Health insurance is one of the most expensive bills that consumers face every month. Whether your employer contributes to part of your health care costs, or you’re paying 100% of the premiums yourself, there are ways to lower your premiums and still maintain an acceptable level of coverage for you and your family. Here are two major tips to keep in mind when buying health insurance:

1. Opt for Group Health Insurance whenever possible

Group health rates are almost always lower than individual health plans. That’s because the insurance underwriters are able to spread their financial exposure over a larger group of people. Group health insurance is the type that’s offered by employers. But even if your employer does not offer health insurance, or you are self employed, group health insurance plans may be available through your credit union membership or through professional and business organizations that you are eligible to join.

2. Choose the health insurance type that’s best for you

The three traditional types of health insurance are:
· Fee-For-Service (standard Health Insurance).
· Health Maintenance Organizations (HMO).
· Preferred Provider Organizations (PPO).
The difference between how each plan works, and the premium costs associated with each plan, are what determines what works best for you.
If being able to choose your own doctors is important to you, and you want to be able to see specialists without having to be referred by a primary care physician, then the Fee-For-Service or PPO plan will probably suite you best. You’ll also want to consider either of these plans if you travel away from home frequently or if you have dependant children who are attending school away from home. Premiums are usually higher for these plans.

A HMO, on the other hand, is often less expensive but your medical service options are limited. You can only choose from among doctors who are in the HMO network, and you’ll need to see your primary care physician for approval before you can go to a specialist. Another concern is that a HMO may decide that the treatment you are seeking is not medically necessary and your request for treatment can be denied. HMOs rarely work well for people who travel or have family members living away from home.