Live Healthy, Save On Insurance

We all share a love-hate relationship with many things in life. Health insurance is one such thing. While we love to have health insurance, we hate to pay the premium for it. More so in today’s difficult financial times when wages are stagnant but premiums are skyrocketing! Unfortunately, there isn’t much you can do to control things here, but you can take steps to live healthy which will save you valuable health insurance dollars in the future.

Things to Know About Health Insurance

Why Healthy Living

All of us can benefit from gaining knowledge about how to live healthy. Most of us take our health for granted. Being healthy now, doesn’t ensure that’ll you remain so in the next 2-5 years. Often times, we neglect our health which leads to mounting medical and hospital bills. Taking a loan to pay off these bills adds more pressure on your finances, thus becoming a vicious stressful circle.

Gather Info on Health Insurance

While having health insurance takes care of unexpected medical bills, you’re better off striking a balance between taking care of your health and being prepared for medical emergencies. So, it’s best to get as much information as you can on health insurance, the various plans, expenses and formalities involved etc. that best suit you and your family. Start online. There is plenty of information available over the Internet. It’s important to gather as much info as you can on health insurance since you’re the one that will be paying for it. The more you know, the more you can save on your premium.

Know the Types of Health Insurance Plans

Typically, there are two types of health insurance plans, which rate over others because of their benefits. These two are: indemnity insurance plan and managed health care plan.

• Indemnity insurance — the other name for which is “fee-for-service.” It gives the insured party more flexibility and freedom than managed health care. More services = more money. Luckily for you, you get to choose your own doctor, hospital, or other medical facilities. As long as you stay within the limits of the insurance contract, you are covered, albeit not at 100%. You’ll also have to pay an annual deductible amount (few hundred dollars.) Indemnity insurance requires that you pay 20% of the bill, referred to as the ‘co-payment,’ unless your specific insurance company charges a higher amount. The insurer’s 80% share is based on the regular and customary fee charged for service in your area of residence as compared to the actual expense incurred. It covers only accidents and sickness. Preventive care like birth control, flu shots etc aren’t covered. Payment for prescription medication or psychotherapy may be possible dependable on your insurance policy type.

• Managed care plan: — it is the exact opposite of the indemnity coverage. While smaller deductibles are part of a health maintenance organization (HMO), sometimes there are no deductibles at all. Co-payments are usually small fixed amounts, while coverage includes preventative care, medication, and mental health treatments. But, you can only choose doctors, hospitals, and other medical providers that are on board with your chosen HMO. The medical services you can benefit from will also be determined by your plan. If you try to breach the contract between you and your HMO, you will be liable to pay from your pocket!!

Due to the fact that many Americans don’t like the restrictions that come with managed care, insurance companies are now offering ‘HYBRID PLANS’ that offer all the features of HMOs as well as some features offered by indemnity insurance. Some of these features include point-of-service plan (POS) that help you lower the costs and save money by using services of a specified network of medical professionals. If you go outside this network, you’ll be required to pay a higher deductible and co-payments.

Having grasped the basics of health insurance, you should now be able to make a more informed choice.

How Good Health Leads to Saving on Health Insurance Costs

One of the best ways to save on health insurance is by staying healthy. The state of your health is directly proportional to your policy’s rates. Smoking is considered the biggest evil by insurance companies. Quitting smoking will guarantee you a lower rate (applicable if you have quit smoking for over 2 years.) Of course, if you are young and healthy, without a history of any previous health conditions, you should get decent rates.

There are several benefits to living a fulfilling and ailment free life and saving on health insurance is just one of them. So start living healthy today!

April 29, 2009, Posted by Rainy Day Mitch