Save money on health insurance

How you can save on health insurance
The annual premium that a health insurer charges an employer for a health plan covering a family of four averaged $12,700 in 2008, and workers are now paying $1,600 more in premiums annually for family coverage than they did in 1999, according to the National Coalition on Health Care.

But there are some things you can do to save money, while getting the most comprehensive coverage you need:

If your employer offers health insurance, take it.
Group coverage is often a better deal than private insurance. If you have access to employer-subsidized health insurance, it may be a good idea to take advantage of it. But before you do, read on.

Shop around before you sign anything.
While many group policies may offer better coverage and cost savings, it’s always wise to shop around, depending on your individual circumstances. For example, a healthy 30-year-old female could pay as little as $40 a month with a private policy. However, if you have a pre-existing condition, you may end up paying thousands more through a private policy than a group policy. Consider premium and deductible costs for your particular situation.

Assess family coverage options.
If you are married, take a look at the plans your employer offers as well as the plans your spouse’s employer offers. This is especially essential if you have children. Does it make more sense to have everyone covered under one insurance plan, or to split the coverage?

Review your coverage annually.
Health insurance rates change often. Review your coverage annually to ensure that it is the most competitive plan on the market, and that it sufficiently covers the needs of you and your family.

Get healthy.
Get on a fitness and prevention plan. If you’re overweight, get your weight down to reduce the risk of diabetes. Diet and exercise will go a long way to help you save on your medical and health care costs.

Things to consider & questions to ask when choosing a health plan
In a WellPoint Institute of Health Care Knowledge study, “Choosing a Health Plan: What Should Consumers Look For?,” more than 100,000 respondents were surveyed on the most important factors in choosing a health plan. Based on these factors, the institute recommends a series of questions to ask when choosing a health care plan, including:

• Am I satisfied with my current choice of networks and doctors?
• Are my current doctors covered by this health plan?
• What is my household’s current and anticipated health care service usage, what are the kinds of things we will need?
• What are my out-of-pocket expenses and monthly premium costs? Does it make sense for me to pay a higher premium for lower out-of-pocket costs?
• Prescriptions are one of the most utilized benefits. What coverage is provided by the plans I am evaluating? Are my current prescriptions covered, and at what level?
• How much will it cost me if an emergency situation occurs?

“It is so important to look at all the options available,” says Cheryl Leamon, director of corporate communications for WellPoint, Inc. “Today’s consumers are in a better position than ever before to make more informed choices about which health plan is best for them, based on their individual needs.”

What to do if you lose your job
In the event that you lose your job, state and federal laws protect you from losing your health coverage. COBRA provides certain former employees, retirees, spouses and dependent children temporary health coverage at group rates.

You may also be eligible for a premium reduction under the American Recovery and Reinvestment Act of 2009, which is part of the president’s stimulus package. If the involuntary termination occurred between Sept. 1, 2008 and Dec. 31, 2009, you could be eligible to pay a reduced premium amount that is 35 percent of the premium costs for your COBRA coverage for up to nine months.

Additionally, if you were offered COBRA continuation coverage as a result of an involuntary termination of employment during that time period and you either declined to take COBRA coverage at the time, or you elected COBRA and later discontinued it, you may have another opportunity to elect COBRA coverage at a reduced premium.*

The U.S. Department of Labor says you should seriously consider COBRA if any of the following apply to you:

• want continual, comprehensive and guaranteed coverage at a higher cost
• have a history of health problems
• need expensive medications
• have been declined for private insurance recently
• are pregnant or planning to conceive
• have a new job and your employer does not offer a health plan

For more information, call 1-866-444-3272 or visit www.dol.gov/COBRA.

Invest in yourself with a Health Savings Account
A Health Savings Account (HSA) is an alternative to traditional health insurance; it offers a different way for you to pay for your health care, which includes dental and vision care, as well as qualified medical expenses for your spouse and children. With an HSA, you can pay for current health care expenses and save for future qualified medical and retiree health expenses on a tax-free basis.

While HSAs are not for everyone, there are several advantages. With an HSA, you can:

• deduct 100 percent of your HSA contributions from your taxable income
• have the money in your HSA accrue interest and/or gains on a tax-free basis, in stocks, bonds, mutual funds, and certificates of deposit
• avoid penalties or taxes when you use your HSA to pay for qualified medical expenses
• have a high-deductible HSA-eligible health insurance plan that typically has a lower premium than a plan with a lower deductible

You must be covered by a High Deductible Health Plan (HDHP) in order to take advantage of HSAs. HDHPs generally cost less than traditional health coverage plans, so the money that you save on insurance can be therefore put into your HSA. Check with your health care administrator for further details.

Manage your health care, manage your future
“It is hard work researching health plans to find one that best fits your needs,” Leamon reminds us. “You have to consider a plethora of things: the choice of networks and doctors; the affordability plan values; the quality of service for each plan. But our health is the most important thing we have—we need to safeguard it. We should all spend some time to understand how prevent illness, and to protect ourselves with optimal health care.”

* Source: U.S. Department of Labor