him that he could have increased his coverage so insurance would cover as much as 95% of the charges. 95% of $10,000 is $9,500, a difference of $2,500.

Worth a chat with your plan administrator? I’d say so. And don’t blame the administrator for not telling you everything either. You should do your own research and figure out what’s best for you.

Most of us just based our calculations with the required copay but don’t stop there. Investigate the coverages and weigh that against the different medications and care that you need. You may find that paying a high monthly payment is well worth the savings. If your company offers different types of insurances, it may even make sense to switch insurance companies. I just went to check. Our health plan only requires us to pay $250 instead of $3,000 so the different could be huge.

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{ 1 comment… read it below or add one }

cheap insurance July 6, 2009 at 10:56 am

Apart from the co pay, there are other aspects you need to pay attention to. For instance, what is the deductible you have to pay before your cover kicks in? A deductible is a particular amount you have to pay to the carrier before the cover starts. You should also consider the monthly premium and, most importantly, whether the covers are relevant to your needs. It is no use having an ‘affordable’ cover that does not pay for your medical needs when you need it.
There are other things to consider when you are looking for affordability. You should consider getting a Health Savings Account plan that will save your tax dollars. You can also consider state plans like Medicaid and Medicare. The thing is, you should consider the relevance of the cover you are getting at the price you can afford to pay.

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