Health Insurance Articles

All health insurance providers have underwriting criteria, whether it is a for profit organization or not.

One of the major factors effecting your health insurance is your age.  In general, the older you are the better the chances are that you will get sick or will need some form of medical treatment.  Because of this, the older you are the more expensive your insurance premiums will be.

Many people with concerns about health insurance are not just worried about themselves but their family as well.  Some insurance companies rate their premiums based on family size.  Other insurance companies have a basic family rate they charge no matter what the size of the family is.

In terms of life insurance, women tend to  pay lower rates than men do.  For health insurance, women’s premiums are generally higher.  This is due to the fact that health insurance statistics indicate that females have a tendency to need more medical care than males.

Your health history also plays a significant role in determining the cost of your health insurance premium.  Insurance operates on the basis of many statistical probabilities.  If your health has been poor in the past that means that you are more likely statistically to have higher health insurance expenses into the future, which results in either having to pay higher insurance premiums or not being able to obtain insurance at all.

Your occupation is also an important factor when it comes to health insurance.  The higher the probability is that you will suffer a work related illness or injury, the more likely you will be charged a higher premium to cover these risks.

Your health insurance application will also ask you questions regarding personal habits such as drinking and smoking.  If you are a heavy smoker or drinker, your premiums are going to be higher than someone who isn’t.

You need to be aware of certain provisions in insurance contracts.  Insurance policy exclusions remove certain procedures and other types of health care from coverage.  It is critical that you understand all the exclusions contained in your policy.

One common exclusion is preexisting conditions.  These are often defined as symptoms that a prudent person would seek diagnosis, care or treatment for in a five year period, or a condition where a physician either gave a recommendation or provided care for.

Many health insurance policies exclude coverage or injuries or illnesses that are caused by narcotic or other types of controlled substance abuse that was not prescribed by a doctor.

Some policies have an exclusion of benefits for emotional and mental illnesses that do not have a bodily cause.  Other policies may provide some limited benefits for certain items sch as psychotherapy.  It is important that you understand all the details of your health insurance policy, particularly if there is a possibility that you or a member of your family may need the services of a psychologist, psychiatrist or other form of mental health professional.

If your illness or injury qualifies for workers  compensation benefits, your own insurance will most likely exclude paying any of these medical bills.

Health Savings Accounts (has), which are also called Medical Savings Accounts, can be a great way to save on medical and health insurance costs.  An HSA offers a solution that can help you control the high price of health insurance.  You do this by paying less for your medical insurance and saving some of your own money to go towards paying for medical expenses.  It works together with a medical insurance policy with a high deductible and helps you to save money on your health care expenses in several different ways.

A Health Savings Account is a savings account that is tax-sheltered.  It is intended to help with the high cost of health insurance premiums.  The HSA was established with the passage of the Medicare Prescription Drug, Improvement and Modernization Act of 2003.  It was intended to improve upon the Medical Savings Account (MSA).  The HSA is like an IRA for medical costs and has similar regulations and rules.

One common way to save on health insurance premium costs is to choose a higher deductible.  An HSA works hand in hand with high deductible insurance plans to help you save money on medical expenses.  To do this you can enroll in a health insurance plan with a high deductible.  This can be done with either an employer or individual insurance plan.  Next you open an HSA, with its advantages and restrictions that are similar to an IRA.   You can contribute to your HSA each year up to a maximum amount.  Deposits made into your HSA are not subject to tax when you make the contribution and can be used for medical expenses at any time tax-free.  You can use funds from your HSA to pay for insurance policy deductibles as well as for medical expenses not covered such as vision, dental and alternative medical procedures by your health insurance plan.

You will save money with your HSA in two ways.  The first way you will save, is that you will pay a lot less for health insurance.  This is because you will be paying from your savings.  When you choose a high deductible, your insurance premium is less expensive.  You will also save money because the money you contribute to your HSA is all tax deductible.

If you medical costs in a year are more than your deductible, your health insurance policy pays your medical expenses just like any other insurance policy would.  It works the same as any other health insurance policy.  It’s just that your deductible is higher, but you are paying for it with tax-deductible money.

The money that is in your HSA belongs to you.  If you end up not needing it for medical expenses in a particular year, the amount remains in your account and either earns interest or can also be invested at your direction.  You will still be eligible to make the maximum contribution in the following year and the extra amount in your account does not change your deductible in any way.  You are not made to pay more medical costs before your health insurance coverage begins.

Any money that you don’t use for medical expenses stays in your account and earns interest that is tax-free.  The only time you will be required to pay taxes on the money in your HSA is if you end up withdrawing it and not using the money to pay for medical expenses.