What should I do if my health insurance premiums go up? Part Two…

Following up on yesterday’s post about what to do when you’re hit with a health insurance premium increase, here are five more answers to commonly asked question:

Question: “In order to find affordable coverage, I’m looking at plans with higher deductibles and more restricted benefits. Are there dangers in cutting too much out of my plan?”

Answer:  Maybe. Do your homework and make sure you know what you’re getting. Be sure you understand how costs are shared between yourself and the insurer under any new plan. Look at the deductible and make sure it’s something you could afford in an emergency. Look at the annual maximum out-of-pocket amount, too. That’s the most you’ll have to pay in a single year (including your deductible and other charges like coinsurance, but not counting your monthly premium) before the insurance company takes over all other covered expenses.

There may be certain benefits you can do without. For instance, if you don’t use brand-name prescription drugs, you may be able to save money with a plan that limits coverage to generics. Some people may be happy to go without chiropractic care. And single men may not need a plan offering generous maternity benefits.

Question: “If a pre-existing medical condition is preventing me from changing insurers, what should I do?”

Answer: Look at other options from your current insurance company. Often, when informing you of a rate increase, your insurance company will also offer you alternative coverage options. These options typically don’t require a new application or a review of your recent medical history. Less expensive options may require greater cost-sharing (higher deductibles), but they’ll allow you to maintain your coverage and access to discounted rates for medical care

If your insurer did not offer you an alternative plan when notifying you of a rate increase, you still have the option to contact them and attempt to get yourself moved onto a policy with a lower monthly premium. Work through your licensed agent for help. Note that such a move will frequently require you to increase your deductible.

Question: “Do I have to keep everyone in my family on the same health insurance policy?”

Answer: Not necessarily. If your family is on a shared policy that has increased its rates, it may be less expensive to place different family members on different plans, or even with different insurance companies, based on their needs.

For example, if one member of a three person family has a pre-existing condition, you may be able to keep that person on the original plan and shop around for a different, less expensive option for the others.

Two things to be aware of: First, insurers don’t always allow you to change the number of family members on a policy, so make sure you don’t cancel coverage until you’ve cleared the medical underwriting requirements for your new policy. Second, depending on the products available and the rules in your state, you may have to wait for a state-sanctioned open enrollment period in order to enroll a child in a new individual plan of his or her own.

Question: “What if I can no longer afford my premiums and I’m unable to qualify for a cheaper policy?”

Answer: Don’t go without some form of health insurance coverage.

Most people are unaware of all of the free or low-cost public programs available to them. If private insurance is no longer an option for you, contact the non-profit Foundation for Health Coverage Education (FHCE) at coverageforall.org and find out what free or low-cost health care options are available to you in your area. The federal government has also created a resource site for people with pre-existing medical conditions: www.pcip.gov.

Question: “Health insurance can be complicated. Where can I turn for some free advice?”

Answer: If you have questions that you can’t answer on your own, take the time to talk to a licensed agent. To know that you’re getting seasoned advice, make sure you work with a licensed agent like eHealthInsurance that represents a large number of major health insurance carriers and offers a wide variety of products.

It doesn’t cost anything extra to work through an agent. You will pay the same monthly premium for the same plan whether you buy it from a licensed agent or direct from the insurer. So, for no additional cost, shopping through a site like eHealthInsurance.com can give you objective, unbiased help to find the right plan. You can speak with licensed agents at eHealthInsurance toll-free at 1-800-977-8860.