How to Save Money on an Illinois Health Care Plan

If you’re looking for an Illinois health care plan, there are many options to choose from. Not all are best suited to your needs, though, and if you’re not careful, you could wind up overpaying for health coverage that doesn’t really fit your situation. Thus, you need to do some homework. Keep in mind that most people spend several thousand dollars annually on Illinois health insurance premiums, and that some time spent researching now could lead to premium savings of hundreds or even thousands of dollars.

Group Coverage

Of course, if you’re employed by a company that sponsors health insurance for its employees, your decision’s pretty much been made for you. Most employer-sponsored health insurance is group health insurance, and in most cases, a portion of the premium is paid by the employer.

If you can’t join an employer-provided group health plan, you may qualify for a plan offered by a professional association or labor union you belong to. Service organizations and religious associations may also offer group plans. If you have access to any such plans, you should investigate them thoroughly, because they may save you substantial premium costs.

Individual or Private Coverage

If there’s no group health plan available, there are many individual plans for you to choose from, offered by dozens of reputable insurance companies. If you’re shopping for private insurance after having been covered under a group health plan, though, you must understand that the plans you’re going to see may be different from what you’re used to. Coverage definitions and limitations may be different, and your premiums will be probably higher than what you paid for your employer’s health insurance.

Plan Design Options

One of the first choices you need to make is among traditional major medical insurance, Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs). Traditional major medical insurance charges the highest premiums, but allows you to visit any health care provider you choose. An HMO establishes a network of providers and won’t pay for any medical costs incurred outside that network, and a PPO is like a hybrid of the two – you can get service outside the network, but the insurance company won’t pay as much of the bill. Of the three, an HMO generally has the lowest premium and traditional major medical insurance is the most costly.

Once you’ve determined the plan structure, there are additional ways you can tweak the policy to reduce the premium. If you’re married, for example, many insurers have one-size-fits-all “family plans” that don’t differentiate between families with or without children, but some have “empty nest” policies for married couples with no children living at home. Some insurance companies, though, offer different plans for married couples with children, and without. If it’s just you and your spouse, taking advantage of one of these “empty nest” policies could save a significant sum. If you have many children living at home, on the other hand, one of the one-size-fits-all family plans might be the best for you if it doesn’t charge extra for more children.

Other Approaches to Reducing Your Premium

The amounts you pay in annual deductible charges and co-insurance also affects your premium. The higher your deductible, and the greater your co-insurance percentage, the lower the premium you’ll have to pay.

Many consumers have a Health Savings Account (HSA), a tax-advantaged savings account dedicated to paying for medical expenses – with such an account, you can pay the annual deductibles and co-insurance costs with tax-exempt dollars.

Of course, premium costs are also influenced by your own medical situation and lifestyle choices. Applicants who are overweight and/or use tobacco products can count on paying higher premiums. Likewise, people with a personal or family history of diseases like cancer and heart disease may also face higher premiums or even rejection.

If your application is rejected for medical reasons, you can apply for coverage under the Illinois Comprehensive Health Insurance Plan (CHIP), a special plan that covers Illinois residents who’ve been turned down for private coverage.

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