Comparison shopping is the key to saving money on healthcare plans.

Healthcare plans have become one of the essentials in life. Many families are finding it imperative to have healthcare coverage. Finding the right plan to fit your needs—at the right price to fit your budget—can be a challenge. But, with a little understanding about what they cover and the expenses incurred it can be easier than you think.

Know the Different Types of Expenses in Healthcare Plans

There are several very specific expenses to healthcare plans which need to be considered when shopping for the right plan for you and your family. This is also where the bulk of your savings can be realized. The expenses are:

- The monthly premium for coverage

- The annual deductible for services

- The amount due for specific services

The monthly premium for coverage is the amount of money you spend every month whether you use the coverage or not. These charges can range from as little as $100 a month (for insurance provided by your employer) to several hundred dollars a month (for individual providers). Here is one area that should be considered when comparison shopping because the plan with the lowest monthly rate may not be the best plan.

The annual deductible for services is the amount you spend before the insurance begins paying for the services. The standard amounts can range from $250 per member or $500 per family to $1,000 per member or $1,500 and higher per family.

The amount due for specific services is the amount you pay for each service received. For example, some of these costs could be the $20 co-pay when going to the doctor’s office; $50 co-pay when going to a hospital emergency room; or $10 co-pay when buying a prescription.

Do a Thorough Comparison by Figuring Your Annual Medical Expenses

With all these different factors, how do you choose the right one for you and your family that is within your budget? It is not as tough as one might think if you start figuring the expenses on an annual basis.

First, keep in mind what you spent last year and, regardless of whom you had coverage with, the comparison requires everything to be equal. First, most healthcare plans offer the same services: doctor’s office visits, ER or medical center coverage, accident coverage, prescriptions, and visits to specialists. Some will offer dental plans or eye exams; if you need these services, add them in.

Second, chose three providers who offer the services your family needs and put them on a spreadsheet. Add columns for monthly premiums and deductibles; then figure in the costs for 12 office visits, two ER visits, and 12 prescriptions over the course of a year. (Try it again, and this time change these figures to better suit your needs.) In addition, add in one week of hospital care and one specialist. How did the numbers stack up? Is the lowest premium really the best deal or does its deductible or ER visits balance it out? Now you have a starting place.

Hidden Healthcare Plan Costs

With your overall healthcare plan in place, the next step is to look at your budget for other hidden healthcare plan costs. This actually has nothing to do with your current plan, and everything to do with your other insurance plans. If you are confident that your new plan will cover all your needs, cut the so-called hidden healthcare costs of your other plans. These include the following:

1. Auto insurance plans that have a healthcare coverage option.
2. Additional insurance plans for your children’s sports and after school activities.
3. College student insurance plans if your child is still covered under your plan.
4. Additional prescription plans, eye wear plans, or dental plans that are or can be covered under your overall policy; including some life insurance plans through organizations.
5. Any other plan that has a healthcare coverage option that you are paying for but are covered for under your overall policy.

A la carte

Sometimes finding the right insurance coverage is just not in the budget; so, go a la carte. You can get a six-month dental plan, have all your work done, and then cancel it. You can do the same with some pharmacies who have short-term prescription plans or some companies who allow you to change your plan every six months instead of every year. If you know you are going to be planning for a new baby, get the maternity package before you start, then change it when the child is old enough (usually about 30 days) to get her own package.

Matching the healthcare plan to your needs, both current and future, will allow you to determine what you need, what you want and what you can afford.

Additional Resources

For more information, visit these Web sites:

• Parents.com at http://www.parents.com/family-life/work-money-politics/family-finances-101/save-money-on-health-care/
• Money Matters at http://cbs13.com/moneymatters/money.matters.pension.2.789528.html