Affordable health insurance options are available, but you must shop around and pick the insurance plan that provides only the coverage you need with the financial factors that fit your circumstances. Factors to consider include the monthly premium amount, the plan's deductible and any co-payment amounts. Also check the plan's limitations; for example, some plans limit the total amount they will pay for each accident or illness, or over your lifetime. If you have a serious health condition, you might need a plan with high limits.
Lower Premiums
Investopedia states that a premium is a payment required by an insurance company to provide coverage for a period of time. Most health insurance premiums are due on a monthly basis and the premium amount reflects the risk that the insurance company will have to pay for your medical coverage. Generally, if you have existing medical conditions or are older, your premiums will be higher.
If you expect to use your insurance infrequently, you can lower your monthly premiums by accepting a higher deductible amount. A deductible is the amount the insurance company requires that you pay toward your health care costs before they begin to pay.
Lower Deductibles
People who expect to use their insurance benefits frequently, such as families or those who lead active lifestyles, can choose an insurance plan with a low deductible. While your monthly premiums will be higher, your total out-of-pocket costs could be lower because the insurance company will begin paying your medical costs sooner.
Lower Co-Payments
Kiplinger notes that an affordable health care option is to choose a plan with higher premiums and a lower co-payment amount. Most insurance companies require that you pay a portion of your health care costs, even after your deductible is met. For example, you might be required to pay $10 toward each doctor's office visit, or $5 for each generic prescription. If you use your insurance benefits frequently, lower co-payments could save you money overall.
Employer Sponsored Plans
According to the U.S. Department of Health and Human Services, choosing to enroll in a health insurance plan offered by your employer can save you money. Most employers pay all or a portion of the plan's premiums, which means that you must meet only the plan's deductible and any co-insurance payments. For most people with access to an employer sponsored plan, enrolling provides affordable health insurance.
Plan Options
Many health care insurance providers offer plans with multiple options. For example, you can choose plans that come with or without maternity coverage. If you do not plan to have children, your health insurance can be more affordable without maternity coverage. Other options include major medical coverage only, so you bear the cost of all preventative examinations and routine visits to the doctor's office. Vision and dental care are also offered as options; however, if you need this care infrequently, it might be less expensive to pay for the visits out-of-pocket rather than purchase insurance for them.
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