George S. May Business Blog

4 ways to save money on health care

In tough economic times, every penny counts. Here are some ways to save money on your health insurance plan:

1. Lower Contributions/Higher Co-pay and Deductible: In my opinion this is most important. At first look, we may think that choosing the option where we give the least money up front is best. However, should something drastic happen, it is very likely that under a plan like this (low contribution, high deductible, low coinsurance percentage) your costs at the end of the year will be much higher than what your contribution would have been under a plan the opposite. Especially if you have young children, as you will be much more likely to have a lot of doctor visits. Cheaper plans generally won’t cover you for more than the price of two ER visits.

2. Have a Flexible Spending Account: Plan well and the savings will come rolling in. Remember though, spend all of it or it is the same as throwing money down the drain. And keep your receipts! Many companies require you provide receipts when you send in your audit letter. If you don’t have them, you will end up footing the bill.

3. Don’t over-insure yourself: Almost all company sponsored plans will offer some sort of free Life Insurance as well as Accidental Death & Personal Loss. If you are young and healthy or have no dependents then the free insurance should meet your needs.

4. Take advantage of any free money – A lot have companies now ask their employees to fill out a questionnaire in regards to their health. Employees can answer questions in regards to their weight, cholesterol, exercise, etc. in return for discounted premiums or even cash. Do it. Don’t worry these questionnaires will rarely affect your premium.

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