How to lower your health insurance premiums without lowering the quality of your health plan.
insurance premiums have been going up at a rapid pace. It is a challenge to keep premiums down without sacrificing benefits. The key to keeping your costs down is to use a supplemental health plan along with your major medical plan. Let me explain and give you an example.
The Smiths are a family living in Dallas and consist of a father who is 40 years old and a mother who is 35. There are two children. A girl of 10 and a boy of 8.
A typical PPO health insurance plan for this family with a $2,500 deductible is $704 a month. I know, it is outrageous. There is a co-pay for doctor visits of $35 and generic prescriptions of $15.
If we raise the deductible to $5,000 and keep everything else the same, the premium drops down to $538 a month.
What has really changed? If you end up with a serious medical issue, you will be out of pocket an additional $2,500. How much do you save per year? You save almost $2,000. If you are essentially healthy, you have an additional $2,000 in your pocket. So, what is the real difference between these two plans? If you got past the second grade you already know it is only $500. You are at risk for an additional $500.
Do you feel like living on the wild side? OK, let's move the deductible up to $7,500 and still keep doctor visits, prescriptions, etc. the same. The premium is now $458 a month. This is a savings of about $3,000 a year.
Are you getting a little nervous? Don't worry, I have a solution. We use a low cost supplement plan to take care of this deductible differences and still pocket a large savings.
For about $75 a month, this entire family (a single person is only $30 a month) can get a supplement plan that does the following:
If you are hospitalized it will pay out as follows:
- 1st day in hospital: $1,000
- 2nd day in hospital: $500
- 3rd day in hospital: $1,000
- 4th day in hospital: $1,000
- 5th day in hospital: $1,000
- 6th day in hospital: $1,000
Using this chart, if you are in the hospital for three days you will be paid $2,500. If you are there for five days, the plan will pay you $5,500.
It will also pay you $500 if you go to an emergency room for an accident, and up to $1,800 for specific injuries like a broken arm, etc.
Let Me Sum it Up for You
Instead of buying a $2,500 deductible plan for $704 a month, this family bought a plan that had a $7,500 deductible. Doctor visits, prescriptions, etc were all the same.
They saved $3,000 a year on premiums. From the savings they purchased a supplemental plan for $900 a year that would give them first dollar coverage assistance if they were hospitalized (up to $5,500). It will also pay emergency room costs up to $500 without meeting a deductible.
This is how you save money on your health insurance premiums.
If you call me or send me an email I will send you a brochure and application for this plan
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