We all know it's a good idea to have it, just in case. After all, it only takes one accident or unexpected serious illness to ring up hospital bills that could leave you with nothing. But it still hurts to see those premium dollars disappear from your bank account month after month -- money you could be using to invest, save for a down payment on a new home, or just put aside for a rainy day. Especially for young adults who are just getting started on their own, it's easy to find better uses for that money.Even though you can't eliminate insurance costs, you can still make them as small as possible. By keeping the responsibility for paying some of your own health costs, you can save hundreds on health insurance premiums.
High-deductible plans....
When it comes to setting policy limits and deductibles, health insurance isn't quite as flexible as other types of insurance. With car insurance, for example, you can usually pick from several options for every type of coverage available. You can choose the minimum coverage required by law, or you can buy higher policy limits that will protect you from really big claims. You can have the insurance company cover everything but the first $100 from an accident, or you can agree to pay the first $250, $500, or $1,000 -- the higher the amount you'll pay in an accident, the lower your premiums will be.
Health insurance usually comes in just a few prepackaged bundles, especially if you have coverage through your employer. But increasingly, insurance companies are offering high-deductible health plans (HDHPs) to consumers, and employers are starting to include HDHPs in their health plans. HDHPs can give healthy people big savings over more comprehensive health insurance.
Health insurance usually comes in just a few prepackaged bundles, especially if you have coverage through your employer. But increasingly, insurance companies are offering high-deductible health plans (HDHPs) to consumers, and employers are starting to include HDHPs in their health plans. HDHPs can give healthy people big savings over more comprehensive health insurance.
Stay well and save ...
The lower costs that HDHPs offer are substantial, sometimes cutting premiums by more than half from what more comprehensive plans charge. If you're buying insurance on your own, that savings goes straight to your pocket. With an employer plan, however, you'll have to look closely to see what effect choosing an HDHP will have on your take-home pay. If your employer subsidizes full coverage, you may not get much personal benefit from choosing an HDHP -- although your employer might.
Having an HDHP also makes you eligible for a health savings account, which provides tax breaks that can put even more money in your wallet. You can open an HSA at a variety of banks and even some brokerage firms. But you don't have to open a health savings account to use an HDHP.
Having an HDHP also makes you eligible for a health savings account, which provides tax breaks that can put even more money in your wallet. You can open an HSA at a variety of banks and even some brokerage firms. But you don't have to open a health savings account to use an HDHP.
... but get sick and pay
The catch with HDHPs is that you're responsible for paying that high deductible amount, usually off the top. So if you have to go to the doctor one or two times, you'll probably have to pick up the whole tab yourself. Some HDHPs will cover preventive care, such as annual physicals, but many don't. For major health problems, the insurance will often kick in with full coverage after you've paid the entire deductible amount.
So it's important not to view the lower premiums you'll pay with an HDHP as free spending money. Instead, consider setting it aside in an emergency fund, so you won't be in a bind if this turns out to be the one year you actually have to see a doctor.
So it's important not to view the lower premiums you'll pay with an HDHP as free spending money. Instead, consider setting it aside in an emergency fund, so you won't be in a bind if this turns out to be the one year you actually have to see a doctor.
Stay insured.....
An HDHP can be a good option for someone who's just starting out as a financially independent young adult. And it's a heck of a lot better than going uninsured -- both for you and your family.
Since there seems to be a lot of active and retired military here, I thought this may be of interest and possible benefit to many. We are using the medical services of U.S. FAMILY HEALTH PLAN.
“The US Family Health Plan is a specially legislated TRICARE option within the military health system. US Family Health Plan offers TRICARE Prime, a managed care program that provides comprehensive coverage at the lowest cost to members of the three TRICARE options.”
The facilities are usually based in high populated areas near military facilities, so you backwoods people may not have the opportunity to join. But, for those who live in the area of one of their medical offices, you will benefit from decent health services at a very affordable rate. The clinic style facility allows you to see the same primary physician of choice and if you have special needs, you are referred to outside facilities for a specialist or other services, such as scanning, etc.. (It’s similar to any MD’s office where they only do initial consultations and blood drawing and send you elsewhere for X-rays, CAT Scans, etc.)
We have used this service for three years now and they rate as high as the services we used to get via Aetna or Blue Sheild/Blue Cross. There is a difference as that I did have to change physicians and go to the specified facility, but even with special needs I have received top quality care and prompt appointments. The main difference is the cost. We used to pay around $250./month for health insurance, now we pay under $500./YEAR. That’s for two adults. There out minor out of pocket expenses such as co-payments ($12.00-$20.00 visit, depending on service, and Rx’s $3.00/generic; $25.00/name brand.) For the difference of the monthly/yearly costs, I can deal with these changes.
Since there seems to be a lot of active and retired military here, I thought this may be of interest and possible benefit to many. We are using the medical services of U.S. FAMILY HEALTH PLAN.
“The US Family Health Plan is a specially legislated TRICARE option within the military health system. US Family Health Plan offers TRICARE Prime, a managed care program that provides comprehensive coverage at the lowest cost to members of the three TRICARE options.”
The facilities are usually based in high populated areas near military facilities, so you backwoods people may not have the opportunity to join. But, for those who live in the area of one of their medical offices, you will benefit from decent health services at a very affordable rate. The clinic style facility allows you to see the same primary physician of choice and if you have special needs, you are referred to outside facilities for a specialist or other services, such as scanning, etc.. (It’s similar to any MD’s office where they only do initial consultations and blood drawing and send you elsewhere for X-rays, CAT Scans, etc.)
We have used this service for three years now and they rate as high as the services we used to get via Aetna or Blue Sheild/Blue Cross. There is a difference as that I did have to change physicians and go to the specified facility, but even with special needs I have received top quality care and prompt appointments. The main difference is the cost. We used to pay around $250./month for health insurance, now we pay under $500./YEAR. That’s for two adults. There out minor out of pocket expenses such as co-payments ($12.00-$20.00 visit, depending on service, and Rx’s $3.00/generic; $25.00/name brand.) For the difference of the monthly/yearly costs, I can deal with these changes.
Needless to say, this plan has saved us hundreds (thousands) of dollars each year and I hope this information helps someone out there who has served our country and now needs a break, and well deserved.
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