Health Insurance Basics
Insurance is a major expense but the cost of not having adequate health coverage can be devastating to you and your family. There are ways to save money when it comes to health insurance, but eliminating coverage should never be an option. Minor illnesses and injuries can be a significant setback a major illness and force you and your family into bankruptcy.
You should always take advantage of coverage offered by your employer. Group insurance typically provides a reduced rate over other insurance coverage options. If your employer offers to subsidize or offset some of the expense it equals an even better deal for you more often than not. You will find that even in the best of health circumstances you will not be likely to find a better deal on your own than you will find through the coverage your company offers.
Comparison shopping is the best way to go if you are purchasing your own coverage. The fact is that there is no industry standard when it comes to health insurance and you will see major variances from policy to policy. You should also be careful to not only to compare costs but also to examine the benefits that are actually covered and other pertinent information such as deductibles and limits on coverage as well.
The lowest priced plan is not always the cheapest. The actual benefits your insurance provides are equally important to the cost of the plan. The best plan for your budget is going to be the one that offers the benefits that are most likely to be used by you and your family for the lowest price.
Look out for loopholes. Even the best policies don't include everything or require rider policies in order to cover them. Be sure that you know what is and isn't covered by the policy you are considering before you buy and find yourself in need of services that are not covered. Most health insurance will cover hospital stays and doctor visits but there are many who require additional or even separate coverage for mental health services, prescriptions, or dental care.
The freedom to choose often costs more. Many policies keep costs down by providing a list of health care providers from which you can choose. The ability to go outside a network is often an expensive option indeed. The more freedom of choice you demand the more you are likely to be charged for that coverage in either co-pay fees or monthly premiums. You should also be aware that you can and should find out about the network before you sign up. There are many agencies that compile public data and information about not only doctors but also health plans and hospitals.
You do not have to lose your health care coverage simply because you lose your job. You will most likely have to pay the full premium for that coverage rather than the employer subsidized price you were paying while employed, which means the costs of doing so will be significant.
You will need to sort and sift through information to figure out which plan would be best for your family. This is especially true if you are married and you and your spouse receive health care coverage through your employer. Sometimes it is best for each spouse to go with their companies offered plan while placing the children on one or the other. Only you can make the decision as to which plan you believe will be best for your family.
There are tax breaks that can ease the burden of medical expenses. In most situations medical expenses (and this includes insurance premiums) do not qualify as a tax deduction unless they exceed 7.5% of your income. There are exceptions to this requirement however for those that are self-employed or use flexible spending accounts through their employers.
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