Health insurance works to help reduce the amount that you would otherwise need to pay for health care. This normally is how most health plans work, but they may differ: You pay a fixed premium every month. This is usually an administrative fee for using the health plan.
Some plans allow for flexible spending. This means you may decide how much of your medical care you want to pay for and how much you want to save. If your spending exceeds the amount of your premium, you may get higher premiums or less coverage than what you were originally looking for.
Each insurance company has its own way of determining how much insurance you’re going to need. For example, some companies calculate how much insurance you will need based on the annual deductible that they offer. Other companies base their fees on how much you pay in deductibles and how much you’re willing to spend out of pocket each year.
One important factor is the deductible. The higher your deductible, the lower your premiums. However, this type of insurance can also have a limit. If you spend more money each year out of pocket, the insurance company may raise your deductible. A family health care plan with a high deductible may not be the best choice for you if you want insurance that pays a large percentage of your medical costs.
Most health insurance policies have a co-payment option. This is the amount that you have to pay as a deductible each time you visit the doctor. Your insurance company will pay a portion of your doctor’s bill before the remainder is paid by you. You can choose how much of your bill you want to pay. The higher the co-payment amount, the less money you’ll save in the long run.
Many people also choose a discount medical insurance plan that covers their children. These plans cover major medical costs, but the cost varies. Your health care insurance company will usually require that you and your family meet a standard of health and present age. This can be a great option for families who need coverage for children but don’t want to spend out of pocket for the cost of doctor visits and prescription drugs.
You can also look at a “fee for service” policy. With this type of insurance policy, you pay the entire medical cost as soon as you visit a doctor visit or go to the emergency room. A larger share of the premium is deducted from your paycheck, so you’ll have a smaller portion of your check for your medical care each month.
If you want to receive care free of charge, you can check with your insurance company about a “no-copayment policy.” A “no-copayment policy” means that you won’t have to pay anything out of pocket if you visit the doctor. Your insurance company will cover a percentage of the doctor visit or office visit but will not deduct any costs from your monthly premium. A “no-copayment” policy can save you hundreds of dollars per month, depending on how much you visit the doctor.
It’s important that you be aware of any discounts your health insurance plan may offer. Some health insurance plans offer discounts for regular check-ups. Your insurance provider could give you a discount for having a child than for not having a child. Or it could give you a discount for being over a certain age or for having received a Preventive Services Card, which your doctor has given you and could be renewed each year.
The more of the necessary preventive services you get, the better off you’ll be. Preventive services include annual physicals and cleanings, immunizations, diabetes testing and supplies, etc. Some health insurance companies offer a discount if you get these services for all four quadrants of your life. So if you’re in your family business, you may want to get a health insurance plan that includes your good health and possible a good discount for getting all four of the preventive services your child needs.
You can also save money on health care costs by getting a good referral. If your child has a health problem, see your doctor immediately. But if you do not get sick, go to the doctor immediately after the first symptoms appear and stay until you get the problem fixed. If you take the time to get the doctor involved and schedule an appointment when needed, you will likely save on your annual health insurance premium. For instance, if you see a chronic cough a week before you’re due for the season, it is a good idea to schedule an appointment. This might prevent a terrible cold or serious chest infection from worsening before the season even starts.
Finally, don’t hesitate to use your health insurance coverage. If you are covered for preexisting conditions, this coverage will almost always make you eligible for additional coverage should you become ill or need to change doctors. Also, if you have one child but have two children who are covered under different policies, it might be cheaper to add them both onto a single policy so that they are covered for out-of-pocket costs. In addition, if you have other forms of insurance that you use for different aspects of your life, such as auto insurance or life insurance, you might also be able to use those other policies to add children to your plan so that you have the coverage you need regardless of your health care needs.