5 Things To Remember When Arranging Health Insurance Policies In A Poor Economy
If you are looking to purchase health insurance in today’s bad economic climate then here are 5 five things that you need to look out for.
1. Will your plan give you cover both on and off the job?
Many health insurance policies have specific exclusion clauses that eliminate your benefits for anything which could have been covered by Workers Compensation or a similar law. Now take a minute to read that last sentence once again and pay particular attention to the words ‘could have been covered’. That’s right, most self employed people and even a few small business owners do not carry Workers Comp on themselves.
There are specific insurance policies which will cover you on and off the job, as long as you are not required by law to have Workers Compensation coverage.
2. Are you writing it off?
Home based business owners, independent contractors (1099′s), professionals and a lot of self employed individuals are not taking advantage of the current tax laws.
Many people who are paying all of their own costs are allowed to deduct their monthly insurance premiums. This alone can reduce your net out-of-pocket costs by up to 40%. Ask your accounting professional whether you are eligible or take a look at the IRS website to get more information.
3. Look carefully at a plan’s internal limits
All health insurance policies have some form of internal controls which are used to determine how much they is prepared to pay out for a specific procedure or service. There are two basic methods which are used:
A. Scheduled Benefits
Many plans, some of which are marketed specifically to self employed and independent people, have a detailed schedule of how much the insurance company will pay per doctor office visit, hospital stay or even what limits are placed on payments for testing in any 24 hour period. This structure is generally seen in ‘Indemnity policies’. If you are presented with one of these plans make sure that you see the schedule of benefits in writing. It is very important that you understand any limits because once they have been reached the insurer will not pay any expenses above the stated amount.
B. Usual and Customary Expenses
‘Usual and Customary’ refers to the rate of pay out for a doctor office visit, procedure or hospital stay which is based on what most physicians and facilities charge for that particular service in that geographical or comparable area. ‘Usual and Customary’ charges also represnt the highest coverage on most major medical plans.
4. Remember that you have the ability to shop around
If you are reading this you are probably shopping for a health policy.
Every day people shop for everything from groceries to a new home and while shopping price, value, personal needs and general marketplace conditions are evaluated by the buyer. Bearing this in mind, it is very disconcerting that the majority of people never bother to ask what a procedure, test or even doctor visit is going to cost. In today’s constantly changing insurance market it is going to become increasingly important for for people to ask these questions. Asking about price will help you get the most from your plan and lower your out-of-pocket expenses.
5. Pay attention to networks and discounts
Nearly all insurance companies work with medical networks to obtain discounted rates. In broad strokes, networks are composed of of medical professionals and facilities who contract to bill at discounted rates for services rendered. In most cases the network itself is one of the defining attributes of your program. Discounts will normally vary from 10% to 60% or even more.
Medical network discounts vary but in order to ensure that you minimize your out-of-pocket expenses, it is imperative that you preview the network’s list of physicians and facilities before committing yourself to a policy. This is not only so that you can ensure that your local doctors and hospitals are part of the network, but also so that you can see what your choices would be if you need referral to a specialist.
If you are looking to purchase cheap health insurance then this is a great place to get yourself a free no obligation health insurance quote.
Posted in Healthcare Professionals, Healthcare Services