The Real Cost of Health Insurance

Do you know the actual cost of your health insurance? Everyone knows that health insurance costs are continuallyrising, but how do these spiraling costs affect your healthinsurance coverage? You know how much you pay every month foryour health insurance premium, so it's easy to know when thiscost goes up. But what about all the other costs involved withhealth insurance? Before you're hit with an unexpectedly large medical bill, findout about the hidden costs of your health insurance. The PremiumThe premium is the amount you'll pay for the benefits coveredunder your health insurance plan. The premium is typicallybroken down into equal monthly payments. If you've got groupinsurance, your employer or union is probably sharing somepercentage of this cost. The DeductibleIf your health insurance policy includes an annual deductible,you need to understand the details. A deductible is an amountyou are responsible for paying before the insurance companybegins paying out claims. As with car insurance, the higher yourdeductible, the lower your monthly premium and vice versa. Afamily health insurance plan typically includes multipledeductibles, one for each family member.The Co-PaymentA co-payment is a fixed amount you have to pay each time youvisit the doctor. The co-payment amount will depend on the typeof health plan you have. Typically, an HMO will have the lowestco-payment. The co-payment can increase, however, for differenttypes of medical service or if you visit a doctor or hospitaloutside the network. Co-InsuranceCo-Insurance is the amount of a claim that the insured isresponsible for paying, once the deductible has been met. Atypical ratio is 80/20, where the insurance company pays 80% ofa claim and the insured pays 20%. An insured's percentage willusually increase when he or she goes outside the network. Alsowhen the claim exceeds what the insurance company deems"reasonable and customary," the difference is another form ofco-insurance that you must pay.Comparing QuotesMake sure you fully understand these health insurance costs. Askabout them when requesting quotes, especially online healthinsurance quotes. When comparing quotes from different insurancecompanies, it's essential to know all your costs, not just thepremium. Make sure the person preparing your quote clearlydefines the deductible amount and whether there are separatedeductibles for different types of services, the co-paymentamount and the co-insurance amounts. Also, ask the rep todescribe any other costs that may not be readily apparent. Holding Down Your CostsThere are a number of ways you can help control costs once youhave selected a health insurance plan. If yours is a "managedcare plan," be sure to stay within your network. If you canchoose any medical care professional, be sure that theprovider's fees for the services you'll need fall within yourinsurance company's "reasonable and customary" guidelines. Ifnot, shop around for a less expensive provider. Other tips for keeping health insurance costs at a minimuminclude choosing a healthier lifestyle and seeking medical careonly when absolutely necessary. After that health care costs arelargely beyond the individual's control. The best medical advicewould be, don't get an ulcer worrying about them.