Kids Health Insurance is often one of the most expensive components of a comprehensive health care plan for kids. Unfortunately, many parents simply can’t afford the high premiums required to secure adequate coverage. However, there are several ways that you can lower the cost of your kids health care plan without compromising the quality of care. In fact, by making a few simple changes, you may even save money on premiums and save the policyholder’s health insurance from cancellation altogether.
First, you must understand the basics of how insurance plans for kids work and what factors influence premium costs. One of the most significant contributors to health insurance costs is the person’s immigration status. If a person has been in the country illegally, their health insurance costs will skyrocket. Conversely, if a person is in the country legally and has established an account with the local health insurance provider, their premium costs will typically be less than those of illegal aliens.
Many people have heard that they may be able to qualify for lower premiums by increasing their household income limit. Increasing your household income limit doesn’t necessarily mean that you’ll automatically shoulder the entire increase, however. For example, some health insurance companies charge an additional co-pay for each doctor visit or treatment. If your family makes enough money to reasonably expect the premium cost to be double what it would be for someone with a low income, then you may want to consider trimming back your visits to save money.
You may also want to consider raising your deductible. A high deductible does not mean that you’ll have to pay more in premiums – it just means that the government will have to cover at least some of the cost before the insurance company takes over. For instance, a $500 deductible may not seem like much, but if you don’t plan to make any major health care claims for a year or two, you may still save money. Raising your deductible can also help you keep the monthly premium low because you’ll have less of an interest-free loan to repay when the time comes.
One thing to consider is whether you’d be better off having a higher deductible and keeping your monthly premium lower or choosing a higher deductible and paying more in premiums. Some people who already have a high annual income would do better by saving the money for when their children start school. Other people are better off saving the money for when they have a child so that they can pay for the basics like daycare. If your family likes to go out a lot, but you’ve got an income that isn’t keeping up, it’s still probably a good idea to put more money away for your kids’ education. And if you are willing to forego some conveniences to save money, you might even find that you like your current policy better!
Your kid’s Health Insurance is more than just a way to protect them from high costs. It is a part of the family like food, clothing, and shelter. When you shop around for Kids Health Insurance, explore all your options, and choose what would work best for you and your family. Your kids would pay the bills, and you’d be paying to protect them too.