Ways To Save Money With The High Cost Of Healthcare
- Author: Michael Bordonada
- Posted: 2024-02-05
One such way you might be able to save money is by getting discounts on copays, deductibles, coinsurance and out-of-pocket expenses. You might also be able to find ways to save on your overall health insurance premiums. However, it should be kept in mind that these savings will only work out for those that are going to be reaching their plan's out-of-pocket maximums each year.
Choose Plans With Lower Out-Of-Pocket Limits
Health insurance companies will pay all of your medical expenses after you have reached your maximum limit for the year. All you have to pay after you reach that limit is your monthly premiums. You must also continue to pay for services which are not covered in your plan such as elective surgeries and adult dental services. If you change your plan to one that has a lower maximum out-of-pocket limit, you will save more money knowing that you will be reaching that limit before the end of the year. In most cases, the cost to change you plan will offset all of the savings you will receive.
How To Find Plans With Lower Limits
When comparing different health insurance plans, look for one with a higher deductible and coinsurance, but with a lower overall limit on the out-of-pocket expenses. Most people do not reach their maximum limits which means that the insurance company will spend less money on those policy holders. Because of this, they are able to offer plans with lower premiums. If you know ahead of time that you will be reaching the limit for out-of-pocket expenses, the higher coinsurance and deductibles will not increase your yearly costs and usually will save you hundreds to thousands of dollars on medical services by the end of the year.
What matters the most overall is how much you will be paying for your out-of-pocket exposure. Since you know ahead of time you will be going over your limit, it won't matter how you get to that limit between the costs of deductibles, copays and coinsurance. The plan design you pick won't really matter beyond how much you will have to pay fully on your own to reach your maximum limit.
Choose Plans With Same Out-Of-Pocket Costs And Lower Premium
Another way to shop for health insurance policies in a way to possibly save money is to find a plan that has the same out-of-pocket limits as your current plan but with lower monthly premiums. Even though you will still pay the same amount for your expenses out-of-pocket, you will be able to save some money each month on your premiums. Doing this can give you a little more wiggle room each month with your budget.
Buyer Beware
If you have any current medical conditions that require ongoing care, you will need to pay more attention to the specifics of a policy you are interested in. Check each plan to ensure they have a provider network that includes all of your current doctors and pharmacies. Each plan may cover different prescription drugs. If you enroll in a plan which doesn't include your current prescriptions, you might have to change them, your treatments or pay your whole out-of-pocket maximum. It is essential to investigate new plans thoroughly before signing up.
Affordable Care Act
When the Affordable Care Act was created, it started new health insurance subsidies to help decrease costs of out-of-pocket limits for low income people. Eligible people will have to meet certain criteria in order to take advantage of this help.
Before Switching Plans
You should be sure you fully understand any of the caveats before making the switch to a new health insurance plan. Make preparations to have enough money set aside earlier in the year to cover any and all costs associated with the new plan's copays, deductibles and coinsurance costs. If you plan to stay with your current doctors, be sure they are in-network with the new plan as well before you switch over.