Tips for getting the best out of your health insurance
1. Insurance costs a lot, but having none costs a lot more
We will describe ways to save money on insurance, but skipping coverage isn't one of them. Medical bills without insurance can cause bankruptcy over night.
2. Only you are important in this process
There are many different types of health benefit plans, but you must choose one which offers you the best deal. Check out the plans available, ask all the questions that come to mind, and only then choose what’s best for you.
3. Learn about the possible benefits
Remember – cheapest isn't always the best. Ask about cover preventive care, baby care, vision or dental care. Think about your family, too.
4. Quality is better than quantity
Not every health insurance company offers services of equal quality. Not all health plans, doctors, hospitals, and other providers give the highest quality care. Try asking about examples to compare quality of service. Internet search is always an option.
5. Update your Benefit Coverage after every possible change
Every family change, such as marriage, divorce, childbirth, adoption, or the death of a spouse is a sign for you to change your health benefits. You and your family may be eligible for a special enrollment period under provisions of the Health Insurance Portability and Accountability Act (HIPAA). You don’t want to miss out on this, it can save you a lot of money!
6. Life Events Can Affect Your Health Benefits
Under a legal act known as Consolidated Omnibus Budget Reconciliation Act (COBRA), you and your family can purchase extended health coverage under your employer's plan in situations such as: losing your job, changing employers, getting a divorce, etc. This coverage doesn’t last long! In most cases it ranges from 18 to 36 months, depending on your situation. That’s why you have to be aware of these conditions, and make sure you are following the plan of your health providers. You might want to get a copy of COBRA and study it.
7. HIPAA Can Also Help If You Change Jobs
HIPAA generally limits pre-existing condition exclusions to a maximum of 12 months (18 months for late enrollees). It also requires this maximum period to be reduced by the length of time you had prior creditable coverage. You should receive a certificate documenting your prior creditable coverage from your old plan when coverage ends.
8. What to do in case of retirement?
Make sure there is no conflicting information about the benefits you will receive in retirement. Sometimes there’s nothing to be done, and you lose your retirement health insurance. In this case, consider private insurance options.
9. Tax breaks can help
Ordinarily, medical expenses are not tax deductible until they exceed 7.5 percent of your income. However, if you're self-employed, you can get a tax break without meeting this threshold.
Remember that the lowest premium isn't always the cheapest plan. What your insurance covers is much more important than how much you pay up front. On the other hand, remember that even a good coverage can have loopholes; be well-informed about possible benefits, policies for doctor visits, benefits for mental health, prescription drugs, dental care, etc.
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