How Can You Save On Tennessee Health Insurance?

The first way you may think of to save on Tennessee Health Insurance is probably getting the lowest premium available, but shopping by price alone could cost you more if you don't get the protection you need. Hospital care can cost more than $1,500 a day and major illnesses and injuries sometimes run into the tens of thousands of dollars. Fortunately, there are several ways to reduce what you're paying for health insurance in Tennessee without giving up needed coverage.

While it may be time-consuming, comparing plans from different insurance companies is your best bet to find the coverage that fits your situation without paying top dollar. Rates on health insurance for Tennessee vary considerably and there are hundreds of options available. To cut your search time, take advantage of online Websites that let you compare quotes from a variety of companies.

When you're comparing insurers that are not familiar, rely on independent rating organizations to help you find stable, dependable companies. A.M. Best, Moody's and Standard and Poors rank insurers based on their financial strength, which can help you weed out bankrupt companies that won't be around when you have a claim that needs to be paid. Look for companies with ratings of A- and higher.

Medical Needs Determine Which Tennessee Health Insurance Plan To Buy

Even though there are hundreds of Tennessee health insurance plans, there are really only a few types of coverage. Your medical needs determine which type of plan can save you the most on health care costs.

If you need to see doctors frequently or you regularly require hospital care, a high-deductible plan could cost you a lot in spite of low premiums. In exchange for low monthly premiums, high-deductible plans require you to pay for part of your health care every year. These deductibles, or the amount you spend per year before your insurance coverage begins, range from $1,000 to $30,000. If you have high medical bills in most years, meeting a deductible will quickly out strip what you save in low premiums.

If you usually only need regular preventive care like an annual exam, flu shots, and screening procedures for cancer like colonoscopies and mammograms, a high-deductible Tennessee health insurance plan may well save you money. Any plan you buy after health care reform passed on March 23, 2010 pays for 100 percent of preventive care even before your deductible is met.

Certain high-deductible plans can be combined with health savings accounts. With a health savings account (HSA), you can earn tax-free interest on savings to pay for medical bills that aren't covered by your Tennessee health insurance. If you withdraw money for qualified health care, you never have to pay taxes on it and you can take a tax deduction for the expense to lower your taxes.

You'll also find "co-pay plans" when you're shopping for insurance. Deductibles for these plans range from $500 to $5,000. After you have met that deductible, 80 percent of your medical bills will be covered and you'll have to handle the remaining 20 percent up to a predetermined limit, which is typically around $10,000. After that, your coverage will increase to 100 percent up to a predetermined limit.

With co-pay plans, you don't have to meet a deductible to see a doctor. If you need recommended preventive care, you won't have to spend anything for the doctor visit. If you need more than preventive care, you'll probably have to pay $25 or $35 as a co-pay.

These plans usually have co-pays on prescriptions, too. Those range from $10 to $50. Keep in mind that only plans purchased after March 2010 offer preventive services that are 100-percent covered.


------

By Wiley Long - President, eTNHealthinsurance.com - Tennessee's leading independent online health insurance agency specializing in individual and family Tennessee Health Insurance. Get instant Tennessee Health Insurance quotes, compare plans, apply online, and save your hard earned money!