Practical Ways on Reducing Your Health Insurance Costs

The global economic crisis is obviously pushing health insurance premiums to rise dramatically. How can you keep up if you are also struggling with the effects of the recession in the other aspects of your life? There are several practical way on how you can reduce your monthly health insurance costs.

First and most significant way on how you can lower your health insurance premiums is by increasing your deductibles. You will have to pay in out-of-pocket expenses with increased deductibles but you won't have to spend for health benefits that you don't really need. If you can handle additional financial risk, of say another $500, you can save 30%-40% or even more besides fencing yourself from owing high hospital bill. This goes the same with increased co-insurance amounts. Another good thing with higher deductibles is that you will get more freedom to choose network of hospitals, doctors, labs, and other health care providers for your demands of services. Also, health savings accounts often go along with high-deductible plans, allowing you to gain pretax contributions that grow and can pile up from year to year.

Second option is to bundle all of your types on insurance through the same company or the insurance agency can be significant savings. Auto, business, disability, health and long-term health care are among the health insurance plans that can be bundled. If you're in the situation of paying several types of insurance, it's in your best interest to look for every available option offered by your insurer and seize every opportunity to save money whenever possible.

Third is to consider getting health insurance plan that has a separate deductible for prescription drug coverage. There are health insurance plans covering prescription deductible. In its absence, health insurance premiums soar high. The deductible enables affordable coverage and is met by paying for the more affordable generic prescriptions regularly used, whereas, more expensive medications are covered by the insurer when necessary. Only a few bucks may be saved through this but every single cent added can make a full $100 in time.

Fourth if you have a group employer sponsored health insurance plan consider reassessing your options. You may be covered by one health insurance plan for many years already and you are quite happy with the service. In any case, it is important to reassess your needs every singly year. Having a baby, getting some major dental work or starting a family needs another plan in the coming year. Paying a higher premium on a plan that allows choosing a physician might not be necessary anymore given the situation your doctor, lab and hospital of your choice are within your network already. You don't need all the benefits coverage every month so you don't need to spend for it. You may not need immunization, maternity or orthodontics coverage in the coming year. There's the option of paying out-of-pocket for such services or switching to a plan that doesn't cover them at all.

Fifth is to make sure that you are deducting your health insurance premiums of your taxes. Insurance premiums and other ordinary medical expenses are non-deductible until exceeding 7.5% of the income. Employees of companies or self-employed policyholders, however, need not meet the threshold to get tax break.

Sixth check if your health insurance companies offers a discount if your payment automatically deducted out of your checking account. Health insurance companies often offer discount for insurance holders who automated the process for paying health insurance premium. There are two ways to automate your payment. It can automatically be withdrawn through checking account or billed to credit or debit card. To save even more or to get additional discount, pay premiums in advance whether you do it annually, semi-annually or quarterly.

Last one might be obvious one and the one that you know you have to do something about. Get your weight down, if overweight, to reduce risk of diabetes and hypertension. Quit smoking to avoid dental and lung problems. Oral health also contributes to keeping the heart healthy. If you are taking medications, do not skip doses to avoid reduced drug efficacy and actually spend more. And, of course, eat healthy. Lots of other things should worry you except health insurance payments. Why not take advantage of the practical saving tips within your reach. You are assured to get the needed support when the worse things come while actually saving some money for other expenses.