Thanks to your health insurance policy, you can receive routine checkups, specialist consultations, lifesaving medications and necessary procedures for a modest monthly cost. Premiums may be rising because of higher plan costs or reduced employer contributions. Instead of dropping coverage or paying more than you can afford, use these six practical tips to stay healthy and balance your budget.
1. Review Your Benefits
Does your current plan include vision, dental, or prescription coverage that you rarely use? Dropping optional riders you don't need can reduce your monthly premium.
2. Shop for Private or Government Exchange Health Insurance
Don't automatically accept employer coverage if it has higher premiums or fewer benefits. Compare private plans and marketplace options to find a balance of cost and coverage that fits your needs.
3. Increase Out-of-Pocket Expenses
If you're generally healthy, electing a plan with lower premiums and a higher deductible can save money. Your deductible and copays will be higher, but your monthly costs may be substantially lower.
When evaluating higher-deductible plans, consider how programs such as Aggregate Deductible Programs might affect your total out-of-pocket exposure.
4. Consider Joining Your Spouse's Policy
If your spouse or partner has employer-sponsored coverage, compare the cost of joining their family plan with maintaining separate individual policies. Switching to family coverage can sometimes reduce overall household costs.
You should also check your options after qualifying life events, which may allow changes to your coverage. Common qualifying events include:
- Marriage
- Childbirth or adoption
- Legal separation or divorce
- Death of a spouse or dependent
5. Rethink Insurance Options When You're Laid Off
If you lose your job, you may be eligible to continue your employer plan temporarily under COBRA, paying the full premium plus a small administrative fee so coverage does not lapse.
COBRA can be expensive when you are between paychecks, so use the 60-day decision window to compare private alternatives and other plan types, including options such as Large Deductible and Self Insured Retention (SIR) Placements, to determine the best financial choice for your situation.
6. Get and Stay Healthy
Simple habits—regular exercise, a balanced diet and quitting smoking—reduce how often you see the doctor and can lower health costs over time. Employers may also offer wellness incentives that reduce premiums or provide rewards for healthy behaviors.
This is a good time to review your health insurance choices. With these six tips, you can save money, protect your health and stay on budget in the coming year. If you need help weighing options, talk to an agent.
Frequently Asked Questions
Can I change plans outside open enrollment?
You can usually change plans after a qualifying life event such as marriage, birth, adoption, divorce, or loss of other coverage.
Is COBRA coverage the same as my employer plan?
Yes, COBRA typically continues the same plan, but you pay the full premium plus any administrative fee, which can be costly without employer contributions.
Will a higher deductible always save me money?
A higher deductible lowers monthly premiums but increases your costs when you need care; it saves money only if you have low health expenses during the year.
Should I join my spouse's plan or keep my own?
Compare total household costs, covered benefits, provider networks and any employer contributions to decide which option is more cost-effective.