Many people have a hard time understanding exactly how health insurance works. It doesn’t have to be, though. Understanding your health insurance options will be easier if you approach it in an organized way. Use this knowledge to your advantage.
If you are a recent college graduate and you are looking into health insurance, there are a couple of options for you to consider. If you are employed by a large enough business, you are probably eligible for company provided coverage. If you are younger than 26, your parents can still have you under their plan, or you can look up individual options too.
Remember to get vision insurance to help you deal with existing and potential eye problems. Some of your visits and eye care purchases, such as glasses or contacts, will be covered. This kind of coverage is not mandatory, and those that purchase it, but do not need it, may wind up spending more money than those who don’t get it.
Catastrophic Coverage
You can lower your premiums by choosing a catastrophic coverage option instead of a comprehensive one. Catastrophic coverage is for emergency visits and hospitalization, while comprehensive coverage help pay the cost of doctors visits, prescriptions and mental health care.
Check the state and federal tax guidelines to determine which medical costs can be deducted on your tax return. The premiums that you pay for your health insurance are actually tax deductible! 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. Federal taxes are not the same as state taxes, so you should look into the difference.
Do not offer up information if someone from a health insurance agency is discussing the application process. Simply respond to whatever questions they ask. If you give them additional information they did not ask for, they will record it, and could find a way to raise your rates or possibly deny you for coverage.
Regardless of your prescription insurance plan, you can save more money at the pharmacy by requesting generic medications. There are only a few drugs that you can not get in a generic form, and there have been many studies that have shown there is not any difference between these and a name brand pill.
Make sure that your insurance plan covers all aspects of pregnancy and childbirth before getting pregnant. Some heath insurance policies do not cover some or all of pregnancy-related services.
Though you may not be aware of it, adding your spouse onto your own health insurance policy at work can trigger fees if similar coverage is available at their own place of employment. Perhaps getting two separate plans through the respective employers would be more affordable, so calculate both options.
It is cheaper to be on a group plan when you have insurance. Your rate will be lower if you are in a plan at work rather than an individual plan on your own. The best way to get cheaper insurance for yourself is to find a trade organization to join that offers health insurance to its members.
Don’t neglect reviewing the bills you receive. You may be surprised about how much you’re paying out-of-pocket despite having health insurance coverage. Prescriptions can be a big contributor to high out-of-pocket costs. Some physicians just write out prescriptions without taking into account the generic version related to the medication. If you can use different pharmacies, do some research to find out which one has the best prices. Different pharmacies have varying prices on generic medications.
When shopping for new insurance, make sure you have a record of all your medical expenses. The out of pocket expenses can be considerable over the year, and you need to take them all into account for you and your dependents.
As you have read, the general consensus regarding health insurance is that it is hard to understand. If you take the time to learn more, you will be able to make the right decisions. Just by reading the above article, you have accomplished the first step in finding out more about health insurance.
