Over-Using Your Health Insurance

When reviewing health plans and evaluating cost, keep in mind that health insurance is not designed to cover every penny of health care.

Everything is fine under the sun on an open credit card, but not when paying the bill. But you.

The purpose of insurance is to cover sudden very expensive losses. It’s about making you whole again and not having the financial responsibility of a ton of money to do it. Somehow, over the last 60 years, we’ve all agreed that the traditional plan has to pay for everything.

Health insurance is often the only insurance product that pays for first dollar coverage, such as doctor visits and prescription drugs. The healthcare system played the system with the big bank account paying the bill, not the little guy. Tables turned…

Employees are more responsible for their healthcare, paying more for premium dollars and higher costs from their checks. Employers should engage their employees to be more proactive in healthcare. Here are a few ideas:

  1. Don’t rush to the emergency room or doctor’s visit for every little thing. What happened to home remedies or waiting to see the doctor instead of running to the emergency room? If you have kids, this will save you thousands a year.
  2. Try to save money on medicines by finding alternatives. Sometimes skipping medication may not affect your health, but it will get you back to the doctor. The other thing you can do is shop. Just because they’re affordable doesn’t mean they’re the most cost-effective.
  3. Just because your doctor recommends a test doesn’t mean you should skip it and get it done. The doctor has been through school for many years, but at the same time they are trying to do tests to protect them and get paid. Ask more questions to see if this is the right thing. Just like the items your mechanic recommended. This is your money.
  4. If you are planning a procedure, take a look around. Many new facilities are emerging to help cut costs, from outpatient testing to outpatient surgical facilities. The hospital is not the cheapest. Far from it. This drives the price up for you and the insurance company.
  5. You don’t need to go to a state-of-the-art teaching hospital for most things. There is a time and a place for the advanced care that some dominant teaching hospitals bring to the table. However, for most things, people overdo it and overcharge.
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In the end, it will cost you more money either as out-of-pocket expenses or as a premium. There is no free lunch.

About Lily Hammond

I have been working as an insurance consultant in my own insurance agency since 1998. Because I've been doing this for so long, I know every detail and I'm here to help you. You can find my e-mail address and work phone on the contact page.

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