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With Obamacare on the chopping block and the Republicans’ new healthcare plan under debate, many Americans are unsure of what their health insurance may look like in 2018. Regardless of what happens to the exchange or the individual mandate, though, there are some pretty basic tips for keeping your health insurance costs low.
What steps can you take to decrease your health insurance costs? These tricks will work whether you’re shopping on the current healthcare exchange, looking at plans on a new exchange next year, or choosing between employer plans.
Bump up that deductible
There’s a reason high-deductible health insurance plans are becoming more popular and prevalent: they can actually be cheaper. Sure, it looks like a lot when you see that you could pay $5,000+ for non-premium healthcare costs in a year. But most people, especially healthy individuals, don’t hit that deductible unless an unexpected health emergency occurs.
As with home and auto insurance, when it comes to health insurance, your monthly premiums go down as your deductible goes up. Choosing a plan with a higher deductible will cut your monthly premiums down.
Basically, you’re taking something of a gamble. By choosing a higher deductible, you’re risking that you’ll pay more in the event of an unexpected health situation or one that requires a high level of care. In exchange, you’re paying less each month for the life of the insurance policy.
This can seem like a risky gamble, but if you do the math, high-deductible plans will often take less money out of your pocket even if you max them out!
Let’s say you opt for a plan with a $300 per month premium and a $6,800 deductible. That’s a really high deductible! But if you don’t have any health events for the year, you’re only out $3,600, give or take, in premium payments. If you have a health disaster and pay your out-of-pocket maximum, you’ll pay a total of $10,400.
Compare that to a $730 per month premium on a plan with a $1,000 deductible. You’ll pay at least $8,760 in premiums alone, even if you have no health events for the year. Even after you hit your deductible, you’ll still have to pay co-insurance for care received. So, a true health disaster could still land you at your out-of-pocket maximum, which could have you paying $15,000+ in healthcare costs for the year.
The bottom line: in a year without major health events, choosing a higher deductible plan is the easiest way to save on your healthcare costs. And even if you do have a major health event, the total cost of a high-deductible plan could still potentially be lower.
Understand your policy
One of the best ways to overspend on healthcare is to misunderstand your policy, or not to read it at all. For instance, many policies these days favor primary care doctor visits over visits to ambulatory care clinics. And nearly all policies charge a hefty co-pay for emergency room visits. If your policy is written this way, it will be much cheaper to make an appointment with your primary…