Health Insurance Premiums - Smart Ways To Cut Down Your Costs

By Chimezirim Chinecherem Odimba

If you must get big discounts, then you must NOT forget certain things. Following are a few of such things...

1. If you want to save in health insurance then you have a good opportunity in a Flexible Spending Account. You can put away tax-free dollars to cater for your health needs. Any amount unused could be carried over into the next year (still tax free). This gives you a tax free way of building large reserves of funds for your health needs.

2. If you opt to pay your premiums monthly, you will pay higher rates. Although this alternative is always more convenient, it costs more for some reasons.

There are transaction charges that are incurred when processing a check. While a yearly payment attracts just one check and therefore one transaction per year, monthly payments attract twelve. This implies that you'll pay transaction charges 12 times.

There are also administrative costs to your insurer that result just from taking monthly payments. A good example of such is the expense associated with mailing payment notices. These and more are then added to your rate thereby making it higher than if you paid every year.

3. The use of unapproved drugs will increase your costs. Misusing drugs also will make you spend more in health insurance. In addition, stay away from self-medication for both its dire consequences and the fact that it will make you pay much higher rates.

4. Group plans are more affordable than individual plans. So for individuals who have the opportunity to use a group plan, it gives you an opportunity of paying lower rates than otherwise. The higher your risk the more you'll save if you use a group plan.

A group plan will save you a lot if you have a health condition that makes individual health insurance either too expensive or almost impossible to get. A group plan is a good way of lowering your premium without bringing down the quality of coverage you get.

5. It will cost you far less and lower your costs if you buy your prescriptions over the internet. You can also get cheaper prices if you buy by phone. Companies who sell through the internet have lower overheads than brick and mortar businesses and these suggest that they can and (do sell) at cheaper prices.

But to ensure you are buying from a good company, check. It's very easy to do this by making use of a resource like BBB. While we want to lower our health care costs we also need to ensure that we safeguard our health and our lives.

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Chimezirim Odimba writes on insurance.