Health insurance can be cost effective if you plan to use it for major medical coverage only. Not many people can afford to be in the hospital for more than a day or two. Hospital stays end up costing 3,000 to 5,000 dollars a day depending on the tests and procedures you have done. You want your health insurance to catch the major expenses of sickness and accidents. You can start saving money by paying for the minor sniffles or colds out of your own pocket.
Here some tricks and tips to save on your health insurance policy:
1. Carry A High Deductible. The deductible is the portion of coverage you pay first. Be willing to pay out of pocket for the minor doctor visits. The high deductible will have no problem getting met when you stay in the hospital for more than a day or you have a major emergency visit.
2. Use Insurance Company that is well known and accepted by most doctors and hospitals. Most health insurance companies set up an in the network cost/benefit schedule that can reduce your treatment cost.
3. Ask for discount on premium payment options. Some companies will offer discounts if allowed to withdrawal payments from your bank account. Some discounts are given for paying in full on the insurance policy. Some offer payment option discounts by making payments with a re-occurring credit card.
4. Put off having the exam or test until after you have set up a health insurance policy and have received approval/acceptance. If you have the visit first and a diagnosis is made, most carriers will not cover any of the related illness or test. It will be considered pre-existing condition and will have to wait 12 months before coverage is allowed.
5. Shop health insurance just like you shop your automobile insurance. Don't be afraid to shop at least once a year, especially if you have not had any health changes. Insurance companies have rate changes going into effect at different times of the year.
6. Don't be afraid to have a different health insurance policy for yourself with one company and your children with a different company. Find the best rate for you or your children or spouse from the company with the best rates for each.
7. Make health insurance changes at the beginning of the year. Most health insurance policies run on a calendar year. Your annual deductible is measured from January to December.
8. Check out the Health Saving Account plans(HSA). You can save money on monthly premiums and have a tax deduction on all related health care expenses paid out of the health savings account.