How to Save Money on Health Insurance

from on 02 Sep 2009

Whether you're single or have a family, one of your biggest expenses is probably health insurance. Hey, you're not alone. Health insurance costs seem to increase every year for most of us. According to US News, families paid an average of almost $3,300 for coverage in 2007.

Think that high cost gives you an excuse not to have health insurance? Think again! Unpaid medical bills are one of the biggest causes of bankruptcy. Not having health insurance isn't an option.

But here's how you can save money: consider switching to a Health Savings Account (HSA).

HSAs are great for people who don't go to the doctor often. If you're young, healthy, or have grown kids, then an HSA can be an excellent alternative to the usual, expensive health insurance plans of PPOs and HMOs. A typical HSA can save you hundreds of dollars a month while still providing you with quality health coverage.

How Much Can I Save?

Well, that depends on you and your needs. Here's how much one listener saved:

I just wanted to thank you for saving my daughter thousands of dollars on health insurance. Your Endorsed Local Provider [ELP] set her up with an HSA. She's saving $350 a month on premiums for a family of four!
—Bonnie in Florida

With the money you'll save, you can pay off any debts or invest that amount toward your retirement.

Getting Started With an HSA

Many companies now offer HSA plans along with their traditional plans. If you're company doesn't, then talk with a health insurance ELP about setting up a private HSA for you or your family. Often times a private HSA can save you more than your company HSA.

Just remember that your individual health needs and the area in which you live can drastically affect your options. Before you make any change to your insurance coverage, it's best to get the advice of a health insurance ELP.

Is an HSA a good option for you? Ask one of Dave's health insurance ELPs.

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