Strategies for Saving Money on Health Insurance

With overall health care costs on the rise, finding affordable medical insurance is a priority for most people. Even those who are young and healthy have a difficult time when it comes to buying insurance. The good news is that there are many ways to receive a discount and save money on health coverage. Here are some strategies that will help you get lower rates:

Use the Web

Using the free resources available on the Internet is an excellent way to get health insurance quotes and compare offers from industry-leading companies. The best is that you only need to complete a brief form in order to receive quotes from different insurers. The whole process takes a few minutes, so you will save time and money when shopping for health insurance.

Choose a Family Policy

Married people are more likely to find a reasonably-priced policy than those who are singles. Insurance providers usually offer discounts for buying two or more policies with the same company. Switching to your spouse’s plan may help you save hundreds of dollars a year. However, it is necessary that you do proper research before buying double coverage. In some states, it may be more affordable to get separate plans for you and your spouse. Rates may also differ from one insurance provider to another.

Consider Catastrophic Coverage

Another way to save money on health insurance is to opt for catastrophic coverage. A catastrophic insurance policy is suitable for healthy individuals who don’t need medical care on a constant basis. This type of coverage comes with a very high deductible that can reach $2,500. Unlike indemnity health insurance or managed health care plans, catastrophic coverage does not cover routine check ups, immunizations or maternity care. As the name suggests, this policy only offers protection against a catastrophe.

Use Available Tax Breaks

Individuals who are self-employed can deduct 100% of their health insurance premiums. However, medical expenses have to exceed 7.5% of your adjusted gross income so that you receive tax benefits. If you are permanently disabled, you may apply for federal or state-subsidized insurance plans. There are many programs specifically designed for those with a low income or extremely high medical expenses. Most states have a high-risk pool offering health coverage to low-income individuals. You may also cut costs by going to subsidized local clinics for medications and vaccinations.

There are many other ways to lower health insurance costs. Individuals who pay a year’s health insurance premium in advance qualify for substantial discounts. Joining various groups and organizations can help you save money. You may also consider a Health Savings Account (HSA) in order to spend less money on medical coverage.

Before you start shopping for medical insurance, take the time to evaluate your needs. As long as you know your options, you will be able to find a plan that fits your budget. Try to determine how long will you need health insurance and how much can you afford to pay every month. If you have pre-existing conditions, then you will get higher rates. Be sure to research your options in order to make an informed decision.