California Health Insurance Quotes and Blog

Most people focus on the price when they are shopping for health insurance. Price is important but a very important part of the buying decision is weighed upon how much it will cost when it’s time to go to the doctor and exercise the almighty co-pay. This seems to be the most important factor for some people who buy health insurance. Buying a high priced plan with low co-pay and the assumption it will cost you less when you go to the doctor’s office is a big mistake. Very often the higher priced plans will cost you the most when services are needed. So I’ll try my best to help you understand why this is.

I’ve been a California Health Insurance Agent since 1994. And I can’t get over the fact that so many people are so hung up on having a co-pay in order to go to talk to the doctor. They feel that a health plan is no good without one. Co-pays I think are totally overrated. First let me help you understand what a co-pay is. A co-pay, in regards to a doctor’s office visit is the dollar amount you are charged JUST TO TALK TO THE DOCTOR. Let me clarify. Let’s say you have a PPO plan with a $40 co-pay. That $40 lets go into the doctor’s office and covers only the conciliation. Once the doctor stops talking and starts any extra procedure or orders labs or any radiology, you start paying your deductible if you have one or the percentage that you are responsible for.

The amount of premium a policy holder pays in order to have a co-pay can easily be 25% higher than having a policy with no co-pay. Let’s say a 34 year old wants a policy with a co-pay and that policy is $85 a month. And this almighty $85 health plan only lets you see the doctor on a co-pay of $40 3 times per year. If a 34 year old bought health insurance without the co-pay benefits only $69 a month, and that policy covers all the same major medical bills like labs, radiology and hospital stays. It just doesn’t have the co-pay benefit. (Source www.MattsInsurance4CA.com )

At this point I sure I’ve lost a few readers because math scares them. Or because they feel that having a plan with no co-pay is absurd. Well for those of you still reading you are going to find a little secret. High deductible health plans give you the most bang for the buck. Just do the math. High deductible health plans like HSA qualified health plans cost less per month and have the least amount out of your pocket if there’s a big clam.

The average doctors’ office visit/consultation is about $58. Not far off from a $40 co-pay. And the annual savings on my health insurance policy with no co-pay is huge. What if that 34 year old co-pay type policy holder doesn’t go to the doctor all year? That’s right. You’re paying at least 25% more for something you never used. Kind of like that new treadmill/clothes rack you got at Costco.

Why are people so afraid to pay for a doctor’s visit themselves? I don’t know. Skip the co-pay plans and focus on the deductible and out of pocket max. It’s really no big deal. All it takes to save a huge amount of money is a little smarts.

You’ll thank me later. (Source: Monk)

One of my friends was complaining about the increasing cost of health insurance policies in California and when I asked him how much it cost him he threw me a figure which shocked me. No wonder he was complaining about the cost and I was feeling little sad for him because I thought he had some other medical condition that made his health insurance so expensive. Unable to restrain myself I asked him about his premedical condition. He responded with a guffaw, “What medical condition? I don’t have any thing like that, what are you talking about?” I was totally confused now and I told him I wanted to see his policy document and when I saw his papers I understood why his health insurance was almost double the cost of my policy.

He had opted for plan with the best benefits possible probably thinking that it would save him a lot of money. He had opted for a health plan that covers physician visits at a $5 co-pay, a very low ($2) co-pay for prescriptions etc. I explained to him how we can safely cover these cost and reduce our health insurance premium. You should opt out of these “rich benefits” when you enjoy general good health that does not require visits to your physician on weekly or monthly basis.

The function of health insurance is to support people when they have to face a huge medical bill that has resulted out of some unforeseen circumstance or some major illness or hospitalization. It makes sure that we are not deprived of any medical attention that we require in these circumstances just because our resources were low during the time of emergency. It also helps us to keep our savings and other assets intact. We can keep our health insurance premiums low if we keep the policy to fulfill this basic function rather than opting for coverage that promises to take care of even the most basic things like doctor visits.

When I pointed this out to my friend he too readily agreed with me and regretted about not discussing this with me before signing up. I also asked him how many quotes he got before signing up. He was surprised with my question but he understood that he had lost few more dollars in that. I introduced him to Mattsinsurance4ca.com where we can get instant health insurance quotes and compare those quotes free of cost. I managed to cut down a considerable amount of the cost by comparing several plans from several health insurance companies’ side-by-side. He got the best value for his policy with additional riders at a discounted price.

To hook up to new customers, insurance companies are ready to quote several different health plan designs with varying premiums and benefits to add value to their customers. Discussing your needs with an independent health insurance agent will help you get a good deal from the insurance company. And using the services of broker does not cost you the consumer any more than if you went directly to the insurance company.

Don’t fall into the low co-pay trap. Talk to your agent about those low first dollar benefits. Don’t let your health insurance company fool you!

To learn more about California Health Insurance click here.