Posts Tagged ‘co pays’

How Health Insurance Can Make You Financial Secure

Tuesday, June 16th, 2009

With money being on the midst of every American, come the concerns of what they need to cut back on and how to live a frugal lifestyle. Some choose to forgo vacations, shopping sprees, restaurant dining and even grocery spending. Though there are some that decide to cut back on the monthly insurance premiums.

There is a different mentality between wealthier people and those with less money. Wealthier people believe in insurance as a key to their financial security even in times of financial crisis, however the more impoverished see insurance as a luxury; a monthly expense that when compared to food, clothing and shelter, is just flat out unnecessary. This misconception can be very costly.

Insurance should not be considered and extra, instead it should be looked at as an important part of keeping themselves and there family’s safe. Without insurance you may be leaving a bigger hole in your families financial security should a medical situation arise.

Many times, the individuals who believe that there is no need for health insurance, have little to nothing. Realistically these are the individuals who need the insurance the most. Insurance coverage, like health insurance, can cover many unforeseen circumstances. If you become ill and pass away your insurance plan pays all your medical bills leaving your family free of the responsibility. Also, what if your home burns down, will you be able to afford to go and buy a new one right away, could you replace every item in your home? Most likely the answer is no, this is where insurance plays a crucial role in everyone’s life.

To sum up, insurance coverage, such as life, health, car and homeowners policies, are there to protect all that you have accumulated including you family. Please do not over look the importance of this monthly expense. It is better to eat noodles ever night then to not be insured.

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When You Know Your Employer Insurance Is Not The Right Choice

Wednesday, June 10th, 2009

When looking for a new job, one of the first things that you want to know is does your employer offer a comprehensive health insurance plan that is subsidized for their employees, if they do, then you may think that you have hit pay dirt. This may or may not be the case however, because most employer based health insurance plans are being cut way back, and what used to be a good deal may be costing you a lot more out of pocket than you realize.

The important thing to look at is your out of pocket expense. Some insurance plans cost a lot, so the first part of considering your OOP is to consider how much the actual insurance premiums are costing you. Then other factors to consider are the co-pay or percentage per visit that you are expected to pay, because over time this can amount to quite a bit of money. Last, but certainly not least, you should consider your deductible amounts, and whether they are per person or a family deductible.

Although this type of insurance is a better deal than getting it through a private company, there are some factors that can vary from employer to employer. One example of this is the fact that not ever company pays the same percentage into an employee’s health plan. Some will pay 60-70% of your insurance premiums where as others may only pay 30-40%.

Another important aspect to look into is any additional cost for emergency room visits, non network facilities and more. This is where a health insurance tends to get costly.

It is important to realize, that although you definitely need to have health insurance coverage, employer coverage is not all the same and if you change employers than you should assess the costs of their insurance and compare them to costs through independent insurance carriers. You may just find that your best and most cost effective choice for health insurance coverage is actually not through your employer.

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