Tips to Help Consumers Lower their Health Insurance
Premiums
Health insurance – whether provided by an employer or purchased
by individuals – is expensive. Following are some ways consumers
can control their costs.
- Married couples in situations where both spouses are offered
health insurance through their jobs should compare the coverage
and costs (premiums, co-pays and deductibles) to determine which
policy is best for the family.
- Always stay in-network when possible, making sure to get referrals
and pre-certifications as required by the plan.
- Keep all receipts for medical services, whether in- or out-of-network,
in the event you exceed your deductible, you may qualify to take
a tax deduction for out-of-pocket medical bills.
- Consider opening a Flexible Spending Account (FSA), if your
employer offers one, which allows you to set aside pre-tax dollars
for out-of-pocket medical expenses.
Health Insurance Tips for Different Life Stages
The NAIC’s consumer Web site, Insure U online, explains the
different types of health insurance and gives focused tips to consumers
based on their likely needs in different life stages. For example:
- Young singles who may not yet have a full-time job that offers
health benefits should be aware that in a growing number of states
(e.g., New Jersey, Colorado, New Mexico, Utah, Massachusetts and
potentially others), single adult dependents may be able to continue
to get health coverage for an extended period (ranging from 25
to 30 years old) under their parents’ health insurance policies
even if they are no longer full time students. They should check
with their state insurance department. In addition, some colleges
also offer graduates interim coverage for a limited time. Another
option: young people who can’t afford the health insurance
offered by their employers should consider a lower cost, high-deductible
medical plan to cover catastrophic medical costs.
- Young couples expecting a child should make sure they register
their newborn with their health insurance provider within the
deadline required. They should also review their health plan to
see whether prenatal and neo-natal screening and tests, prenatal
vitamins, delivery costs (Cesarean and traditional) and what level
of pediatric care is covered.
- Established families with children should consider Flexible
Spending Accounts if available to help pay for common childhood
medical problems such as allergy tests, braces, replacements for
lost eyeglasses, retainers and the like, which are often not covered
by basic health insurance. All workers who lose or change jobs
should know their rights to continue their health coverage under
COBRA for up to 18 months.
- Empty Nesters/Seniors who are under 65 and no longer employed,
but whose COBRA benefits have run out should research high deductible
medical plans. At this life stage, consumers may want to evaluate
whether they still need disability insurance. Many will want to
decide whether long-term care insurance makes sense for them (e.g.,
will they be able to afford the premiums into old age, when most
need to use such coverage).
"News Release - Nation's Insurance Commissioners Help Consumers
Cope with Cost, Confusion regarding Health Insurance." June
19, 2006, (27 Jan. 2007)
NAIC-National Association of Insurance Commissioners
http://www.naic.org/
<http://www.naic.org/Releases/2006_docs/consumer_health_insurance.htm>
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