Health insurance can be a very broad and confusing topic. Many people shut down over all the aspects that need to be learned. It’s important to remember that what’s relevant today may not be relevant tomorrow. You should take it upon yourself to remain educated and know all the important information about current options. This is a great place to start, and the tips here will get the ball rolling.
Think about all the costs involved in purchasing a health insurance policy. Premiums, co-pays and deductibles can be confusing to figure out. However, you must make sure that you have accurately figured the costs of all of these before making a policy purchase.
If you’ve just graduated from college and are looking to purchase health insurance for the first time, keep the following in mind. If you are employed, see what insurance options are offered through your employer. If you are under the age of 26, you can be on your parents’ insurance and you can always research personal insurance plans, as well.
Purchasing insurance on your own often results in higher policy costs compared to group plans offered through an employer. You may have no choice but to settle for a higher deductible and/or reduced coverage. Make sure you consider all your options before purchasing insurance.
Your prescription coverage should be checked annually. Sometimes health insurers change the medications they will cover, so each year when you re-enroll, review the terms carefully. If you suddenly find that your health insurance plan is not covering your ongoing medications any longer, then start your search for a new plan.
Health insurance is great for saving money on taxes! Not everyone knows that premiums are deductions. Any money you spend to cover your deductible, your prescriptions, or any visits that your insurance doesn’t cover can also be deducted from your taxable income. State and federal taxes can differ, so double check the guidelines.
When a health insurance company calls you as part of the application process, never volunteer information. You should answer the questions asked as directly as you can, but no more. If you give them more information than they have asked for, they will note it in their files and could take what they have learned to charge you more for your premiums or remove your coverage all together.
Private insurers are regulated by the local state government insurance agency, which means that insurance cannot travel with you across state lines. Depending on your plan, a trip to the ER in another state may not be covered. Because insurance providers are so picky, it is important that you find this information about before going to another state.
Make it a point to find out which prescriptions are covered by your health insurance. The list of covered prescriptions changes annually, so it is important to be certain that your medication is still covered.
If you want to get pregnant in the future, ensure your insurance covers the pregnancy costs. This is important to know because some health insurance plans cannot be used for certain aspects of pregnancy and labor.
Keep in mind that some insurance companies will add a surcharge if a spouse you include on your insurance plan has access to their own insurance through an employer. Perhaps getting two separate plans through the respective employers would be more affordable, so calculate both options.
Health Savings Accounts (HSAs) are a great idea for someone who rarely visits the doctor. All the money that is saved from paying deductibles and premiums can be added to this account and you can use this for medical expenses when they come up.
Being in a group insurance plan is much cheaper than if you were to purchase insurance by yourself. This is the reason why the rates seem lesser when you get it through your job. If you’re unemployed or self-employed, consider joining a trade union to take advantage of group health insurance rates.
Although it may seem confusing at first, you can learn all you need to know about health insurance. You just need to take a little time to educate yourself. Once you’ve educated yourself, it’ll be easier to make better decisions regarding health insurance.