Getting The Most From Your Health Insurance Policy
Getting The Most From Your Health Insurance Policy
With health insurance costs on the rise, many consumers are thankful
to have any type of health insurance, let alone a policy that will save
them money. It is important for consumers to understand how their policy
works - only then will they be able to get the most out of their
insurance plan. Here is a look at some key features of many health
insurance plans and how consumers can stretch their policy to meet their
needs.
DeductibleIf you have a health insurance policy that has a deductible, take heed. Before your insurance policy will pay for any medical charges, you will be required to pay out of pocket for the amount of your deductible.
Some exceptions may be made to this rule such as routine office visits,
but typically, your policy will not pay much at all until you have
satisfied your deductible. If your company offers multiple insurance
plans, opt for the plan with the lowest deductible.
Coinsurance and out of Pocket MaximumAnother
expense you will want to pay special attention to is Coinsurance. Once
your deductible is met, your plan will pay a percentage of your eligible
health expenses. The amount remaining after your insurance company pays is called coinsurance.
Coinsurance is your responsibility to pay and it can add up quickly if
you are not careful. To protect your wallet, consumers will want to make
sure that there is an out-of-pocket maximum clause listed in their
policy. The clause puts a cap on how much money the consumer is required
to pay each calendar year.
Individual Vs. Group PoliciesWhen it comes to
insurance policies, the more the merrier; the more people who are
enrolled under a group, the better price you are likely to receive.
While individual policies are available, they usually carry a hefty
price tag. If at all possible, enroll in a group health insurance plan in order to save a considerable amount of money.
Why Premium Rates MatterMany consumers will opt for a plan with a low premium
only to be stunned by a massive deductible and staggering out-of-pocket
costs. When it comes to insurance, the higher your premium is, the less
your cost is likely to be throughout the year. A low-priced premium may seem like the best bet at first, but once the medical bills start coming in, you may rethink your decision.
A Smart InvestmentIf you are faced with a health insurance plan that has a high deductible or coinsurance ratio, it might be a good idea to enroll in a flexible spending account.
These plans allow you to put away money on a pre-tax basis to put
towards your medical expenses. Rather than paying for your deductible or
copay, you can file a claim with your flexible spending account instead.
The Bottom LineThe bottom line is simple. Before
you sign on the dotted line, make sure you understand your insurance
policy. Factors such as the deductible, coinsurance and copay can drive
up your out of pocket costs significantly. Research your policy
thoroughly and look for the option that will save you the most money in
the long run, rather than simply picking the plan with the cheapest
premium. Get the most from your insurance policy by having a full
understanding of what your plan offers.
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