Health Insurance reducing premiums using supplemental insurance coverage is a different approach than your parents may have used. Insurance premiums have increased forcing people to accept higher deductibles than they would be used to with a large group insurance policy. When you look at ways to lower your individual health insurance premiums you have 4 methods to do so, Increase Deductible, Reduce Coinsurance (100/0, 90/10, 80/20, 70/30, 60/40, or 50/50) , Increase the Prescription Deductible, or Change the Number of Office Visit Copay’s (Unlimited, 2-6 visits or none). All post reform plans will cover your annual wellness at no cost – this will cover all the government required preventative tests. So these are the areas that we can use to change the premium. There is no one plan that can meets every specific situation.
Moving the deductible up can feel more uncomfortable for someone who has a lower deductible. If the premiums are forcing you to consider dropping insurance coverage, it is better to increase your deductible and add some supplemental coverages for Accidents and Critical Illnesses to reduce the financial risk of the deductible and coinsurance. The most risky thing you could consider is not having health insurance coverage, if you really need help diagnosing a condition or situation, without the insurance card, no service in many places. With the supplemental policies that cover accidents, they can offer coverage up to $10,000 per accident with a deductible of $0-$500 per accident for as little at $24/mo for an individual. This can protect 50% of the reason you may visit a hospital and be forced to pay out of pocket. It is such a relief when you are going to the ER for a broken are or some other accident knowing the event will cost you only $0-$500 depending on the coverage you select. You would always show your health ID card, and file a claim with the accident company. Many companies will pay the bill directly or pay you. You should walk out paying only the deductible of the accident plan and defer billing for the rest of the bill through the insurance company. It is a smart approach to the being forced to higher deductibles. These accident plans can work with Individual and Group Health Plans to protect you and your family.
On the illness side, I have not found anything to cover across the board illnesses like the accident plan. I did find a way to reduce the illness exposure by coverage for Critical Illnesses. These plans pay a lump sum for invasive cancer, heart attack, stroke, major burns. They have lower payouts for other critical illnesses, you will need to review the coverage to know exactly what the plan will cover. This can reduce you financial exposure for Critical Illnesses with a lump sum payouts the amount of coverage you can match your deductible and coinsurance or event go higher some plans offer simplified issue up to $50,000. I sometimes use the larger amounts to provide a cushion to cover expenses while your recovering from the critical illness. These plans rates vary by age and face amount.
We would love to share with you some options in each of these categories to help you see a complete health insurance package that can offer you piece of mind for protecting your family while keeping premiums affordable with all three policies. Give us a call for any questions or assistance.