5 Basic Facts About Arranging Health Insurance Policies In A Poor Economy

If you are looking to buy health insurance in today’s bad economy then here are 5 five things which you must look out for.

1. Will your plan provide you with cover both at work and away from your job?

A lot of health insurance policies carry specific exclusion clauses that eliminate your benefits for anything that could have been covered under Workers Compensation or a similar law. Now stop and read that last sentence over again and pay particular attention to the phrase ‘could have been covered’. That’s correct, most self employed individuals and even a few small business owners don’t carry Workers Compensation on themselves.

There are specific insurance plans that provide cover on and off the job, as long as you are not required by law to have Workers Compensation coverage.

2. Are you writing off your health insurance premiums?

Home based business owners, independent contractors (1099’s), professionals and a lot of self employed individuals do not take advantage of the tax laws available to them.

Many individuals who are paying all of their own costs are permitted to deduct their monthly insurance premiums. Just that alone can lower your out-of-pocket costs by up to 40%. Ask your accounting professional whether you are eligible or take a look at the IRS website to get more information.

3. Look closely at any policy’s internal limits

All insurance policies have some form of internal controls to determine how much the company will pay out for a particular procedure or service. There are two basic methods:

A. Scheduled Benefits

A lot of policies, some of which are specifically marketed to indpendent and self employed individuals, have a detailed schedule of what the insurer will pay per visit to the doctor, hospital stay or even what payment limits are imposed for testing in any 24 hour period. This structure is usually seen in ‘Indemnity plans’. If you are offered one of these policies make sure that you see the schedule of benefits in writing. It is vital that you understand these type of limits up front because once they have been reached the company will not pay any expenses over the stated amount.

B. Usual and Customary Expenses

‘Usual and Customary’ refers to the payment for a visit to the doctor’s office, hospital stay or procedure which is based on what the majority of physicians and facilities charge for that particular service in that geographical or comparable area. ‘Usual and Customary’ charges also represnt the maximum coverage on most major medical policies.

4. Don’t forget that you are able to shop around

If you are reading this you are probably shopping for a health policy.

Every day people shop for everything from groceries to a new house and while shopping price, value, personal needs and general marketplace conditions are evaluated by the buyer. Bearing this in mind, it is very disconcerting that most people never bother to ask what a test, procedure or even doctor visit will cost. In today’s ever changing insurance market it is going to become increasingly important for these questions to be asked. Inquiring about price will help you to get the most from your policy and reduce your out-of-pocket expenses.

5. Pay attention to networks and discounts

Almost all insurance firms work closely with medical networks in order to obtain discounted rates. In broad strokes, networks are made up of of medical professionals and facilities who contract to charge discounted rates for services provided. In most cases the network is one of the defining properties of your program. Discounts will normally vary from 10% to 60% or more.

Medical network discounts vary but to ensure that you minimize your out-of-pocket expenses, it is imperative that you preview the network’s list of doctors and facilities before committing yourself to a plan. This is not only so that you can ensure that your local hospital and doctors are included in the network, but also to see what your options would be if you were to need a specialist.

Pay attention to these tips and you will find cheap health insurance that provides you with the level of cover you need.