When looking to get health insurance, you may be surprised by how expensive it can be. This past year, the amount paid for health insurance has increased drastically and it is wise to see how exactly you can get away with paying less.

The obvious first step to paying less on your health insurance rates is to stop smoking. Smoking is the single largest contributor to over-inflated health insurance premiums. In fact, many health insurance companies will not even accept smokers into their schemes and the only other option when you are classified as high risk is to go to a specialized company that will charge you huge amounts for being in their scheme. The time to quit smoking has never been better – save money both on your health insurance and what you pay for cigarettes and you will be living a much better life.

Another major factor which companies take into account when deciding health insurance premiums, is the yearly deductible amount that you pay out-of-pocket before the insurance kicks in. The higher the amount of the deductible, the lower your premiums will be. This can constitute some problem as you will need to pay out of your own pocket for services and oft times this is not considered into the family or individual budget.

If you take advantage of the new legislation passed in 2***, which allows you to open an HSA (or Health Savings Account) that allows you to put in pre-tax earnings into the account.  You can then spend this money on medical expenses – tax free. This could save you up to 25% in medical bills, and the finance for this account can be offset by what you gain in lowered premiums. However, bear in mind that to qualify for such an account, you need to have a yearly deductible of at least $1100 for an individual or $2200 for a family health insurance plan.

Then there is the internet factor. Browse around, do a bit of googling and you could possibly save up to 30% on your health insurance premium by using online health brokers that have lower overheads and can offer you close to the same service that typical bricks ‘n mortar brokers can. All that is required is a little patience and a bit of research.

Find some friends and start an association – or a small business. It need not be a large business and despite the fact that only companies with 24 or more employees are required by law to provide health insurance, the simple fact of the matter is that with a group plan, you are looking at enormous cost savings. Even with 2 people employed in a company can decrease the costs health insurance by anything from 20% to 50% on a per premium basis. The best advice is to shop around a bit, do your research and talk to a few people. Remember, it need not take away too much of your time, and it could help you save a lot of money. Who knows? You might end up making quite a bit money on your new venture. It pays to be adventurous.

The final factor that will help in reducing your premiums is to pay your health insurance company directly from your bank account and let them pass on the savings of not having to send an account or statement to your house. Remember, when dealing with health insurance, every little bit counts. The savings you make off using an HAS, or paying direct could help you get what you have always wanted. Now that’s what you’d like to call a win-win situation!

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