9. Benefit options with higher deductibles and co-insurance should charge lower monthly premiums.
10. For each plan, add the amount you will pay in premiums annually to the amount of the estimated medical expenses you will pay before your deductible is met (for instance, if you have a $500 deductible and estimated medical expenses of $1,000, you will pay $500 before the deductible is reached). This is your total out-of-pocket cost for health benefits each year.
11. Now look at the total out-of pocket expenses you have calculated for each health plan option. The health benefit plan with the lowest total is the most cost effective one for you!
Not all health insurance is the same, so examining these factors will give you the data you need to make an informed choice. Use AskHealthCue to get more information or have some of your more complicated questions answered.
Ask HealthCue:
Dear Cue:
I am enrolled in the Medicare Part D drug benefit. Recently I reached the limit of the initial drug benefit of $2,250, and will pay out of pocket until my expenditures reach $3,600. How can I save money while I am paying for prescription drugs myself?
- Jane in Florida
Dear Jane:
You can save money, but talk with your doctor or pharmacist first. Determine whether generic substitutes will deal with your needs as effectively as the brand name drugs you are now taking. You can also consider using a mail order pharmacy. Lastly, determine whether pill splitting is appropriate for you. For instance, a 20mg pill of Lipitor (a popular cholesterol-lowering drug) costs approximately the same as a 40 mg pill of Lipitor. If you buy the 40 mg, you can split the pill in two and essentially get two months prescription for the price of one. Your local drug store should carry small machines that split pills.
Dear Cue:
I have type II diabetes. Recently my doctor and I discussed changing medications to deal with my blood sugar problem. However, my health insurer will not pay for the increased cost. What can I do?
