Managing Your Health Insurance Costs.


Is there really such a thing as managing your health insurance costs? When it comes to selecting a health plan we are sometimes asked to choose between a low monthly premium / high deductible, or a higher premium / low deductible. A healthy person who doesn’t often use his plan might opt for the former in order to save money on his monthly premiums. But with the lower cost plan, if he requires a hospital stay or has an unexpected and perhaps catastrophic illness he might be required to satisfy a high deductible of $2,000.00 plus co-pays or co-insurance before his plan covers anything. On the other hand, the person who uses his plan frequently (or has a lot of hospital stays) may want to avoid the deductible first plan and opt for a “richer” schedule of benefits, a plan which does not require satisfying a deductible plus co-pays or co-insurance up front. The latter of the two choices means that his monthly premiums are going to be higher (perhaps much higher). But is there a way to avoid having to make a choice between the proverbial “rock and a hard place” when it comes to choosing between a low premium / high deductible health insurance plan or one which offers higher premiums and lower deductibles? The answer is yes. An inexpensive supplemental plan is the answer. But  how much does it cost and what does it do for you?

A. HOSPITAL INDEMNITY– Suppose a supplemental plan offered you $500.00 for every day you remain the hospital?

B. CRITICAL ILLNESS– Suppose a supplemental plan offered you a $10,000, $20,000 or $30,000 lump sum payout if you were to experience a catastrophic illness, i.e., heart attack, stroke or cancer?

Now let’s do the math. John didn’t want to spend $500.00 per month on a no deductible plan so instead he opted for the lower premium and added a supplemental plan for an additional $50.00. He ended up spending $300.00 for the health plan and and additional $50.00 for the supplemental, or a total of $350.00. Last month John suffered a minor a heart attack and spent four days in the hospital. Between the hospital indemnity ($500.00 x 4 days) = $2,000.00 and the critical illness plan, which offered him a $20,000.00 lump sum payout, his combined supplemental plans, A and B, provided him with a $22,000.00. lump sum payout. Subtract the $2,000.00 up front deductible and John still had $20,000.00 which he was able to put toward his out of pocket maximum. Even better, he had money left over to pay his mortgage and other incidental bills until his recovery is complete! Now that’s managing your health insurance costs!

BUT I ALREADY HAVE A HEALTH INSURANCE PLAN THROUGH MY PLACE OF WORK. CAN I GET THIS ANYWAY? The answer is yes. Whether you have a health plan through your employer or whether you purchase your own plan, you can always get a supplemental plan as long as you first have a health plan which meets minimal essential coverage under the guidelines of the Affordable Care Act. So what are you waiting for? Contact me today to find out more.

For more information on minimal essential coverage go to the blog section of and read 10 Essential Health Benefits by Anthony Michaels.

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About the Author:

Bob Rhodes enjoys a home in Dracut with his wife Andrea and their two sons. He spent the early part of his life in Maine and moved to Massachusetts in 1988 after serving in the United States Army with the 82nd Airborne Division. He graduated from Salem State College (University) with a degree in history. He loves reading, eating good food, going to the movies and traveling. Bob is inspired by the idea of helping his clients fulfill their goals of income security. He is an an expert in the Long Term Care and Health Insurance fields. He has been in the Insurance Field for several years and volunteers his time with local government and Trade Organizations.

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