Know Your Money Saving Options on Healthcare
Jun 14
One of the biggest letdowns in the world of health insurance was the Affordable Care Act which was enacted in 2010. Being a questionable legacy of the Obama administration, the ACA failed miserably at providing affordable health insurance to the masses. Since a new administration took office, the individual mandate has been repealed (yet still in force in 2018) and in 2019 the business mandates will be repealed as well.
Nevertheless, the high cost of insurance is still a very big problem and one which is keeping tens of millions of Americans uninsured and unprepared financially for any medical emergency. However, the good news is that there are ways to cut back on the cost of healthcare. Here are a few of your options.
Find Health Insurance Online
Many consumers are now doing much of their shopping online because merchants and other service providers can offer greatly reduced prices. Consider for just a moment that these providers can cut back on their expenditures across the board and pass the savings onto you. They can save on anything from personnel to the cost of running a brick-and-mortar establishment and anything in between. If you aren’t sure which online Health Insurance Innovations are reputable and right for you, check them out on the NASDAQ or even with the Better Business Bureau. Find a reputable provider and you can often save up to 30% (or more!) of what other companies charge.
Make Contributions to an HSA
If you have a high deductible on your insurance policy, a health savings account (HSA) can come in quite handy. The beauty of this kind of savings account is that the money you put into savings in your HSA have been funded pre-tax deductions on your payroll. Not only do you save money and perhaps earn interest on your savings, but you won’t be paying taxes on it while it grows. Deductions from your account may be taxable under some circumstances, so check out the HSA you choose to save with prior to joining.
When selecting an insurance plan to pair with your HSA, it’s important to understand how managed care contracting can affect your options. This process, where insurance companies negotiate with healthcare providers to establish networks and set rates, may significantly impact your out-of-pocket costs and the flexibility of your HSA funds. For instance, using in-network providers typically results in lower costs, allowing your HSA savings to stretch further.
Remember, even though you’re no longer mandated by law to purchase health insurance, foregoing coverage altogether isn’t wise. While it may be costly to get the coverage you need, being uninsured could lead to denied services or astronomical bills. The right insurance plan can work in tandem with your HSA to provide comprehensive protection. Choose an option that best suits your finances and healthcare needs, considering both the insurance network and your HSA strategy. This approach will help you be prepared for any healthcare eventuality that life might throw in your direction, while maximizing the benefits of your health savings account.
Understand Your Rights
Here is something which many consumers aren’t aware of. Just because your employer offers you health insurance and is still mandated to do so, at least for the remainder of 2018, it doesn’t mean that you need to purchase your coverage through them. Even so, be careful before opting out because you will almost always get a better price on a group healthcare insurance plan than when buying individually. The one exception would be the affordable online Health Insurance Innovations option as mentioned above. Shopping online also offers group rates because it is open to millions of people, not just those who work for a company. So far, that seems to be your best alternative.
