Do not approach health insurance with fear. It is true the field is complex and your options are many, but the more you learn, the safer you will feel. Health insurance is similar to healthcare itself. An ounce of prevention is worth a pound of cure. By making smart choices when you select health insurance, you can avoid difficulties in the future.
When you choose your provider for health insurance, understand what your coverage entails. Choosing a policy that covers what you need is the best way to get your money’s worth.
Sit down and create a budget when deciding on which health insurance plan to choose. All the different parts to a policy like co-pays, premiums and deductibles can be confusing, so make sure that you understand it all before you purchase anything.
Reevaluate your insurance plan during your open enrollment period to make sure you are getting the best coverage that meets your needs. As your medical needs and family dynamics change, your health insurance should be adjusted to meet those needs. Open enrollment also gives you the opportunity for making changes to other plans, such as dental or vision.
Individual policies tend to cost quite a bit more than a group plan, so be sure that you plan out your finances accordingly. You may find yourself needing to plan for a higher deductible or reduced coverage to bring your policy cost down. Compare the premiums, deductibles and coverages of multiple providers.
Having health insurance can lead to tax deductions! Although many people aren’t aware of the fact, health insurance premiums are 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.
Despite the kind of coverage you’ve got, you can save money by getting generic drugs. Only in rare cases will you not be able to receive generics, and multiple studies show that there is no difference in the drugs except for their brand name.
Choose the health insurance policy which fits your needs to a “T”. Select between a HMO, POS and PPO company. Each one has disparate benefits that you will need to consider before purchasing a policy. Be sure that you can continue seeing your current physician.
Be sure to regularly check to see which prescriptions are covered by your health insurance policy. The list changes yearly, so check when you re-enroll so that you won’t be surprised when filling a prescription.
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. Sometimes, it is less expensive for you and your spouse to have individual insurance through your own employers. Do the math on both scenarios to be sure.
Don’t wait until you’re sick to find out what your health insurance covers. The smart way to search for health insurance is to arm yourself with knowledge about how it works, what you should look for, and what you should avoid. It’s also important to be cognizant of all the options available. Having substandard health insurance is never a good idea, but with the right knowledge, you can remedy that whenever you choose.