Four money-saving health insurance tips

SALT LAKE CITY -- Health insurance plan renewals are just around the corner for many Utahns. Because of annual rate increases to help cover the costs of medical inflation, claims experience, and the insured population moving into older age brackets, health insurance premiums are becoming unbearable for many residents.

Because health insurance is growing more expensive each year, many Utahan’s are finding it harder to keep the coverage they’re accustomed to.

Here are four money-saving health insurance tips that will allow you to keep more of your money, and still leave you with quality health coverage.

Tip 1: Raise your medical deductible

Depending on your particular plan, you may simply pay a set dollar amount each time you visit the doctor’s office or get a prescription. If that's the case, raising the medical deductible might not affect you much, assuming you don’t need serious health care during the year.

Even if you are required to pay for your office visits and prescriptions in full, it may make sense to move to a plan with a higher medical deductible. Raising your deductible will lower your monthly plan cost, but usually increases your total out-of-pocket risk for the year. Make sure you understand how your coverage will change.

Tip 2: Switch doctor networks

Several Utah health insurance companies have two or more networks of doctors to choose from. Switching from one network to another doesn’t typically change your medical benefits, just the providers you can receive benefits from.

Find out if your insurance company offers a smaller network of doctors than you have now, with the same medical coverage. Simply choosing a smaller provider network can save you between 5 percent and 10 percent each month. Make sure you know whether or not your doctors accept the new coverage before making the switch.

Tip 3: Move to a catastrophic health plan

Catastrophic health plans don't normally cover common medical events, like office visits, prescriptions, or urgent care. Their purpose is to cover major medical expenses, usually after a relatively high medical deductible. The good news is that the monthly premium for these plans is so much lower than traditional plans that it's hard not to at least consider them as a solution to high health insurance costs.

If you like the idea of lower-priced catastrophic health insurance, explore qualified high deductible health plans. Qualified plans come with the ability to open and use a health savings account. An HSA is a bank account that allows you to make pre-tax deposits and then use funds in your account to pay for eligible health, dental, vision, and other expenses.

By choosing a qualified health plan and using a health savings account, you’ll be eligible to write-off most of your health expenses on your taxes and save even more.

Tip 4: Switch insurance companies

If you have insurance through your employer, find out if they offer plans from more than one insurance company. Whether you have insurance through an employer or not, explore plans in the individual/family market. Many Utahn's find a better deal in the individual/family market, even if their employer pays a substantial percentage of their monthly premium. This is largely because rates and plan eligibility in the individual/family market are based on the applicant’s health.

Before Making Changes

Before you make any changes to your plan, consult your human resources department or insurance agent. Discuss your options in detail and ask questions to make sure you understand how your new plan will differ from your current plan.

Find out if there’s a specific window of time each year in which you can make changes. Also, if you’re looking at plans in the individual/family market, ask your insurance agent about how your health history and current health conditions affect your eligibility. Doing your research in advance will ensure that you won't miss your chance to make money-saving plan changes.

Jared Balis is the owner of Utah Insurance Advisors and a licensed insurance agent who strives to help Utahan's navigate the sometimes complicated Utah insurance market.

On the web @ www.UtahInsurance.org

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