OutofPocket Blog: Reducing out-of-pocket health care costs - High deductible Health Insurance

Applying Out-of-pocket expenses to my deductible

Admin — Tue, 24 Aug 2010 21:26:31 GMT

My family has a high deductible health plan with a $5,200 annual deductible and a Health Savings Account (HSA). I really like our health plan because it provides my family with great coverage in case of any major medical events, and our monthly premiums are considerably lower. In a typical year, we never meet this deductible.

This calendar year my family has accumulated some medical expenses and it looks like we might be meeting our deductible by the end of the year. I have a number of prescriptions filled at our local Walgreens Pharmacy so I joined the Walgreens prescription savings club to save 25% on all my prescriptions. This is a huge savings for my family. Almost a month ago I realized my prescription out-of-pocket spending was not being applied towards my annual deductible and since this was almost $2000 in Rx expenses – I was concerned.

It turns out that if you join the Walgreens savings club and use your savings club discount when you pay for prescriptions, Walgreens does not submit these drug claims to your health insurance plan. In order for these expenses to be applied to my deductible, I am required to submit these receipts myself. Why Walgreens cannot forward these claims is a mystery. But now that I know, I will make sure these drug expenses get applied to my deductible.

Making the most of your health care dollars

Admin — Wed, 17 Jun 2009 16:27:52 GMT

CNNMoney.com published an article, “10 ways to beat the rising cost of health care.” This article includes some excellent tips for consumers. Here are some great ideas that can help you manage your health care dollars.

1. Before you visit a provider, ask “how much will this cost?” Negotiating is important if you have a high-deductible plan, are uninsured, or using a provider out-of-network. The good news --providers are becoming more accustomed to patients asking for discounts. All you have to do is ask.

2. Discounted prescription medications. Medications can be very expensive. If you can take advantage of mail-order pharmacies or even retail chains that offer generics for just $4 - you can save a lot of money. There are hundreds of mail-order pharmacies, and you can find them by doing a Google search.

3. Take advantage of employer sponsored Flexible Spending Accounts (FSAs). According to Mercer, about 80% of large employers offer FSAs, but only 22% of employees enroll in these plans. This is tax free dollars that you can set aside for health care expenses. If you are in the 28% tax bracket, a $1000 FSA may save you about $350. Beware that money FSA dollars that aren’t spent by year-end are lost.

4. Be sure to look into high-deductible health plans (HDHPs). We are starting to see a higher rate of adoption for these plans because they encourage personal responsibility, create financial incentives for consumer to make informed choices for staying healthy and are successful at reducing health care expenses! These HDHPs offer lower-monthly premiums and can save you thousands of dollars a year on reduced premiums, but require you to satisfy your deductible before your insurance kicks in. For many people, saving $5000-7,000/year on premiums and paying a $5000 family deductible is a great deal. In a healthy year, you might not even have met your deductible! Do some research to determine if this plan is right for you.

5. Health Savings Accounts (HSAs). With an HSA you can save pre-tax dollars to pay for health care expenses. In 2009, a family can contribute $5950 and single person can contribute $3000. As an extra bonus, American Chartered Bank offers free HSAs. It’s definitely worth checking into.

6. Walk-in retail clinics are less expensive than office visits for non-emergency, routine medical services. They post their prices upfront and most now accept insurance.

7. Stay insured if you lose your job. A federal subsidy covers qualifying individuals with 65% of the COBRA premiums.

8. Make healthy life style choices. Employers are implementing wellness programs where they often reward employees for behavior changes (losing weight or quitting smoking). The personal benefits of making healthy choices and taking personal responsibility are priceless!

9. Avoid Medicare mishaps. Before you sign up for Medicare, or Medicare supplement programs like Medicare Advantage, make sure you understand what is covered and what is not covered.

10. Adding vision and dental expenses to your health plan can inflate your premiums. If your health plan does not cover vision and dental, remember vision and dental expenses can be paid for through your FSA or HSA. If you pay high monthly premiums for dental and vision, be sure to calculate the total cost of coverage vs. your annual expenses. You might be surprised at the savings if you decide to opt out of dental/vision coverage and pay out-of-pocket. And be sure to ask your dentist or eye doctor for a discount!

Shopping for radiology tests online

Admin — Wed, 20 May 2009 14:06:47 GMT

What if consumers could shop for radiology tests (MRI, CT scan, ultrasound, x-ray, mammogram, DEXA, PET, and fluoroscopy), the same way they shop for hotels and airline tickets?

Radiology tests like MRI and CT scans have become key tools for physicians to help diagnose and monitor disease. It's no surprise that diagnostic imaging has become one of the fastest growing segments of healthcare, consuming billions of dollars per year. In fact we will spend over $20 billion in 2009 just on MRI scans alone.

Many consumers are increasingly forced to burden the costs of these high-tech medical tests through high deductible plans, often paying hundreds of dollars out of pocket for a scan. And uninsured consumers are faced with costs that can easily run into the thousands of dollars. For example, a Lumbar Spine MRI scan performed at a hospital can cost an uninsured consumer $3,000.

Healthcare is still mired in complex and opaque pricing strategies that make it difficult, if not impossible, for uninsured consumers to discover the real costs of Radiology tests and receive the same prices that health insurance companies enjoy. Fortunately there are technology companies, like RemakeHealth, that are building online resources to help healthcare consumers.

RemakeHealth recently launched its Radiology shopping website which lets consumers look up prices for nearly any outpatient Radiology test, find a local certified imaging center and purchase the test with a credit card. Radiology tests featured include X-rays, MRI scans, CT scans, Ultrasounds and more. All the imaging center providers on the website are certified by the American College of Radiology and staffed by American Board of Radiology certified Radiologists.

RemakeHealth acts like a travel agent and has negotiated prices for uninsured consumers in advance. When consumers purchase a test they receive concierge like services which include a personal phone call to set up the appointment and answer any questions about the test.

RemakeHealth is also working to eliminate confusing healthcare pricing schemes. For example a Brain MRI usually has 3 different prices: without dye, with dye, with and without dye. They have simplified this by offering one price and not charging extra for dye injections. Consumers are also often unaware of large price variations that occur between facilities in the same town. RemakeHealth has addressed this by creating one price for each type of test in each of their local service areas.

The company was founded by Dr. Ravi Sohal, who is a Radiologist, and its cofounders are from the Radiology industry as well. The founders have dedicated themselves to helping uninsured consumers make informed decisions by building healthcare shopping tools similar to the ones we all enjoy when looking to buy nearly everything else online. They have always been amazed that you can shop for an airline ticket and hotel room but not for an X-ray and MRI scan, until now.

A Little Self-Discipline

Admin — Wed, 04 Mar 2009 23:35:43 GMT

Consumers with health insurance plans that have low-deductibles and low co-payments have absolutely no motivation to shop around for the best value or compare prices before visiting a provider for even the most routine type of services (MRIs, x-rays, mammograms, lab tests, dental and vision). They purchase health care services from whomever, regardless of price or quality of service. They visit emergency rooms for non-emergency conditions because “it only cost $75 co-pay for a visit to the ER.” They often overuse medical services, have an unnecessary number of diagnostic tests performed, and fill every prescription a doctor prescribes without questioning generic alternatives. These consumers are not concerned about the true cost of health care services.

When consumers have high-deductible health plans, they are rewarded financially for making good choices. Spending health care dollars is spending their own money so they are interested in making cost-effective choices. Everything changes. People become responsible about their health and their health care costs, and expenditures drop like a rock.

Quality Tools: Doctor Reviews & Price Transparency Tools

Admin — Tue, 02 Dec 2008 18:22:16 GMT

Are these tools useful?

Doctor Review Websites

The November 28 edition of Slate.com included an interesting article by Dr. Kent Sepkowitz. His article sheds some light on all the doctor rating websites available today. Dr. Sepkowitz spent many hours reviewing doctor rating tools, including free sites and sites that require subscriptions or fees to obtain this information. His conclusion: the online doctor rating tools are very lean, content-free and lack any useful information.

Last month I posted a blog about finding the best value (understanding the quality side of health care in addition to finding the best cost) and listed 25 different websites that offer doctor ratings. I neglected to mention that I never use these doctor rating sites because they are not useful. They lack meaningful data. All of them. Instead, I ask my doctors, family, friends, and community for their personal recommendations. Then I go online and start to research the doctor’s certifications in more detail using many websites, tools and blogs to read other patient’s comments and experiences. Since this is user generated content, you need to be able to read between the lines. Sometimes people just have a bad day and they should skip writing reviews online until they have 24 hours to think about what they want to write and their mood stabilizes.

Price Transparency Tools

I am dedicated to promoting price transparency in health care. This is what I do and that’s why I launched OutofPocket.com almost two years ago. If I can help consumers make more informed and cost-effective choices before visiting a provider, then I have accomplished my mission. When consumers start making more informed choices, become active participants in their own health care and demand greater transparency --- good things result including lower costs, more innovation, more choices and improved access to medical care.

OutofPocket.com is not the only price transparency tool available. Dozens of others are out there and I research all the new tools to evaluate their usefulness so I can talk about these tools in my next presentation. Unfortunately, the price transparency tools seem to have the same disease as the doctor rating tools. Each has some amount of data, but not enough to be meaningful and comprehensive. Wouldn’t it be interesting if these tools collaborated and consolidated their data to produce a robust tool where shopping for routine health care servcies would be comparable to the experience of shopping for items using eBay or Amazon.com, where you can easily compare quality, prices and recommendations?

Here is the short list of 20 price transparency tools. If you would like my comprehensive list and review of each tool, please send me a note and I’d be happy to forward this information to you.

Alijor
AMA CPT Lookup Tool
Carol
CostHelper
DoctorPricing
HealthcareBlueBook
HealthPricer
HospitalVictims
MainStreet Medica
MedcareCompare
MyHealthScore
MyMedical Costs
MyRegence
OutofPocket
PatientCare
RemakeHealth
Spectrum Health
UCompreHealthCare
USA Healthcare Costs
Vimo

Affordable Lab Tests

Admin — Tue, 25 Nov 2008 16:19:29 GMT

Do you know how to find affordable lab tests?

Fortunately I have good health insurance. Four years ago I signed up for a high-deductible health plan for my family in order to keep our premiums down. My deductible is $5,200 and as a result, I am getting really good at shopping around for the best value, negotiating cash prices with providers, calling around to get prices and using available tools/resources to comparison shop/understand fair prices. The more money I am able to save on finding affordable health care, the more money I have to spend on family vacations. That’s enough incentive for me.

My health insurer has negotiated special deals (discounts) with providers in my network. When I use these network providers, I am charged the discounted rate for services. This carefully guarded rate is difficult to find out until after services are provided because health insurers keep negotiated prices a secret. That’s why I encourage consumers to post/share rates they paid for actual services in OutofPocket.com directory, to share with other consumers. If insurers and providers will not reveal these prices, consumers should!

I recently had a series of blood tests done that were required for my upcoming surgery. I realized if I went to my doctors office to have these blood tests taken, my out-of-pocket costs would be much higher, so I selected a stand-alone lab testing facility that offers affordable lab tests. I went online to find Quest Diagnostics and scheduled my appointment. I just received my EOB and here’s what I discovered

Prices For My Lab Tests for Comprehensive Blood Test

Total Quest Labs billed to my insurance plan $ 193.78

Total discounted by my insurance plan $ 143.78

Amount of my out-of-pocket for my lab tests $ 50.00

If I wasn’t careful, I could have easily ended up paying a lot more for my lab tests. If I did not have insurance, I would have negotiated a cash discount with the lab when I scheduled the service, to make sure I get a fair price. Because of my cost-effective choices, I saved about $144.

Here are some resources you can use to find affordable lab tests in your area.

www.PrivateMDLabs.com

www.QuestDiagnostics.com

How do you search for health care prices?

Admin — Fri, 31 Oct 2008 21:05:17 GMT

If you have a health insurance deductible to satisfy, or if you are enrolled in a consumer driven healthcare plan, or if you have out-of-pocket costs that add up to more than $25/visit, I am sure you try to make the most of your health care dollars by finding low-cost providers that offer the best value. How do you find these low-cost providers?

Starting November 1^st, I am polling the community to find out how you search for health care prices. I am interested in understanding how different consumers search for low-cost healthcare prices. What tools do you use to compare prices for health care services? What “search terms” do you type in Google to find prices for health care services?

Let’s assume you visited your doctor and you need to have a non-emergency test or procedure performed. How do you go about your search to compare prices for services like MRIs, x-rays, mammograms, vaccinations, lab tests, or a colonoscopy? Do you ask your doctor for estimated prices? Do you call the hospital or facility and ask for prices? Do you ask your family, friends or neighbor to compare what they paid? Do you call your health insurance hot-line for prices and recommendation on where to get the best value for this service? Do you use Google to search? If so, what search terms do you use?

Send me an email to let me know what search terms you would use (or have used) to look-up and compare health care prices for specific services. The first 1,000 people to respond will be entered in a drawing for a chance to win a $50 Amazon.com gift certificate. Email entries will be accepted through November 30, 2008.

Here are the details to be included in the drawing for the $50 Amazon gift card. Send an email to info@OutofPocket.com and in your email message be sure to include:

(1) What specific resources you would use (search engines, websites, online tools)

(2) What search terms you would use to find prices for health care services

(3) An email address where we can contact you, to notify you if you win the drawing

Good luck and thanks for sharing your search tips with us.

Looking for Health Care Prices, But Cannot Find Them

Admin — Mon, 20 Oct 2008 00:39:02 GMT

A recent visitor to OutofPocket.com contacted me because he couldn’t find prices for a specific procedure he was looking up in our directory. This is a great question and I want to share my response with others.

It’s important to understand that the OutofPocket.com directory is a collection of user generated content. Because insurance plans and providers are not willing to make their true prices public, we rely on consumers to post/share prices they paid for actual visits – to share with other consumers. Our database is limited to the prices/services supplied by other consumers. As awareness for OutofPocket.com builds, we will have a more comprehensive directory of services and prices supplied by consumers – including services like the one you are looking up but cannot find in OutofPocket.com.

If you do not find your service in OutofPocket.com there are several other tools you can use to research prices for specific health care services, procedures or tests. The Government CMS website includes a tool that can be very useful. If you know the specific CPT code you will be able to match the exact procedure to determine what CMS reimburses providers for that procedure. CMS Medicare payment data is always a good starting point if you need to know the lowest possible payment for any CPT code. I'm not sure insurance plans have negotiated rates as low as Medicare, but it's a good benchmark.

Here are links to four tools you might find useful to look up prices for specific health care services.

AMA CPT Code Search Tool to look up CPTs to determine Medicare reimbursement amounts

MyHealthScore online tool to look up fees for specific procedures

USA HealthCare Costs online tool to look up what Medicare pays for specific CPTs

VIMO search tool to compare medical procedure prices at hospitals

Make Informed Choices

Admin — Thu, 16 Oct 2008 01:00:44 GMT

Here are some useful articles to read that will help you make informed choices -- before you visit a provider and before you purchase health care services. With the end of the year approaching, many employers are offering open enrollment, and many individuals are looking to purchase health insurance. Here is a list of some aticles that provide very useful information.

Your Doctor May Be Clueless About Cost (U.S. News)
How To Cut Health Care Costs (Forbes.com)
Health care costs rising, but expenses can be controlled (USA Today)
This Open-Enrollment Season, Beware of Out-of-Pocket Costs (Wall Street Journal)
Logging On for a Second (or Third) Opinion (The New York Times)
Six Ways to Save Money on Prescription Drugs and Doctors (CNN.com)

Do You Know Your Out-of-Pocket Costs

Admin — Wed, 15 Oct 2008 20:10:30 GMT

Beware of out-of-pocket costs

When you sign up for next year’s health plan during the open enrollment period, beware of out-of-pocket costs. The key to making an informed decision is to understand the (1) real costs you will be expected to pay and (2) the specific coverage your health plan offers. Unfortunately, many of the costs are not obvious and you really need to read the fine print to understand exactly what is covered and you will need to ask a lot of questions to know the specific costs you will be expected to pay.

With health care costs rising every year, you will be paying more for your health plan benefits in the form of increased monthly premiums, co-payments, co-insurance and deductibles. Many employers are encouraging workers to select consumer driven high-deductible plans (CDHPs). These plans require employees to pay more out-of-pocket charges for visits and services, but have a much lower monthly premium. CDHPs can save you hundreds of dollars on premiums per month and very often high-deductible plans are paired with health-savings accounts (tax free dollars) When you select a high-deductible plan, you will be financially motivated to make the most of your health care dollars and you will be more than willing to shop around for the best value before visiting a provider. Most people don’t realize this but it is possible, with a high-deductible plan, to actually spend less out-of-pocket dollars during the year. Here’s how.

Plan	Monthly/Annual Premium	Deductible	Co-Pays throughout the year	Out-of-pocket health care costs for the year	OutofPocket Amount Spent
High-deductible	$300 month, $3,600/year	$5,000	$0	Premiums + Deductible	$8,600
Traditional plan	$900 month, $10,800/year	$0	7 co-pays @ $35 = $245	Premiums + Deductible + Co-pays	$11,045

>Here’s what you need to know before choosing a new health plan.

Identify what your co-payment amount is for health care service like doctor visits, hospital stays, outpatient procedures and diagnostic tests. Be aware of co-insurance charges, which typically require you to pay a percentage of the total cost of service.

Understand what services are NOT covered. Read the fine print and don’t assume anything.

Before you sign up for a health plan, you should try to understand how your insurance plan’s contracted rates (with health care providers) compares to other insurance plans contracted rates. In other words, what amount are you expected to pay when you visit your doctor? Is the fee $100, $70 or $50? If you need to have an MRI will your plan require you to pay $600 or $2000? I should warn you that this is very difficult information for consumers to obtain, but it can save you hundreds of dollars on out-pocket expenses when you understand these negotiated prices. A provider typically has many different prices for the exact same service because insurance plans negotiate different prices for the service. Your health care dollars will go a lot further if your insurance plan has negotiated low rates with health care providers.

Survival Guide for the Health Care Consumer

Admin — Mon, 29 Sep 2008 14:38:25 GMT

If you need to become a better consumer of health care (who doesn't?) be sure to read the book recently published by change:healthcare titled "My Healthcare Is Killing Me." This book is available online and provides a practical guide to health care covering insurance basics, some helpful terminology, how to choose a provider, and how to select an insurnance plan that's right for you. The book includes many helpful resources, definitions and examples. This is a quick read of 140 pages -- well worth your time. . You will be a more informed health care consumer after reading this book. Congratulations to the change:healthcare team that wrote this book.

How Much Will This Service Cost Me?

Admin — Wed, 03 Sep 2008 23:13:43 GMT

Today, HSAeducator.com, an online community and educational website on HSAs, posted a blog entry about a consumer's personal experience using OutofPocket.com to look up prices for a strep throat culture.

" I typed "strep throat" into the OutofPocket.com website and POOF, it gave me pricing for strep throat testing in my area. The tests ranged from $10.00 to $55.00. Unfortunately, the locations listed were really not that near my house, so I couldn't hit the $10.00 strep test store. But I will have an idea of whether the price of the test was good, bad or ugly. "

Thanks for sharing your story. We invite everyone to use this search tool to look-up prices for routine health care services (MRIs, vaccinations, x-rays, lab tests, office visits, mammograms, dental, vision) and don't forget to post/share prices you paid for actual visits after you receive your statement or EOBs for the service.

Are You Overpaying your Medical Bills

Admin — Tue, 02 Sep 2008 13:59:19 GMT

Good news for consumers. There are some simple steps you can follow to make sure you keep control of medical bills and make sure you are not being overcharged for services.

First, review your bill very carefully. You can request an itemized bill. Use free online tools to find out what other consumers paid for similar services using OutofPocket, CMS Medicare CPT look-up tools, and Vimo.

Second, you should know if your insurance covers your treatment. If your procedure falls into a gray area, you should submit letters and official paperwork from providers, including referrals that explain why the treatment was necessary.

Third, remember you always have an opportunity to negotiate down the charges. The total charges that appear on your medical bill have no relationship to what the provider will accept as payment in full. Health care providers bill everyone the same amount, from Medicare to private insurers to the uninsured. However, the full charges that appear on your bill are much higher than the provider’s actual costs. The Government and private insurers negotiate a reduced price for services. Here’s an idea to consider – start by asking your provider how much Medicare would pay for a procedure similar to yours. Using this information, you should talk to the CFO or billing manager and ask for a reduction to the provider’s actual cost, plus 25%. By the way, doctors have also suggested patients without insurance try this approach.

Fourth, hire an expert to help you review and appeal your medical bills. If your medical bills are complicated and large, you can hire a medical billing review service.

Source: Elizabeth Ody, “Some simple steps to keep control of medical bills,” Premium Health News Service, September 1, 2008.

Urgent Care Centers vs. Hospital Emergency Rooms

Admin — Fri, 08 Aug 2008 15:02:13 GMT

The next time you have an injury or illness that requires immediate care, consider using an urgent care center rather than the traditional hospital Emergency Room. Urgent care centers are staffed by physicians, offer sort wait times, are less crowded, cost a fraction of what hospital ER visit would cost you, and you can walk in without an appointment. The urgent-care centers are equipped to handle anything from a simple cut and treating broken bones, to deploying advanced life-support equipment. Some offer discounts and payment plans and many health insurance plans cover urgent-care clinics.

The CDC published interesting statistics on the unnecessary and overuse of hospital Emergency Rooms. In 2005, 115.3 million people visited Emergency Rooms and only 5.5% of the patients needed to be seen immediately. Only 21% of theses ER visits were identified as semi-urgent and needing to be seen within one to two hours, and 14% of these visits were evaluated as non-urgent

Source: Laura Landro, "Options Expand For Avoiding Crowded ERs," Wall Street Journal, August 6, 2008.

AOL Provides Tips on How to Cut Your Health-Care Costs

Admin — Tue, 24 Jun 2008 16:18:29 GMT

AOL recently posted tips to help you save money on health care costs. Consumers should not have to pay full price for services. One of the tips recommended that consumers should use OutofPocket.com as a tool to help them compare costs and find out what other consumers paid for similar services. "Providers are often willing to negotiate, with both insured and uninsured patients and those whose insurance only covers a portion of their health expenses", says Jonathan Pletzke, author of "Getting a Good Deal on Your Health Insurance Without Getting Ripped Off."

Paying cash up front helps consumers save money because providers do not have to process billing and insurance forms, and are often willing to discount prices in return for payments at time of service.

Be sure to compare costs before purchasing health care services. The more you know, the better informed you will be to negotiate a fair price for services.

Make Smarter Decisions about Health Care Providers

Admin — Tue, 13 May 2008 15:25:29 GMT

A recent article, Click here for the best health care, offers some very practical advice on how consumers can make smarter decisions when selecting doctors and hospitals - and how to plan ahead for medical expenses.

Selecting the right doctor

Consumers can find out about a doctor's experience and a hospital's success rates, and even find information on what these services cost. First, get to know your doctor. Do some research to find out what other patients have to say about the doctor. Personal recommendations carry a lot of weight and people trust what other consumers have to say. Check if your doctor is board certified. Search the American Board of Medical Specialties to find out. Make sure your doctor has done this procedure before. Use Vitals.com to find out how many times a doctor has performed certain procedures in a year, and look up historical data to determine if there are any sanctions or malpractice claims. If you cannot find this information on public sources, call the doctor’s office and ask. You want a doctor that has lots of experience. Know the price before you visit the provider. If you have out-of-pocket expenses, it’s well worth your time to call your doctor and your insurer to determine the amount you are responsible for.

Selecting the right hospital

Hospitals provide a lot more performance data. Just like doctors, hospitals get better with experience. You can use Vimo.com to find out how many times a hospital has performed a procedure. RevolutionHealth.com also provides similar information. HealthGrades is an excellent source of quality ratings for hospitals. You can purchase a report from HealthGrades to obtain cost and quality information.

Consumers Driving Health Care

Admin — Fri, 07 Mar 2008 21:51:00 GMT

Be sure to read the article When Consumers Are Driving Health Care, in the March 6, 2008 edition of the Raleigh News & Observer written by Max Borders, a Policy Analyst at the Civitas Institute.

The seven million consumers with high-deductible health plans and HSAs, will definitely be able to relate to this story.

Ten Ways to Reduce Your Medical Bills

Admin — Wed, 06 Feb 2008 18:24:44 GMT

In January, the Consumer Health Care Blog posted ten useful tips to help consumers reduce their medical bills. If you haven't read this article that was originally published on BankRate.com, be sure to check it out.

Ask your doctor to be your ally
Compare costs by using CPT codes
Find friends in the billing department
Negotiate lower prices, payment arrangements
Ask if recommended services are necessary
Explore state-sponsored hospital web sites
Check your insurance company’s website
Ask for the Medicare rates
Go generic
Sweat the small stuff

All I Want for Christmas is Affordable Health Insurance

Admin — Fri, 21 Dec 2007 00:11:12 GMT

Are you paying too much for your health insurance? Before you go out and replace your current health insurance plan, you really need to do your research to understand the different options that are available for you to choose from.

Years ago, health insurance was almost always provided by your employer. The only choice you had to make through your Human Resources Manager was whether to choose plan A, B, or C. Today, more individuals are now purchasing health insurance on their own. As the cost of health care continues to rise, many employers can no longer afford to provide their employees with health insurance. Some businesses are even offering their employees more affordable options that are described with words like “consumer directed”, “high deductible”, and “HSAs”. What exactly does all this mean to you? If you have always had traditional first-dollar coverage employer-based health insurance, this could all be very confusing to you. My advice to you -- before you go out and purchase health insurance on your own, you should get up to speed on some important issues that can save you thousands of dollars and avoid making painful mistakes selecting the wrong plan for you/your family. Purchasing health insurance requires a level of knowledge that many of us are not comfortable with.

I just read a book that does an excellent job informing consumers on how to save money on your health insurance. This easy to read book, Get a Good Deal on Your Health Insurance without Getting Ripped Off, written by Jonathan Pletzke was recently published and is a must read if you are a consumer in the market for health insurance. I highly recommend this book if you feel like you’re paying too much for your health insurance and want to understand your options. For $16.45 at Amazon.com your return on investment (ROI) is substantial. You can save yourself hundreds of dollars a month by becoming a well informed consumer and can avoid making the costly mistakes from purchasing the wrong type of health insurance plan for your family. The book and accompanying website is available at www.BestHealthInsuranceBook.com.

Happy Holidays,

Mona

Switching from a traditional health insurance plan to a high-deductible plan

Admin — Wed, 12 Sep 2007 03:01:26 GMT

Several years ago I decided to switch to a high-deductible health insurance plan (HDHP) for myself and my family. I pay 100% of my own health insurance premiums and one of the factors that influenced my decision to switch was how expensive my insurance premiums were getting even though I basically made no insurance claims over the past five years, other than annual check-ups. After my accountant suggested I look into high-deductible plans, I calculated that I could save $7000 in premiums every year and use my HSA to help pay for my medical expenses. With my HDHP I have become a cost-conscious consumer of health care services, and I shop around for the best value, just like I would shop around for a car or electronics. The only problem is there are no Consumer Reports for health care where I can easily find the best value for health care services. I have no meaningful tools to help me make informed choices about where to find the best value for routine health care services like MRIs, X-rays, vaccinations, mammograms, and office visits. How do I avoid the overpriced providers with poor performance ratings? Now that I pay out of pocket for these services (up to $5000), how do shop for value? How do I find out what other patients think of a physician that is listed in my plans network?

-- posted by Moni Lori