How to reduce the cost of health insurance in the USA and does it make sense

Health insurance is not getting cheaper - rather, on the contrary, notices CNBC... Insurance expenses have increased by 1984% since 740, according to Clever. And employers are already reporting an increase in insurance premiums of 3-4,5% by 2021 due to the Covid-19 crisis.

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Therefore, it is so important to use any possible way to save money.

While the inner workings of a health insurance system can be complex, the basics are pretty simple: you pay money every month so that in an accident or illness, your medical expenses are not high enough to bankrupt you.

The two most important terms in health insurance are “premium” and “deductible.” Here's how to use them to get the most out of your insurance.

Premiums are the monthly cost of your insurance. For many people who work for companies that offer health insurance, premiums are automatically deducted from their paychecks.

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Deductibles are a completely different concept that determines how much the insurance company will not compensate the policy holder if an insured event occurs. For example, each year you have to spend $1000 of your out-of-pocket deductible on medical expenses before your insurance will cover them. The franchise can range from $200 to several thousand.

What does this depend on? Typically, the higher your monthly premiums, the lower your deductible, and vice versa. For example, with a premium of $600, the deductible may be $1000, and with a premium of $300, it may already be $3000. Anyone who pays less each month takes on more risk with their finances in case of possible insurance claims.

For example, you pay $ 100 every month and your deductible is $ 1000. How will it look in practice?

You injured your knee and came to the doctor with severe pain. He said that you have a torn meniscus. The operation costs $5000. You pay $1000, and then your insurance kicks in. And if you get in-network care, it will cover 80% of the cost of the remaining surgery, or $3200 of $4000. Another $800 will be calculated as a percentage of co-insurance and added to your bill. In total you will owe $1800.

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Accordingly, if you want to pay less each month, you will have to accept the financial risks associated with such a decision. And in order to pay less for the treatment, it is better to give a larger amount every month.

Including, there are other costs to keep in mind when it comes to health insurance. Therefore, it is important to study your contract and deal specifically in your case with the system of copayments and the procedure for dealing with an insured event on and off the network.

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