Thursday, November 5, 2009

How to Save on Health Insurance

By: Nicole Nelson

With open enrollment for many plans starting soon, it is important to know how to chose and maximize your health insurance plan. This may mean changing such things as deductibles, co-pays or co-insurance. It could also mean that you should start buying your own insurance, or switch to your spouse’s plan. In determining whether you should sign up for a high or low deductible plan, you should consider how many times you use your coverage during the year. Usually higher deductibles have lower co-pays and lower deductibles have higher co-pays. Therefore, if you are financially stable and a relatively healthy person that doesn’t visit the doctors that often, a lower deductible plan may be a better idea. Also, flexible spending accounts have become easier to obtain and more beneficial. Some employers may also let you have until March of the following year to use these funds. Flexible spending accounts are a good idea because these funds are taken from your pay pre-tax, saving you tax dollars. Also, in determining health care one should look into an HSA (health savings account). These are usually only offered if you have a high-deductible plan. Not all high deductible plans offer an HSA though. There are many options in choosing a health insurance plan. Therefore, all options should be considered in finding the best option for you.

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