Lower Health Insurance Premiums To Fit Into Your Budget
If you are currently one of the 50 million Americans who don’t have health insurance
through their employer and can’t seem to afford it on your own, you’re probably looking for ways to lower the cost of health insurance premiums so that you can afford them! There are many options and features across numerous health insurance providers, but here are 8 tips to help you lower health insurance premiums to fit into your budget:
- Raise the deductible. When you get a health insurance policy quote, it’s possible that the quotes are at lower deductibles. If you raise the deductible (the amount you pay out of pocket annually before your medical insurance will kick in and start to cover your expenses), you pay less per year for the coverage. Try obtaining quotes with various deductible amounts to see if you could more easily afford a health insurance policy with a higher deductible.
- Start a health savings account. You can save money on a pre-tax basis into special medical savings accounts that can be used to pay for medical expenses. You can use the funds in a health savings account to pay for an annual medical insurance policy, as well as medical expenses not covered by the insurance plan and as an added bonus, your annual tax bill will be lower.
- Consider major medical insurance coverage. Not everyone is aware that there are two primary types of health insurance coverage options – one that covers the standard visits to the doctors and prescriptions; and one that covers surgeries or procedures you must have due to accidents or emergencies. If you choose to obtain only major medical insurance coverage, your premiums will be lower than if you’re looking for major medical as well as standard coverage, and since the cost of major medical procedures are costly, it may help to at least have insurance coverage for these instances.
- Keep an eye on your credit score. Believe it or not, your credit score can play a role in the price you pay for health insurance. Pay your bills on time, reduce your debt utilization, and make sure there are no errors on your credit report that are adversely affecting your score.
- Throw out the smokes. Smoking is a habit that is costing you a fortune when it comes to health insurance. Because smoking is related to a number of illnesses and diseases, smoking puts you in a higher risk pool to insure, therefore making the price you pay for insurance higher than someone who doesn’t smoke. Quit smoking and the rates you pay for insurance will drop, plus you’ll save the money you were paying on cigarettes.
- Pay the annual premium all at once. If you can afford it, paying the annual premium for a health insurance policy will typically cost less than if you were to pay the same policy premium on a monthly basis.