Better Health Insurance You Probably Don’t Know About

Healthcare is expensive. But for you and your family, it may be necessary.

The average monthly cost families pay for health insurance is around 2000 dollars. This is your major medical coverage and is called a defined contribution plan. They also eat into your income.

You’re probably familiar with these plans. You have copays for everything. You have a high deductible before your health insurance kicks in. And if you go out of network, you're paying higher costs for using these plans.

Between premiums and copays, you’re spending too much money on your healthcare needs.

That’s the major difference between the health insurance you know and the health insurance that works for you. Defined benefit plans pay defined amounts for almost any medical service you need.

And with some smart shopping, these plans can put any excess money into your pocket.

How Does it Work?

From the moment you're enrolled in this plan, you're aware of what will be paid for and how much you'll receive for the services. 

You will have access to an information packet that outlines everything. There are never negotiations on what will be covered unless it's for a service for something preexisting.

Once you need medical services, you can use this plan like a traditional plan and give the provider a card. Or you can pay out of pocket and be reimbursed. Which could be the most financially beneficial for you, but we’ll get into that further in.

These types of plans are usually PPOs (preferred provider organizations). Meaning, you can go in and out of network. But you are never penalized for going out of network.

Most major carriers who are PPOs will have extra fees or a separate deductible for going out of network.

Smart Shopping

These plans usually feature in-network discounts for going to their list of providers. So 99% of the time, the cost the provider charges will be less than what will be paid out to you, resulting in extra money in your pocket.

Similarly, you can pay cash for services and the provider will almost always charge less than if you used insurance. They have free rein when billing insurance, but they know they don’t have that type of freedom with cash payers, so they make it more affordable.

In the same way, it will result in the excess funds going into your pocket.

If you need anything expensive done, you can use websites like www.healthcarebluebook.com. They have a price-searching tool and user reviews on providers.

And since you’re not penalized for going out of network, you can match up how much your plan pays to the costs and receive money for the services you need.

Average Cost of Defined Benefit Plans

Like all health insurance the price ranges widely from person to person. 

When calculating prices, health insurance companies take into account your ages, your family size, if you’re a smoker, and if you have previous health conditions or take any prescriptions. This is the same for all companies.

The price compared to defined contribution plans can be similar, but many times cheaper. These types of plans are highly customizable, allowing you to fit your needs nicely into your plan.

Learning about health insurance is one thing but making the switch is entirely different. Knowing that your health insurance isn’t trying to drain your income and can financially help you is liberating. If you want to know how much it would cost, we’re here for you.