Creative Solutions to the High Cost of Medical Insurance
At the very least, you should have some sort of coverage that protects you against major illnesses and catastrophic events. There are other options, but you will have to put the time into educating yourself in to make the decision that is right for you and your family.
So lets take a look at some of those options. Traditional medical insurance covers things like accidents, illness and injuries, which may require surgery, hospital care and medical attention. Some policies cover things like physical therapy, care at home and psychological services. Some policies even cover alternative medical care such as acupuncture.
As far as medical insurance is concerned, you should take a look at several companies and their benefits and costs before making a decision. Here are a couple of options people dont usually think about. If you can afford the up-front costs of medical care, indemnity plans will reimburse you for medical expenses and they cant tell you what medical professionals you can see. There is a deductible and the reimbursement is based on a percentage of the expense you incur.
Another option is managed health care plans, which are the norm these days. The cost of medical care is managed by the insurer. It is their job to negotiate rates with different medical care entities. HMOs (Health Maintenance Organizations) and PPOs (Preferred provider Organizations) are managed health care providers. The up side is that their premiums are less expensive. The down side is that you are restricted by the insurer to a list of physicians, service providers and locations you can use to get medical attention. A deductible of some sort is also mandatory in most cases.
Some people who like to make their own choices prefer to us a health care spending account. Funds can be placed in a non-taxable account to cover deductibles, vision care and other medical expenses not covered by standard insurance policies. It is best to spend a little time each year estimating how much you need to place into this account and then budgeting for monthly deposits to ensure the money is securely put aside.
Heres a checklist for determining what medical insurance you need:
Evaluate the overall health of you and your family
Look at how much you spend on medical services in a year
Look at a few different insurance companies
Understand what each provider offers completely (even the fine print)
After you have done your comparison of carriers and their offerings, compare the annual cost of premiums to your annual costs for services
Determine the type and level of medical insurance you need
