Smart Saving Tips Cut Your Health Insurance Costs

It’s no secret that health insurance costs are a big concern for millions of individuals and families across the nation. Health-care costs seem to rise more and more every year. This leaves many people to wonder if they will be able to get the care that they need despite all the money that they are spending on health insurance.

Smart Saving Tips Cut Your Health Insurance CostsYou need to know how to cut health insurance costs without ending up with a plan that is useless. The following five tips can help you to cut health insurance costs without relying on an ineffective, cheap health insurance plan...

Pick a plan that’s right for you:

There are several different types of health insurance plans available. Understanding those plans is the first step towards picking the right one and learning to cut health insurance costs. Typical choices include HMO, POS, and PPO plans. An HMO (health maintenance organization) allows you to pick doctors from a selected list that is within the plan’s network. You cannot go outside of this network and still receive your healthcare coverage. HMO plans are great for individuals and families that are in good health and don’t need a lot of coverage.

PPO (preferred provider organization) plans also cover physicians who are considered to be "out of network". PPO plans are ideal for those who do have specific medical conditions that need the attention of specialists. Finally, POS (point of service) plans allow you to see any physician that you want to see. If you want flexibility in your health insurance plan, that a POS may be the right choice for you.

Look for tax deductions

Did you know that some medical expenses might earn you tax deductions? Medical costs that go over 7.5 percent of your adjusted gross income may be eligible for tax deductions. So keep track of all of your yearly medical costs. Include things such as transportation costs to and from hospitals and doctors’ offices and projects in the home that are done for medical purposes. You’ll find that your medical costs really do add up quickly and that you may be able to get back some of the money that you’ve spent.

Take advantage of your FSA

If your employer offers an FSA (flexible spending account) taking advantage of it can help you cut health insurance costs. With an FSA, you can choose to save money before taxes are taken out to pay your medical expenses. The money goes straight from your check (pretax) into an account. You can then use that account to pay for things such as health insurance deductibles, flu shots, eyeglasses, prescription drugs and a whole range of other medical costs. Just don’t forget that you have to spend all of the money that you put in by a certain time period (usually just over a year) or you can’t use the money at all.

Look into getting an HSA

An HSA (health savings account) is way to cut health insurance costs that more and more people have started to use. With an HSA, you receive a health insurance plan with a low premium and a high deductible for hospital bills and an untaxed savings account to use for things such as visits to your primary care physician. You contribute money into the account, and unlike a FSA, the money you contribute can be carried over to the next year instead of becoming forfeit. If you are self-employed, you will be able to cut costs on health insurance when you write off HSA contributions as expenses for your business.

Make sure your claims are paid

No one wants to have to deal with the hassle of fighting an unpaid insurance claim that they feel should have been covered. In fact, it can be so much trouble that a lot of people don’t even bother to fight, even when they know they are in the right. There are a few things that you can do to avoid the situation altogether.

First, try to use only providers that are within your network. The more you stick to the precise terms of your health insurance plan, the more likely you are to have your claim paid. Second, don’t be afraid to ask your insurer outright what if you have a question about your coverage. Third, make sure that you review any and all invoices that you are sent to make sure that you really did receive all of the treatment and tests that you are being charged for. Also, review them next to your insurance policy and look for inconsistencies.

Many people think that the secret to cutting insurance costs is to just cut the level of services that you can receive. But cheaper health insurance doesn’t necessarily mean that you are saving money in the long run. It is much wiser for you to learn how to take full advantage of a good solid health insurance plan. That way, you’ll have the coverage that you need and won’t have to fork out big bucks every time you have an unexpected medical expense.