The cost of raising a family can be overwhelming. From daycare to school supplies, there are many expenses to account for. One unexpected cost that many families face is the high price of health insurance premiums.
There are many different types of health insurance policies available. It can be difficult to determine which policy is best for your family. On that note, here’s everything you need to know about saving money on your family’s health insurance policy.
Shop Around
Whether you make use of a government, or employee-based insurance plan it’s a great idea to shop around for the best rates.
There are a bunch of health insurance plans available with different payment plans, deductibles, and requirements. Deductibles are the amount of money your insurance plan states you cover before it kicks in.
For instance, if your medical bill is $2000 your broker may require you to pay up to $500 before it steps in to cover the rest.
High-deductible health plans require you to pay a larger deductible than the traditional health plan but have lower monthly payments. Per the IRS, a health insurance plan for $1400 for individuals and $2800 for a family can be considered a high deductible health plan.
If you make regular visits to the hospital and pay sizable medical costs it’s advisable to get a health insurance plan with lower deductibles. On the other hand, it’s advisable to get a higher deductible plan if you visit the hospital less.
Look Out For Government Benefits
One way to save money on your health insurance and manage your finances properly is to take advantage of government benefits. Your earnings, dependents, and other specifications can qualify you for government assistance with your medical care.
Depending on your income you can qualify for government-based insurance plans like Medicaid and the Children’s Health Insurance Package.
You can also qualify for a premium tax credit. A premium tax credit is available to eligible households who have purchased a health insurance plan via the healthcare exchange. Your premium tax credit is dependent on your income and the number of dependents.
For example, if you lose a member of your family or you have an increase in your income your premium tax credit will reduce but if you gain additional family members or get a pay cut you can qualify for a higher premium tax credit.
Enlist An Insurance Broker
If you’re having trouble deciding the best health insurance plan for you. You can hire an insurance broker to help you get the best health insurance plans
A health insurance broker takes a look at your income, needs, and dependents and compares different insurance packages and plans to help you choose one that works best for you.
Health insurance brokers can also help you get out of tricky situations. For instance, when you face unexpected costs like balance billing.
You can also use iSelect to compare and contrast various investment plans if you’d rather not go through a broker.
Get a Health Savings Account
Even if you have health insurance you are still required to pay deductibles, copay, and co-insurance. This is where a health savings account comes in.
Typically you save money in your health savings account and withdraw it to make payments like deductibles, coinsurance, and copayments. You can invest in your health savings account fund and make tax-free withdrawals from the account.
Another advantage to using a health savings account is that your contributions roll over from year to year and you can also qualify for a tax deduction for making contributions to your health savings account.
In 2023 you can save up to $3850 in your health savings account for a personal insurance plan and $7750 if you have family coverage.
