Do you think that you are paying more on your health insurance policy? Are you thinking to compromise on the coverage in order to reduce the cost of the policy? Think twice before compromising on your insurance coverage. Go through this article to know how you can reduce the cost of your health insurance coverage.
- Keep a record of the dollars spent on health care – Keeping financial records is always a good habit as it gives you an idea regarding how much amount to allocate on a specific item when you’re planning a budget. Moreover, you may also qualify for a tax deduction on your medical expenses if it is more than 7.5% of your adjusted gross income. In addition to this, if you are self-employed and you yourself make your premium payments, then your insurance cost is also deductible.
- Consider COBRA after thinking carefully – As per COBRA (Consolidated Omnibus Budget Reconciliation Act), you can continue with your employer’s group insurance coverage for up to 18 months after being laid off. However, if you continue with the coverage, then you will have to pay the entire premium which might be difficult for you to make. Therefore, if you do not have kids and you don’t suffer from any chronic disease, then you can think of opting for a high-deductible health insurance plan, wherein you will have to pay out of your pocket a lump sum amount, if you fall sick and need to make a claim. So, opt for a high deductible plan if you want to lower the cost of your insurance policy but you’re capable of making the high deductible payments if required.
- You can opt for a short-term health insurance policy – Opting for a short-term health insurance policy is a good option when you are in-between jobs. Usually, the policy term of such policies is of 12-36 months and after completion of the time period, you need to renew it in order to enjoy the coverage.
- Purchase multiple policies from the same provider – By opting for multiple policies from a single provider, not only you can reduce the cost of your health insurance plan, but also you can lower the cost of your overall insurance coverage. This is because the insurance providers usually offer a lump sum discount if you purchase multiple policies (that is, health insurance, home insurance, car insurance, etc.) from the same insurance company. So, ask for a quote from an insurance company from where you’ve already purchased a policy; it is likely that you will get a discount on your existing insurance policy, too.
- Try to reduce weight is your BMI is high – Being overweight not only increases your chances of falling sick, but also it is more likely that you will pay more on your health insurance policy. This is because your risk for several diseases increases with the increase in your body weight. So, check your body weight and try to reduce it if required. Along with this, you should also know that you may have to pay increased premium if you’re a smoker. Therefore, make these simple lifestyle changes in order to enjoy a lower premium rate on your health plan.
Here are the ways to reduce the cost of your insurance policy. However, if you do not have a health insurance policy or you have a plan with a high deductible, you can explain to your doctor that you will pay the bill from your pocket directly and ask for a better rate for the treatment. More often than not, the medical providers will be willing to work with and offer you a better rate for the treatment. Ultimately, it will help you save significant amount of money.