Alternative Low Cost Health Insurance – Staying On Top Of It

Alternative Low Cost Health Insurance - Staying On Top Of It

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 as part of 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 of continuing the insurance to be much higher 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 way people think about having low deductibles. Low deductibles mean lower out-of-pocket expenses. In today’s health insurance market, the opposite is true. 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.

Two Alternatives

1. Choose the highest deductible that you can afford. This is called self-insuring. You are insuring yourself for the deductible amount in exchange for a lower premium.

2. 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 expenses. The best part is that the contributions to the health savings account are tax deductible. See your tax advisor or accountant for instructions on how to set up this plan.

Insurance 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.

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