21 Secrets To Discovering Affordable Health Insurance, Part 1

No doubt about it, finding health insurance has become much more difficult in the last ten years than ever before. That said, if you follow the advice in this multiple part series, you will discover many low cost health insurance options. This is part 1 of 4.

Focus On "Affordable" Not "Cheap"

The single biggest mistake that people make is actually confusing "affordable health insurance" with "cheap health insurance". You should not let yourself be shortchanged by companies offering the lowest price as you hunt for health insurance.

Of course, I understand that you want the lowest rate possible. However, I suggest that you focus on the best value. Just search for "cheap health insurance" and you will be slammed by hundreds of companies promising "the lowest rates around." The problem with these companies is that you will most likely discover that they won't pay for certain things that you would think would be normally covered. In essence, "You get what you pay for."

So, my number one rule when shopping for affordable health insurance is that you only sign with companies that receive an A rating or higher at the two most reputable insurance ratings services: AM Best and Standard & Poors. 99 times out of 100, the least expensive plan from an A rated company is much better than the most expensive plan from a B rated company.

A company with an A rating gives you peace of mind that you will be able to speak to someone when you need to, that you will be paid in a timely fashion when you need it and that you will be treated fairly.

One question that I always pose to people searching for health insurance is this: if you had to have a brain operation, how would you choose the surgeon. Would you look for the cheapest one you can find or the best one you can find?

Of course, you would look for the best one that you can find, right?

However, you might find that the best neurosurgeon is not at all affordable. So you work your way down the list until you discover a great neurosurgeon that you can afford while still being assured that they are one of the best.

My point is that you would not even consider letting a doctor like Dr. Nick from "The Simpsons" do the surgery so why would you even choose an insurance company run by his cousin?

Don't Pay More To Big Pharma Than Necessary

The top 10 pharmaceutical companies in the world rake in over $76 billion in net profits annually. This includes #1 Johnson & Johnson, #2 Pfizer and #3 GlaxoSmithKline. And that's just the top 10.

Now, when they develop a new drug they have a patent on it for seven years. Until then, they are the only one allowed to sell it. However, once the patent expires, other companies are allowed to develop their own product also known as "generic" versions.

Think of it like comparing Coca-Cola to the store brand cola drink. Both will really accomplish the same thing and refresh you. However, there are two problems with this analogy:

• A Coke only costs about $.25 more than the store brand so most people choose the Coke even though it might cost twice as much. But in the case of prescription drugs, they can cost up to $100 a month. Now, wouldn't you want to save 50% by buying the generic version?

• Whereas many Coke drinkers can tell the difference when drinking the store brand, this is just not possible with prescription drugs. Why? Because the government requires that all drugs contain the same active ingredients in the same measurements. Pharmaceutically, brand names and generics are identical. The only difference between them are the size, shape and color such as with "the little blue pill."

Furthermore, insurance companies generally cover a larger percentage of charges for generic prescriptions because it usually costs them less than covering a smaller portion for name brand drugs. For example, covering 80% of a generic prescription costing $50 would be less than cover 60% of a brand name prescription costing $100 ($40 paid out versus $60 paid out.) So, you'll receive more affordable health insurance if you use generic brands rather than brand names.

Warning: It's important to discuss prescriptions with you doctor. However, you should know that while they are required to advise you on prescriptions, they are not required to tell you about generic alternatives. They are essentially required to inform you about the ingredients of the drug. And since they often receive "benefits" from the drug companies, they might push that product harder. That said, if you ask them whether a specific generic drug will suffice, they are required to advise you properly. So, use specific generic drug names when having discussions with your doctor.

Group Rates Are Always Better Than Individual Rates

Just as going to the ballgame with a large group of friends, a group plan offer much more affordable health insurance than an individual health insurance plan. If your employer gives you the choice of participating in a group plan then jump at the chance. You will pay much lower rates.

Furthermore, if you're older, overweight or a smoker, joining is even more to your benefit. Why? Because when you apply on your own the same insurance company will charge you drastically more or even reject your application. When you apply through a group plan, the insurance company does not have this choice as the policy is for the group as a whole so, in essence, they must look at the group as a single entity.

In addition, people that already have specific health conditions may have a tough time purchasing a health insurance policy and even if they can, it can be quite expensive. Group health insurance plans are the absolute best way to receive affordable rates.

Now, I can hear many people saying something like, "But my employer doesn't offer an insurance plan." I have three responses:

• Get a new job at a place that does offer an affordable health insurance plan.

• If you can't find another job, do some research for your employer so they can understand how providing health insurance helps their company.

• If your company really can't afford it, organize a group plan with employees paying 100% of the costs. Even this option would be less per person than going individually.

What many employers don't fully understand is that while health insurance costs are definitely rising, not providing health insurance for employees can cost more in lost profits and employee turnover (see response #1). Health insurance benefits is the third biggest factor for employees when determining their satisfaction behind only salary and working conditions. Employees that are provided with affordable health insurance are happier and more productive.

Another thing that many employers do not consider is that fact that even if they passed the entire cost of the health insurance on to their employees, their employees would still be better off than if they have to purchase insurance individually because group plans are less expensive. Plus, other policies such as dental, vision and supplemental accident insurance can be adding at very little cost.

So do a little research for your employer. Let them know how providing employees with affordable health insurance can be a huge benefit for them. Don't want to create a presentation for them? Contact me. We can have a conversation so that I can get some background and I will contact your employer and present options to them. Present your employer with great options and they will love you... not to mention all of your co-workers.

Go To 21 Secrets To Discovering Affordable Health Insurance, Part 2