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Health insurance Tips
Buying and maintaining affordable health insurance
can seem like a daunting proposition. With so many options to choose
from and countless figures associated with each policy, it can sometimes
seem as though you need an M.D. simply to make sense of it all.
Thankfully there are some basic tips you can use for guidance along the
way.
1. Know your health. Buying health insurance is confusing enough without
having to wonder what those physicals will find. If you haven't been to
a clinic for a checkup in the last several years, you may want to get a
detailed overview before you begin shopping. Often just by getting your
blood chemistry and a few other key indicators, you can save yourself
considerable time down the road.
2. If you have a pre-existing medical condition such as diabetes or
hypertension, you may have trouble getting affordable health insurance.
Do not give up, however – these days a number of boutique insurance
companies specialize in insuring people with certain disorders. Even if
you believe you will never be able to find annual fees that suit your
budget, a little research is bound to discover at least one or two
companies who offer a higher standard of care and support. Needless to
say, you want to avoid the major insurance companies for the same
reason.
3. Ask your existing doctors and specialists whether they belong to any
group plans such as HMOs or PPOs. You may not have anyone in your
Rolodex if you have avoided medical care during a period of
unemployment, but it is always wise to look ahead and anticipate the
people you expect to visit. This includes psychiatrists, chiropractors
and countless other subspecialties, so make a list of your ideal
caregivers. Even if you cannot think of anyone offhand, most experts
recommend calling a local treatment center and seeing what kind of
insurance they offer the best rates with.
4. Look for group plans, even if you're between jobs. Too many people
assume that if they have lost their jobs, few options exist for
affordable health care. Not so – today a growing stable of trade groups,
guilds and unions have sprung up to help people who may be out of work
or self-employed. It's not unusual for major insurance companies to
offer outstanding rates to group plans such as these, so you may save
thousands each year just by joining up. The last thing you want is to
pay out of pocket just because you freelance, so look for like-minded
people in your area to see what's possible.
5. Another good option if you have recently terminated at another job is
to take advantage of the Consolidated Omnibus Budget Reconciliation Act,
or COBRA. This legislation stipulates that employers must provide you
with supplemental health insurance for up to a year after you leave the
job – not a long term plan, perhaps, but a welcome buffer if you do not
relish the thought of spending weeks without a safety net. Most
employers will extend COBRA benefits automatically, though some may
require proof of employment and recent health records. Be prepared to
produce all this information if you want to avoid lag times.
6. Decide whether you want to go with a Preferred Provider Organization
(PPO) or a Health Maintenance Organization (HMO). Each offers different
pros and cons, but the difference boils down to a simple question of
access versus cost. PPOs are popular because they allow you to seek care
outside your original health network, albeit it at an increased
deductible and copay. HMOs, on the other hand, only cover caregivers
within the network – but they may offer significant savings if you don't
foresee the need to travel outside your plan for treatment.
7. Shop around! Health insurance companies are notorious for the widely
divergent algorithms they use to determine your premiums. If you are
unhappy with the prices at one, be sure to collect several more
estimates before you commit to any plan. It's not unusual for two
companies with the same data and case history to vary as much as 50
percent from one another, so you owe it to yourself to get a boarder
overview. Don't just limit yourself to major providers either – a number
of low-volume insurance companies offer special deals that may benefit
people in your neighborhood or profession.
8. Be sure and check the copays on any medications you are already
taking. Too many people forget this step, only to find themselves
astonished by their first trip to the pharmacy. You may also want to
look into the difference in cost for brand-name versus generic drugs –
sometimes you can find a steep discount by switching to a medication
only one provider covers. When in doubt, ask a customer service
professional about your precise medication and dosage, as you want to
get a specific number nailed down before you sign.
9. Save by combining health care policies with family members. It is a
well-known fact that married couples enjoy less expensive health care
premiums than their unmarried counterparts, but you may be able to save
further by putting the whole family under a single umbrella plan.
Spouses and children help distribute the risk for insurance carriers,
giving them greater incentive to match or beat the other estimates you
have seen. You may also be able to combine health insurance with life
insurance to create an overarching combined policy – again, the premiums
here will inevitably drop as you fold more coverages in.
10. Take care of yourself. This is perhaps self-evident, but it remains
of paramount importance to individuals who see themselves switching
carriers sometime in the future. Try quitting smoking, losing weight,
increasing your exercise and otherwise taking daily steps to improve
your health. It is a simple fact of the insurance business that private
companies work for profit – if you can minimize the risk they take in
covering you, you can expect to pay far less money over the course of
your lifetime. |
