1. Don't pay for insurance you don't need. Picking up a package deal may seem the easy way out, and if you're part of the demographic the package is meant to fit, you'll save money. Keep in mind, though, that the insurance companies put the packages together to cover the needs of specific types of families. Why should you pay for cover for well-baby visits if you have no children? Check over the package carefully to make sure that it's all cover you really need. If not, take a look at the choice of cover options and compare the cost of just the ones that you want.
2. Choose to pay a higher excess. A higher excess will nearly always reduce the cost of your monthly premium. Check to see how the excess is tabulated by your medical insurance company, though. In some cases, you'll pay the first amount of each incident. In others, you'll pay for all medical expenses incurred up to a certain amount. In any case, there is nearly always a limit to how much you can be expected to pay in a years time.
3. Share the risk. Shared risk health insurance is cheaper than full coverage. Like choosing a higher excess, it splits the cost of your medical care between you and your insurer. Unlike higher excesses, which give a finite amount that you will have to contribute, shared risk is usually based on a percentage, between 25% and 60%. The more premium you pay, the higher percentage your medical cover will pay.
4. No claims or low claims discount. Many insurers will discount your policy if you make no claims against it, or if your claims are for minor medical procedures up to a specified cost. Generally, the discounts start at 10% and build with each succeeding year in which you make no claim against it, up to a maximum of 50% after 5-8 years without making a claim against your policy.
5. Choose a waiting period. While many people carry private health insurance specifically to get around long queues for NHS treatments, you can lower your premium by choosing a policy that offers the option of a waiting period. With this type of policy, if your wait for a medical procedure will be longer than a specified period on the NHS, the cost of it will be covered by your insurance. The cost of the policy varies with the length of waiting period that you choose.
6. Hospital Choice Many policies offer you complete freedom in choosing the hospital at which you have a procedure done. More and more often, though, you can reduce the cost of your monthly private health cover by agreeing to limit your choice of hospitals. There are a number of variations some reduce the cost if you agree not to choose a London hospital, for instance, as hospitals in city tend to be more expensive. Others have a list of hospitals which have agreed to discount lower prices to that insurer in return for a boost in business from plan members.
And of course, you should always examine your policy carefully, and periodically compare it with similar plans to be sure that you're still getting the best possible deal on your medical cover.
If you are unfamiliar with health insurance then the costs of a health insurance plan can seem to be somewhat complex and many people are surprised that, having spent what seems like a small fortune, they find themselves faced with a bill the very first time that they make a claim. Before you are landed with an enormous medical bill therefore, it is a good idea to take a moment to learn just what type of costs you should expect to incur on your health insurance policy.
The first and most obvious cost is the monthly premium or, if you so choose, the quarterly or annual premium. If you belong to a union or employer's group plan then you will usually be asked to meet only a percentage of the premium and this will normally be deducted from your pay check.
The majority of health insurance policies will also include an annual deductible which is a sum of money that you will be required to pay before your insurer starts to pay out on any claims. Thus, with a yearly deductible of $1,000 you will need to pay the first $1,000 of any medical bills each year before your insurer will begin paying out. You might be familiar with paying a deductible from your experience with motor insurance and, if this is the case, will know that the higher the deductible on your policy the lower your premiums will be. In addition, if you have a family health insurance plan then this will typically include multiple deductibles for the individual members covered by the plan.
The majority of health insurance plans will also include a co-payment which is a fixed amount of money that you will have to pay towards each medical bill. Exactly how much you will have to pay in co-payments will depend to a large extent on the type of plan you have. For example, co-payments on HMO plans are generally lower than those on indemnity plans. In addition, the co-payment can also vary between different forms of medical service and, if you are a member of an HMO plan, will usually rise if you seek treatment outside of the HMO network.
In cases where no co-payment is required you will generally find that this is replaced by co-insurance which is very similar and is a sum of money, in this case expressed as a percentage, that you will have to pay towards each medical bill. A typical co-insurance ratio is 80/20 indicating that your insurer will pay 80% of each medical bill while you pay 20%. As with co-payments, co-insurance will normally rise if, as an HMO plan member, you seek treatment outside of the HMO's network. In this case you will also find that, when a claim exceeds what the insurance company considers to be 'reasonable and customary', you might be required to meet the additional cost.
By now you will realize that comparing health insurance plans is about a great deal more than just comparing premiums. For this reason, it is critically important that you read the details of any health insurance quote most carefully and that you avoid the frequent temptation to just choose the plan with the lowest monthly premium.
If you wish to keep your costs down and are a member of an HMO plan then you should attempt to remain within the HMO's network and, if you do feel that it is necessary to go outside the HMO's network, then compare actual treatment costs to what your insurer considers 'reasonable and customary' before you undergo treatment.
You can also keep your costs under control on many plans by adjusting your deductible and by opting for higher or lower co-insurance. Exactly how this can be done is beyond the scope of this short article but is a question of balancing the various different costs involved against the probability of needing to claim against your policy.
Both Gareth Owen & Donald Saunders are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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