YOU ASK:

How to lower health insurance premiums?

WE ANSWER:

There may be things about health insurance that you cannot control, such as your health standing or your age. However, there still are several things you can do to lower your health insurance premiums. Here are some of them:

  • Raise deductibles. The higher your deductibles, the lower your premiums will get. However, you should only raise your deductibles to the level that you can afford. Remember that you will have to cover this deductible when you make a claim. That means that the insurance company will pay only after this deductible is covered.
  • Adjust the co-insurance ratio. This is another amount that you will have to cover. This is after the deductible. After you have settled the deductible, you will still pay a certain percent of the medical expenses that exceed the deductible. For example, if your deductible is $2,000, your co-insurance is 20% and your claim is worth $5,000, you will first settle the first $2,000, then you'll have to still pay the $600 co-insurance. As with your deductible, the higher your share of the co-insurance, the lower your premium.
  • Shop and compare. Make price comparisons between the different plans so that you can get the lowest premiums.
  • Have a good driving record. Do you know that your driving record is also part of the underwriting process? You see, when you have a clean driving record, it means you are a lower risk and will thus be charged with lower premiums.
  • Live a healthy lifestyle. Avoid risky hobbies. Your lifestyle is also taken into consideration when you are being rated for insurance. When you are healthy, your risk will also be lower.
  • You can also consider getting a Health Savings Account. An HSA is an account where you can save up tax-free dollars. The HSA is paired with a high deductible health plan (which charges considerably lower premiums).
  • Study your family's coverage. Compare you and your wife's plans to see if it is more cost-effective to assign children to one spouse's plan or to divide the children into the two plans.
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