Mr. Health Insurance of Maryland

Submitted by: Steve Klein

Health insurance premiums can really put a strain on your budget if you are among the millions of Americans who have to pay for their own coverage.  Rates this year alone are expected to increase by at least 8%.  With rising premiums and the expensive cost of health care staring you in the face, what can you do to keep your premium at an affordable premium without compromising quality?  Here in Maryland and Virginia, there are six major health insurance carriers competing for your business.  New plans are always being introduced, several which can save you 30% to 50% on your monthly premium.  Here are six ways you can avoid making the carriers rich while still protecting yourself and your family.

1. Hire a health insurance agent.  There are many independent health insurance brokers from all over the country who are licensed here in Maryland and Virginia, but you should only work with a local health insurance broker.  Why?  The premium is the same whether you use a broker or deal directly with the carrier.  Your local broker interacts with the carriers in your area on a daily basis and will be better able to serve you and assist you with any claims issues.  Also, as your broker I represent you, not the carrier so I will be ready to help you compare all the plans available in your market to help you make the right choice.
2. Choose a Health Savings Account (HSA). The purpose of any insurance plan including health insurance is to limit your exposure to financial risk.  The HSAs accomplish this at a reasonable cost and it works like this.  You pay for expenses at a discounted rate until you reach your deductible.  Once the deductible is reached, your carrier will pay 100% of all claims.  In exchange for a premium that is up to 50% less expensive that other plans, you accept responsibility for your medical expenses until the deductible is reached.  I was recently able to save a client nearly $1,000 a month on his premium by moving him from a traditional plan to the HSA.
3. Choose a Higher Deductible.  Most people are spoiled by having very low deductibles on their employer paid plan.  However, the lower the deductible, the higher the premium.  If you are young, the premium will be low even with a low deductible, but those of us who are older should choose a deductible of at least $2,500.  A plan for a family of 4 where the husband and wife are both 35 years old could cost $680 a month while an HSA would cost only $250 a month.  The savings clearly makes up for the higher deductible, especially if you don’t see the doctor very often.
4. Eliminate the Copayment.  Sure, it is only $20 or $30 for you to see a doctor,  but the cost of a plan with a low copayment and a low deductible can break the bank.  You only pay the contracted rate any way so the copayment doesn’t really save you any money.   A 35 year old husband and wife with two children would lower their premium from $430 a month to $280 a month.  If you are not constantly running to the doctor, the $1,800 annual savings could be a huge financial boon to you.
5. Shop and Compare.  Not only are there 6 different major carriers in Maryland and Virginia but each carrier offers a multitude of different plans.  The premium can vary widely from carrier to carrier so make sure you compare price and benefits before you make a decision.  That’s where your independent broker can really help you with one stop shopping and comparing rates and programs for you.
6. Review your policy annually.  Why?  Carriers often come out with new plans every year so it is wise to have your broker keep you informed.  Since the new plan will have no record of claims, it is often much less expensive than an older plan that has been on the market for awhile.  Simply staying informed of new developments in the health insurance market can save you 30% or more in premium dollars.

I hope at least one of my suggestions will help you lower your premium and maintain an affordable health plan without compromising quality.  Affordable health care exists, but you need to work with an experienced broker who will help you navigate the system and choose the plan that will best serve you and your family.  Compare plans and get your instant health insurance quote at www.mrinsuranceofmaryland.com or call me today at 866-654-4844.  Your health is my business!

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