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Archive for the ‘Medical Insurance’ Category

Medical insurance is an enormous expense for most people – even if they are relatively healthy. But there are ways that individuals can cut the cost of medical insurance, both directly and indirectly. Here are three ways you can cut the cost of your medical insurance.

1. Choose a plan with a higher deductible. The deductible is the amount of money you must pay out of your own funds before insurance benefits are paid out. In general, plans with higher deductibles have lower monthly premiums and vice versa. The reason for lower premiums with high deductibles is that the insured person (that’s you) pays more out of pocket and dips into the insurance benefits less over the course of a year. Not everyone has the money set aside to cover higher deductibles, but if you do, you can expect lower insurance premiums.

2. Improve your overall health and wellness. The healthier you are, the less you’ll need your insurance coverage. Furthermore, if you buy your health insurance policy as an individual (rather than through group coverage offered by many employers), good health practices lower your premiums. Quit smoking, lose excess weight, and make lifestyle changes (like investing in an ergonomic chair for your work desk and a treadmill for your home), and you’ll not only feel better, you’ll save on health care costs.

3. Consider opening a Health Savings Account (HSA). These accounts go hand-in-hand with high-deductible health insurance policies. An HSA lets you put aside money tax-free that you can use for medical expenses like deductibles and other out-of-pocket costs. Money from an HSA can be used to pay for medical insurance premiums, prescription drugs, mileage accrued for traveling to and from medical treatment facilities, and things like eyeglasses, hearing aids, and crutches.