The most affordable way to get a health insurance policy is through your employer. However, if you are self-employed and you wish to buy insurance on your own, you need to be smarter to reduce your costs. Consider the following advice before choosing your personal health insurance:
Get a Health Savings Account. You can raise your deductible to lower your premium cost, and take out-of-pocket medical expenses from your HSA. Contributions to HSA can be tax-free or tax-deductible.
The remaining funds that you haven’t spent on medical expenses are carried over to the next year and you can use it even when you change employers. After your 65th year, you can withdraw funds from your HSA and spend it as you like.
Enjoy your COBRA privilege. COBRA stands for Consolidated Omnibus Budget Reconciliation Act of 1985 which gives all workers the privilege to enjoy continuous coverage from their employer-based insurance policy even after they have left the job.
However, bear in mind that there is a limit to this provision. Generally, you can enjoy insurance continuity for up to a certain period only. Thus, in-between jobs, it is wise to get yourself a personal medical insurance from a private insurer before your insurance continuity ends.
Check the insurance company’s reputation. You can check the background of a potential insurance provider by visiting the National Committee for Quality Assurance. NCQA is a non-profit organization that provides a comprehensive review based upon an insurance company’s performance.
Consider acquiring a long-term health insurance. Long term plans can include major medical expenses, regular check-ups and prescriptions. On the other hand, short term plans only offer limited coverage for a limited time (6 to 12 months). If you compare the costs of a long term and short-term insurance, you can save more money if you go with a long term policy.
Take advantage of free health care services. You can usually get free reproductive planning or low-cost mammograms and Pap Smear Tests from your local health center. These are government provisions that you should not overlook.
Understand your coverage. Private health insurance providers offer different coverages for each plan. Be sure that you have carefully read your policy before signing up. Pay special attention to exclusions and disclosures. Familiarize yourself with the specific treatments and services that your plan covers.
