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  Is My Plan "Too Rich"  
 

What does it mean by Is my plan "Too Rich" Many employer group plans offer plans that have the best benefits, best coverage, dental and even vision. These are really good plans as long as you and your family are in a need of a plan to where you have very little out of your pocket if and when something happens and the premiums are affordable.

But now take the average person that may have a family with a spouse with one, two, three or more children in the family. Lets say that they consider themselves very healthy, children aren't sick very often, but their premium is $954 per month. The reason they are paying so much per month is because the plan that their employer offers is "Too Rich" in benefits. It may be a $250 or $500 deductible and perhaps an 80/20 or 90/10 plan. Now for this family that doesn't use the benefits they are over paying for their health care.

For a family that doesn't run to the doctor for every little cold or sniffle, they should actually choose a higher deductible plan such as a $2000-$5000 deductible plan that will save them over 50 percent in premiums. I would then encourage that customer to put the other 50 percent into a savings account for at least 6 to 9 months to save those funds to help reach their deductible for the accidents that could happen.

You should always find out how many office visits your plan has, and if you have the option of leaving off the office visit copay option. If you have a plan that has only two office visits per year, but it is costing you an extra $90 per month, do the math. That's $1,080 in annual premium for those two office visits alone. Doesn't it make sense to leave the office copay option off, and save that $1,080 and pay more if and when you go see a doctor than pay this money to an insurance company. Those two office visits the other way end up costing you $540 each.

Now what I do encourage is since your employer by law has to contribute a portion of the employees benefits, keep the employee on the employer sponsored plan, but shop the rest of the families coverage. If the deductible is really low and the person is extremely healthy even though the employer is contributing a portion, the employee may shop around for a different plan along with the family.

Learn how easy and convenient shopping for health insurance can be. Get your free health insurance online quotes today and start saving money!

 
     
 
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