Some experts say that the cost of health insurance is rising so fast that at the present rate, it will roughly double in four years.

The price of health care is soaring for a variety of reasons: Normal inflation… people’s belief that they have a right to the best health care money can buy…advanced technology… fear of malpractice suits… cost shifting from poor to better-off patients… government-mandated health benefits… an aging population… and more.

Here are some strategies members can consider to ease their own burden:

Increase deductibles.

With this option, the member becomes responsible for a larger portion of his or her medical expenses. This strategy may be less painful than paying a higher medical insurance premium every month.

Changing the co-insurance percentage and/or stop-loss level, or a split-level co-insurance plan.

These methods of lowering premiums result in the same type of cost-shifting as in Option 1, with the member paying a greater share of the costs when a claim occurs and should be reviewed independently and carefully to measure the impact of each.

 Eliminating benefits.

 If you consider the fact that medical insurance is designed to cover the major expenses, with the small expenses best covered by the individual, the elimination of some benefits may be a sensible alternative.  Examples include: eliminate accident benefits payable at 100 percent; reduce benefits to government-mandated minimums; reduce the outpatient co-insurance percentages. The results of these types of changes may have only a nominal impact on premiums.

Changing insurance companies.

 When this option is considered as a means of reducing medical insurance premiums, a number of questions should first be asked including:

  • Will the new insurance company’s pre-existing limitations have a negative impact?
  • How different is the plan from your current plan?
  • What is the new insurance company’s claim payment history and timing?
Get the facts.

The Professional Beauty Association (PBA) is pleased to announce a new partnership with Mass Marketing Insurance Consultants, Inc. – your resource for health insurance information. They can help you find the best coverage at the best premium, and explain how these strategies may be able to save you money.  PBA members can obtain a free, no-obligation consultation and quotation.  And, your PBA membership in partnership with MMIC now offers a Free Discount Pharmacy Card. Sign up now and start saving 10 percent to 60 percent on your prescription medications at participating pharmacies today! (You do not have to request a quote or purchase insurance to get this free benefit.)

Please visit mmicinsurance.com/PBA or call 800.349.1039 to learn more.