Improve the Health of Your Insurance

As the federal government plans to overhaul the healthcare industry, how can you as a consumer save on your health insurance costs?

When looking over your health insurance needs, be sure to find coverage that is both affordable and protects you in the event you need care.

It is important for consumers to remember that while they may be able to choose a plan with lower premiums, it typically leads to higher co-pays or less covered needed services.

For those individuals in need of health insurance, there are different options out there that can not only give them the proper coverage, but also save them money along the way.

First, try and participate in your employer's plan.

Given the fact that employers funnel a high amount of business to the insurance company, the employer is typically able to wheel and deal more favorable rates, thereby leading to savings for you. This is as opposed to purchasing an individual health insurance policy straight from the insurance company.

Also make sure that your employer deducts your health insurance premiums from your paycheck on a pre-tax basis.

What that leads to is your insurer determines your gross pay, subtracts your health insurance premium as a reduction to your gross pay, then figures out and deducts your income taxes. In decreasing your overall gross income, you have less taxable income and pay less in federal income taxes.

Employees also have the option of enrolling in their employer's flexible spending plan.

With a flexible spending plan, individuals can move a certain portion of pre-tax dollars from each check into an account that they can submit claims against. In contributing pre-tax dollars, the individual basically decreases their overall gross income leading to lower federal income taxes paid for the given calendar year.

Individuals should also look to purchase prescriptions via a mail order pharmacy.

The majority of mail order pharmacies will allow consumers to acquire a 90-day supply of their prescription medications for the same co-pay as they would pay for a 30-day supply at more traditional pharmacies.

Finally, it is important for individuals to stay out of the emergency room as much as possible.

Co-pays for the emergency generally are much larger than regular office visits, so you're looking at substantial extra costs there.

In the event you are suffering from something less taxing, try and use your doctor's office to diagnose the problem.

When shopping for health insurance, be sure to do as much research as possible and work with a qualified independent agent.