Some things in life are taken for granted and the privilege of having health insurance can be one of them. Employers should offer their employees some sort of benefits package as part of their overall compensation package. The employee expects this and enjoys the security of having good health insurance. Everything changes when the employee leaves the employer. Insurance decisions have to be made. No one can escape this process. The employee quickly finds that the cost of maintaining the insurance is much higher than expected and begins to scramble to find alternatives. Are there alternatives? What can be done to reduce the cost?
There has been a major shift in the thinking of insurance buyers about alternatives to lowering the cost of health insurance. Low deductibles are a thing of the past. It took a while to change the idea of having low deductibles. Low deductibles mean fewer out-of-pocket expenses. It works the opposite way in today's health insurance market. The premiums paid for lower deductibles are so high that it no longer makes sense to have them. Higher deductibles significantly reduce the premium. There are deductibles of up to $5,000 in some health insurance plans.
Two alternatives
1. Take the highest deductible you can afford. This is called self-insurance. You insure yourself for the deductible amount in exchange for a lower premium.
2. Start a health savings account. This is a savings account used only for medical expenses. This is a fantastic way to set aside money for the excess amount and additional medical expenses. The best part about it is that the health savings account is tax deductible. Consult your tax advisor or accountant on how to set up this regime.
Insurance is a great starting point for lowering your monthly bills. We hope this will help you analyze your next quote. Please refer to our recommended source for insurance quotes of all types.
