You can get lower private health insurance premiums a number of ways, one which is choosing a higher deductible. A very low percentage of the population has private health insurance. One of the reasons for this is because it is so expensive! The best way to get insurance is through your employer so you can take advantage of group health insurance.
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For some people, obtaining health insurance through their workplace is not an option. In these situations, private health insurance is usually the only option. Along with being extremely confusing and difficult to comprehend, individual insurance is very expensive for what you get. Not only is it important to understand what your policy says, you should also know ways to lower your high health insurance cost.
Who has private health insurance?
Besides being expensive, another reason there are not that many people who have private health insurance is because most individuals have a group health insurance plan through their employer. If that is an option for you, or you can be insured through your spouse’s place of employment, that is usually a better way to go for your insurance needs. Private health insurance does have its place, however. It is the insurance choice for those individuals who are self-employed, unemployed, or for students who are no longer eligible to be insured under their parents’ plan.
How much does private health insurance cost?
The premiums for private health insurance vary greatly, depending on a number of factors.
However, the average cost for an individual is around $2,900.
The average premium for a family is around $6,300.
What factors determine the cost of private health insurance?
The reason health insurance premiums vary so much is due to a number of factors. One factor is where you live. Insurance regulations and rates vary drastically depending on which state you live in, as well as where in the state you reside. To find out more about the insurance in your state, visit the National Association of Insurance Commissioners and click on your state.
Your age is another determinant of your insurance premium. Older individuals tend to have higher health insurance rates than younger ones. This is strictly because of statistics- more health problems tend to arise in older age individuals.
Your health history is a big factor in determining your health insurance rates. If you have a history of health problems, you may have trouble finding a company to insure you. When you do, your premiums will be much higher.
What your job occupation is and what your hobbies are can affect your insurance rates as well. If you work in a high risk profession, such as a flight instructor, or you have hobbies that increase your chances of injury, your health insurance rates will likely be higher.
How can you lower your health insurance premiums?
To keep your insurance premiums lower, there are some things you can do. Keep in mind, however, that these will usually increase what you will pay out of pocket, so choose wisely. If you are fairly healthy and do not visit the doctor or take prescription medication often, you may want to purchase a catastrophic plan, which is also known as a basic and essential one. Your coverage will be very limited but it is one way to keep your premiums low.
Another way to lower your insurance rates is to choose a higher health insurance deductible. A deductible is the amount you pay before your coverage begins. Although a higher deductible will decrease your premiums, you should not choose a deductible that you cannot afford to pay on a yearly basis.
If you go with managed care, you have the choice of an HMO or a PPO. An HMO will be a cheaper choice in terms of premiums, but keep in mind that it is also a more restrictive plan in terms of choosing who you see for care.
A PPO plan is more flexible and there are ways to save money within the plan. You have insurance coverage for doctors and facilities that are both in the network and out of the network. Your out of pocket expenses will be lower if you always choose to go to a service provider in the network, so that is one way to keep your insurance costs down.
For more information on lowering your insurance costs, go to the Insurance Information Institute.
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