Saving Money

Cut Healthcare Costs: Part II

While it can be difficult to afford health insurance these days, it can be risky, both financially and health-wise, to go without. In fact, just over half of Americans who file for bankruptcy list medical bills as a significant reason for filing. And putting off routine medical care may lead to more serious (and expensive) health problems down the road. Health insurance is one way to help pay for the care you need, and perhaps even keep your family out of bankruptcy.

An estimated 43 million American families today, many of them middle class, are going without health insurance, because of the rising cost. Even those who get health insurance through their employer may find they have to pay more out of pocket expenses.

For example, one study by the Kaiser Family Foundation and Health Research and Educational Trust found that workers now pay $2,412 a year toward the premium for family coverage and $508 toward the premium for single coverage on average.

While there's no easy solution to the health insurance dilemma, there are strategies you may be able to use to help make it more affordable. Here are places to start:

Shop Frequently: Websites such as healthinsurancesearch.com, ehealthinsurance.com or insweb.com can be good starting places.You should also talk with an experienced local insurance agent who is knowledgeable about programs in your local area. It can also be helpful to call your local Chamber of Commerce to find out if they have a health insurance committee that can provide information or referrals. And ask friends and relatives about their health insurance. They may be able to refer you to a company or insurance agent who can help you find a better plan.

Understand Your Coverage Options: You'll likely have the choice of major medical, HMOs, PPOs or POS plans. It's important to pick one that fits with your budget and medical needs. Generally, the more flexibility you have in choosing doctors and facilities, the more you'll pay.Weigh the cost and benefit of those choices.

Don't Go Without: Do what you can to avoid a gap in coverage, or you may lose the protection of the Health Insurance Portability and Accountability Act of 1996. HIPAA places limits on the ability of health insurance companies to exclude pre-existing medical conditions.To be eligible, you must have been part of a group insurance plan and meet other requirements to qualify.

Even if you can't go from one group policy to another, a short-term individual policy may be helpful to keep up with any unexpected medical expenses. If necessary, look into a short-term medical policy until you start another job or can find other insurance.You may not get the best coverage, but it may be better than no coverage at all.