Tips for Saving Money on Your Health Insurance

One of the biggest costs to many household budgets on a monthly basis is health insurance. Health insurance premiums continue to rise, even if you use your insurance sparingly. But there are ways that you can save money on your health insurance. Consider these tips for getting a lower insurance premium:

1. Consider your coverage needs. Many people just automatically renew their policies each year, without stopping to check whether or not their coverage is updated. Carefully look at your health insurance plan. Do you have coverage you don't need? One of the biggest offenders is maternity insurance. If you have taken steps to surgically ensure that you don't have children, or if you have reached menopause, there is no reason to continue carrying maternity insurance. Other plans include alternative medicine. If you know you won't be using these treatments, or if you use them infrequently enough to pay cash, get rid of that coverage.

2. Adjust your deductible. I like to keep an emergency fund that has enough in it to cover my deductible, which is $1,500. Your deductible is how much you pay out of pocket for medical expenses (this doesn't include co-pays). If you have a higher deductible, your health insurance premium will be lower. Few of us really end up with such problems that we will need our insurance. It's usually there as a safety net for unexpected health problems.

3. Consider paying cash. Many doctors and specialists now offer cash discounts if you pay for your office visit when you come in. This is because it is becoming increasingly difficult and expensive to deal with insurance companies. Find out what kind of cash discount is offered. If you can afford to pay for occasional visits and routine lab work, consider going that route and maintaining health insurance coverage for the big things. This helps because part of the formula for determining premiums is how often you use your health insurance. If you pay cash, you aren't using insurance. Your premium will still go up every year, but it won't go up as much. Use a Health Savings Account in a complementary manner to further boost the cost-efficiency of your health care.