Tips To Make Health Insurance In Texas More Affordable

In the face of continuing battles over health care reform, consumers have to take matters into their own hands. With some basic insight into how the industry works, you can keep your Texas health insurance premiums relatively low.

High-deductible Plans Cover Preventive Care With No Deductible

Part of health care reform is already in place. Any plan you purchase now doesn't withhold preventive care until you've met a deductible. That means you can get a low-cost plan with a high deductible and still not have to pay for an annual checkup or screenings for life-threatening problems like certain cancers, diabetes and high blood pressure. You won't have out-of-pocket costs for recommended vaccinations, either, even if you get a plan with a $17,000 deductible.

High-deductible plans can cost up to 40 percent less than co-pay plans. Unless you need to see a doctor about every six weeks, co-pay plans can be quite expensive. Since a typical co-pay for a doctor visit is $25 or $35, and you can see an in-network doctor on a PPO plan for as little as $65, having a $25 co-pay may only save you about $30 to $40 per doctor visit. If your plan costs $25 a month for this co-pay benefit, you'd have to see a doctor eight or more times to break even.

PPO Plans Offer Substantial Discounts

A PPO refers to a preferred provider organization or option. PPO plans negotiate lower rates with health care providers, so you can save with significant discounts by going to in-network providers. That can make a big difference when you have a high-deductible plan.

For example, imagine having a $1,000 deductible and $915 in charges for lab work. That's the worst situation to be in, right? The person in that situation benefited from PPO-plan discounts that reduced her charges down to $197.83 even before she met the deductible.

If you've found a great doctor, though, be sure to check the PPO's list of providers to see whether your doctor's services will be available at the discounted rate.

Get More For Your High-deductible Plan By Lowering Your Taxes

You may have heard of health savings accounts, but didn't understand how saving could lower your taxes. A health savings account (HSA) lets you deposit money that you can use to pay for a wide range of health care costs. You're not required to fund your HSA, but deposits up to $3,050 for individuals and $6,150 for families by April 15th can be taken as what's known as "above the line" deductions.

That just means you can take the standard deduction and don't have to itemize to get that above the line deduction. You can start an HSA regardless of the amount or source of your income, too. The only requirement is that you have one of the high-deductible plans that may be combined with an HSA.

With that in place, you can withdraw funds to pay for health care until you meet your plan's deductible. You can also pay for a range of different kinds of health-related services that may not be covered through your plan. For example, Ayurvedic Medicine, chiropractor and dental services, medical massage therapy and nutritional consulting are all eligible to be covered through an HSA. Be careful not to avoid the hefty 20-percent penalty for using HSA funds for unqualified expenses, though.

Shopping At Least Once A Year Brings Big Savings

After you've found a plan that works for you, it's tempting to just keep paying the premiums year after year even when you get a rate increase. In the long run, you'll probably end up paying more than you need to unless you compare new plans as they become available.

While your health is good, it's surprisingly easy to switch plans when you get notice of a rate increase. Never cancel your current plan until your new plan goes into effect, but it normally only takes a phone call to cancel with no hassle at all.

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