Health Insurance Solutions For Parents
As a parent, you want the best healthcare possible for yourself and your children. Unfortunately, health insurance costs can be daunting, especially when your policy jumps from one or two people to family coverage. Luckily, there are solutions that can help make healthcare more affordable and accessible. Here's a look at some strategies that can help you save on your monthly premiums.
High Deductible Plans
One of the most popular strategies for affording health insurance is to purchase a high deductible plan or HDHP. These plans require you to pay a higher deductible but offer lower monthly payments. A deductible is an amount you agree to pay for your medical expenses before the health insurance kicks in. The higher the deductible, the lower the monthly premiums. This makes them an ideal option for families on tight budgets who want access to quality healthcare.
High Co-Pay Plans
Another solution is to purchase a plan with higher co-pays, meaning you will pay more for each doctor's visit or procedure. In other words, instead of agreeing to split your healthcare costs at a 90/10 rate with your health insurance provider, you could opt for an 80/20 co-pay, where you contribute 20 percent to each bill. While this may sound like an expensive option, it can actually be less expensive than purchasing a traditional low premium/low deductible plan if you don't anticipate needing many medical services throughout the year.
Flexible Spending Accounts
Another way to save on healthcare expenses is by taking advantage of flexible spending accounts or FSAs. When paired with an HDHP, an FSA allows you to set aside pre-tax money specifically for medical expenses you anticipate throughout the year, such as co-pays, deductibles, eyeglasses, contact lenses, and dental care, including braces. Some employers even add money to your FSA as part of their overall benefits package.
Health Savings Accounts
A health savings account or HSA is similar to an FSA but with a few key differences. An HSA is stricter on what you can spend the money you set aside on. However, the IRS allows that pre-tax money to roll over year after year, creating a pseudo-investment vehicle for future healthcare expenses. Currently, you are allowed to set aside $7,300 annually as a family.
Being an informed consumer is essential if you want to find affordable health insurance solutions for yourself and your family. Research high deductible plans, high co-pay plans, FSAs, and HSAs that are available to you to ensure that you get the coverage you need without breaking the bank. Finding affordable health insurance as a parent takes time, but it's not impossible.
To learn more, contact a health insurance provider in your area.