Expensive Health Insurance Blunders
Health insurance is complex and bad or incorrect information can be costly
. Three crucial areas where people are making unnecessary and costly choices. People will often fail to do the things that will keep them healthy and thereby limit their health insurance options. They will buy overpriced health insurance contracts that have more benefits, but whose extra benefits do not justify the added costs. They will purchase limited benefit policies that do not cover enough in catastrophic situations.Being able to switch from one medical insurance policy to another is a key to keeping your premiums down. If you have medical issues, you may not be able to qualify for a good rate. Although some healthcare issues are beyond our control, many are not. If the only lifestyle change you are willing to make to prevent or manage a healthcare issue is to add a few seconds for prescription-taking into your schedule, you might not be doing all that you can.
It may seem unfair but an insurance carrier can review your medical records. They will determine your likelihood of costing them more in claims than other people cost your age and gender. This is the same logic they use to raise the rate on a car insurance policy for a person who has speeding tickets. For the insurance carrier, it is not a moral issue. It is a money issue. If you have speeding tickets, you are more likely to get into an accident than someone who has a clean driving record. People with previously spotless driving records get into major accidents all the time, but those who speed habitually get into more such accidents. Over Paying for Insurance
Many of us are math-challenged. This causes a many to spend more for insurance than they should. They will often pay more for a health policy with a low or zero deductible than they should. A 0 deductible health insurance policy may be better than a plan with a high deductible. However, the question to ask is whether the difference in premiums is justified by the difference in benefits.
In order to determine if you are overpaying for a low deductible plan, determine the yearly difference in the premiums and compare them with the difference in the deductibles and other cost shares.
Here is an example: Policy A has an annual $1,000 deductible and costs $300 a month. B has a $2500 deductible and costs $100 each month. If you choose, policy a you will spend $3,600 a year in premiums s the expense you might have before you meet your annual $1,000 deductible. This means that your potential costs range between $3,600 per year and $4,600 per year with policy A. If you choose policy B, you will spend $1,200 a year in premiums plus the cost of expenses you might have before you meet your $2,500 deductible. This means that your potential cost for health insurance range between $1,200 per year and $3,700 per year with policy A.
Which is the better deal? Unless you believe that you will have high expenses each year, policy B is the winner. You stand to lose only $200 a year, but can gain as much as $2400.under Buying
Many people focus on the cost of visits to the doctor and the cost of relatively inexpensive routine healthcare maintenance expenses when they are comparing health care health insurance contracts. There are health insurance contracts that will cover those smaller expenses well, but that will do a poor job of covering major expenses. Make sure that you purchase a medical insurance plan with a generous lifetime cap, coverage for prescriptions, doctors and hospitals and no annual limit on the major benefits. The lifetime limit should be generous not only because things cost so much today, but also because things can cost so much tomorrow. If you plan on keeping your plan for ten years a million dollar benefit limit may be woefully inadequate before the ten years is up.
There isn't much an individual can do to keep the cost of healthcare down for our country, but you can have lowered the insurance costs your family. Do your best to maintain or improve your health status. This has other benefits besides those involving insurance costs. Make sure that you bring out your calculator when you are comparing health insurance contracts. Stay away from health insurance plans with low lifetime maximum benefit limitations and caps on the major insurance benefits.
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