Healthcare costs are increasing day by day. Lots of consumers in Washington do not understand why their health insurance plan costs them more than others.
To know clearly about family health insurance in Washington,
you need to understand certain costs involved. In this article, we will explore all types of costs involved in a family health insurance.
How Health Insurance Prices Are Determined
The costs involved in a health insurance plan include internal and administrative costs, profit margins, and potential medical risks of the insured. It is clear that for a consumer having high-risks for great need for medical cover, the costs are high.
Medical history, current health, and lifestyle choices of the consumer are main contributors of health insurance costs. At the same time, a pre-existing condition can also increase the premium costs.
What Are UCR Expenses?
When you buy a health insurance plan, you are reimbursed for the medical coverage costs that you incur. Health insurers use Usual, Customary and Reasonable (UCR) expenses to determine reimbursement rates and to prevent doctors or hospitals for overcharging for services. UCR costs reflect the average total costs for medical services or doctor visits. In detail, they refer to:
• The usual fee, as clear from the name itself, is the cost of services regularly charged to all patients for a specific type of service.
• A customary fee is comparable to fees charged by health care providers offering the same services and who meet the same criteria for comparison with one another.
• A reasonable fee is the one when it meets both the usual and customary criteria.
How to reduce costs for a health insurance plan
• Do not buy the very first health insurance plan that sounds cheap or affordable. The very first tip for any purchase related to health insurance is to shop around. Compare and see the difference.
• Eating habits and healthy living style would make sure that the insurance companies do not charge you a higher premium. This is one concrete way of keeping the health insurance premium under check. If you keep yourself fit and healthy, you are not a high-risk individual and your monthly premiums would be automatically low.
• Do not convert every visit to the hospital to an ER visit. A lot of consumers in Washington tend to go to the emergency room when a visit to the doctor’s office or an urgent care clinic would suffice. Remember that there is an increased cost associated to every visit of receiving emergency room care.
• Try to eliminate unnecessary follow appointments. Make sure these are absolutely necessary. Sometimes, a simple phone call can replace a visit.
• Try to ask your doctor for alternatives to the expensive prescriptions. When prescribed a name brand prescription, ask if a generic will suffice.
