Some things in life are taken for granted and the privilege of having health insurance may be one of them. Employers have to give their employees some kind of benefit program in their overall compensation package. The employee expects it 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 from this process. The employee soon finds the cost to continue the insurance to be much more than expected and they start scrambling for alternatives. Are there alternatives? What can be done to reduce the cost?
There has been a major shift in thinking by the insurance buying public over alternatives to lowering the cost of health insurance. Low deductibles are a thing of the past. It has taken some time to change the thinking about having low deductibles. Low deductibles mean less out of the pocket expense. It works the opposite in today’s market for health insurance. The premiums paid for lower deductibles are so high that it no longer makes sense to have them. The higher deductibles reduce the premium dramatically. There are deductibles as large as $5000 in some health insurance plans.
- Take the highest deductible that you can afford. This is called a self-insuring. You are insuring yourself for the deductible amount in exchange for a lower premium.
- Start a Health Savings Account. This is a savings account that is used for medical expenses only. This is a fantastic way of putting money aside for the out of pocket deductible amount and any additional medical expense. The best part about it is that the health savings account is tax deductible. See your tax advisor or accountant on how to set up this plan.
tucson health insurance brokers is a great place to start to lower your monthly bills. We hope that this will help you analyze your next quote. Please refer to our recommended source for insurance quotes of all types.
There are many options for an individual to obtain affordable health insurance coverage. Keep in mind that there are savings in numbers; the more people in a plan, the better the savings for each member.
In some states, like Florida you may purchase group policies for a group of one. Some states allow a two-person policy to qualify for a group rate. If you are a sole proprietor and your spouse helps you with things like bookkeeping, filing or mailings, you may be able to claim them as an employee and get the group rate.
Another option for the self-employed is the National Association for the Self-Employed (NASE). NASE offers self-employed individuals the choice to deduct 100% of their medical premiums and 100% of their noninsured medical expense from state, federal and self-employment taxes through a program called 105 HFR.
If you’re not in business, don’t despair. You may be able to enjoy the lower premiums associated with group plans by joining an organization such as trade or alumni associations. For instance, as a writer, I might elect to join a group association targeted to help writers secure discounted health insurance. Groups such as ASJA American Society of Journalists and Authors.
Fitness instructors might elect to participate in the health insurance program offered through IDEA, an organization of health and fitness professionals. Pregnant women may join the American Pregnancy Association which offers both government-funded programs and discount health programs such as MaternityCard AmeriPlan.
Because association health plans are not subject to the various state regulations that group health plans are subject to, they are able to offer cheaper insurance coverage. Keep in mind, however, that an association health plan is different from a group health plan in that the association does not have to offer the same premium for each member.