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 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.
Two Alternatives
1. Take 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 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.
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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