Save Money on Health Insurance

Adapted by the Network of Care Staff

Factors that go into determining health insurance rates include the type of policy purchased (group, individual, Medicare supplement, etc.); benefit plan selected; age of the person insured; and health of the person insured.

These factors aside, there are some things you can do to reduce the cost of your health insurance:

• Use your work insurance plans. Your employer may offer group health insurance coverage as an employee benefit. Talk to your human resources manager. Group insurance plans are reasonably priced. You and your family members are often eligible regardless of medical history or current conditions. Usually, employers pay part of the bill, making group health insurance more attractive. Family coverage for your spouse and children can often be added at affordable costs.
• Don't use tobacco. Most insurance companies automatically place smokers at a higher tier, forcing them to pay higher premiums. Often, insurance companies will offer a lower rate to former smokers who don't use tobacco for 12, 24, or 36 months or more. If you are smoke-free and purchased individual health insurance while you were a smoker, find out if you are eligible for lower rates.
• Take care. Eat well, limit alcohol, work out, and watch your weight. All can directly affect your health insurance rates.
• Shop around. Cost for coverage can vary greatly from company to company. If you have a choice of plans from your employer, study each plan's benefits and features. If you are purchasing an individual plan, compare several plans from different insurance companies before making a selection. You can compare plans and view ratings of different HMOs in this section of our Web site.
• Deductibles. If you are looking into an individual plan (and not eligible for a group plan at work) consider higher deductibles ($1,000, $2,000 or even $5,000 per year) and compare those plans to the premiums for lower-deductible plans. Many of the higher deductible plans have limits for "out-of-pocket" expenses in any one calendar year, which makes them more attractive to some money-conscious buyers.
• Update your coverage as life changes occur. Adjust your health coverage as necessary immediately after marriage, the birth of a child, or when an adult child stops being a full-time student. Most group plans have a period of time in which you can add or delete family members after a "life change." Some insurance companies require immediate notification. Don't wait - your insurance company should be contacted as soon as possible whenever a life change occurs.