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Buying Medical Insurance

How to Save Money When Purchasing a Policy

Feb 5, 2009 Scott Rupp

Buying health insurance is expensive, and having a policy is important. To help save money, follow these simple suggestions.

Typically, buying health insurance is extremely expensive, and premium rates increase each year, sometimes with double-digit jumps. Since coverage is so important, most people are forced to hand over their hard-earned money to protect against emergency.

However, there are several ways people can limit and control the costs associated with purchasing healthcare.

Pay Premiums Annually

Save money by paying yearly premiums in one lump sum. If deciding to take this route, work with a broker to determine the best plans available and ask him to calculate the savings associated with using this method. Incentives may include a service fee reduction and potential eligibility of a pre-payment discount.

Choose a Higher Deductible Plan

Enjoy good health? Rarely visit the doctor? If so, that is good for your health and your wallet. Higher deductible plans offer less coverage and many times higher co-pay requirements, but the coverage is still solid, in place for emergencies, and offering protection at greatly reduced premium prices.

Never Buy Policies with Pre-existing Limitations

Always avoid policies with any pre-existing limitations. These are plans that offer coverage for basic medical necessities, however will not cover a purchaser’s current medical issues such as heart condition, diabetes, cancer treatment or many other conditions.

If a plan is not available without a pre-existing condition, try to purchase the highest-quality plan with the shortest waiting period.

Stay Away From Supplemental Insurance

In most cases, supplemental insurance is unnecessary. Think accidental death and dismemberment insurance is going to pay off after a car crash? That is not always the case. Simply put, that is why auto insurance is purchased. Moreover, many of the features of a supplemental plan are found in a good medical plan.

Make sure the limits for hospitalization and emergency treatments on the medical plan are high enough -- $2 million is the industry standard today – and if it is not enough, keep shopping.

Enroll in a Group Plan

One of the best ways to say money on health insurance is to enroll in a group plan. Individual health plans are expensive because the cost of the claims can only be absorbed by one person. In a group plan, everyone in the pool covers the cost and that makes the premiums cheaper for the individual.

Not part of a group? Join one. Become a member of an association that offers medical coverage as part of the membership. Find small-business associations that offer the benefits, or other related groups. The group rate savings will be well worth the cost of the annual membership of the club.

For more information, visit How To Buy Health Insurance.

The copyright of the article Buying Medical Insurance in General Medicine is owned by Scott Rupp. Permission to republish Buying Medical Insurance in print or online must be granted by the author in writing.