Flexible Spending Accounts (FSA’s) are offered by many employers in the United States. The benefits of a flexible spending account (FSA) is that it allows you to use pre-tax money to pay for qualified medical expenses. What is the benefit of that you ask? For simplicity’s sake, let’s assume that you make $1,000 per month and that your tax bracket is 25%, and you have $100 put into your FSA, now you’re only taxed on $900, or $225, meaning that you take home $675. At the end of the year, you’ll have $1,200 in your Flexible Spending Account which you can use for any qualified medical expenses. Now assume the same situiation, however, you don’t have an FSA setup. Each month, you earn $1,000, but you don’t contribute anything to an FSA, so you are taxed 25% and you only take home $750. At the end of the year, you have no money in an FSA account, and you only have an extra $900 (assuming you saved that money). Let’s say that you have an emergency procedure performed that costs $1,100 – In scenerio 1, you’ll be able to pay for the procedure from the Flexible Spending Account, however in option 2, you’ll be left to pay the bill on your own, with your post tax dollars.

Flexible Spending Accounts are great because they give your money more power since you aren’t paying taxes on the money that is contributed.

With the ever increasing cost of prescriptions drugs and medications, more and more people are looking for alternatives. I’ve seen newscasts and heard stories of people crossing international borders in order to be prescribed and/or purchase prescription medications. While I’m sure there are many legal issues with doing this, both in being prescribed prescription medications across borders and actually bringing prescription medications back into the U.S. (or whichever country you may reside). I cannot condone or recommend either.

One alternative to paying the high price is to use online pharmacies. By doing this, you’ll have to have a physical prescription from your doctor or physician and usually you’ll be asked to the fax the form in, in addition you’ll have to provide all of the contact information of your doctor. There are many reputable online pharmacies out there, such as Drugstore.com, WalMart, Pavillions, etc.

When it comes to routine checkups, and or picking up prescriptions, try visiting a local clinic. For college students, your university clinic is a great option. Chances are that rates will be more competitive for office visits, procedures and for prescription medications.

Don’t let the fact that you have no insurance keep you away from seeking medical care when you need it. Visit a clinic and find the pricing for an office visit for uninsured individuals.

The only way that the lowest premium will actually be the cheapest and lowest costing health care plan is if you do not go to the doctor or get any prescription drugs during the course of the year. For example (and this is just a rough example to illustrate a point), let’s say that you have a condition requires monthly checkups and medication – 12 doctor visits and 12 prescription drug purchases.

• Plan A – $50/month; $60/doctor visit; $50/prescription
  Assuming the above scenario, this person will spend $160 per month; or $1,920/year
• Plan B – $100/month; $25/doctor visit; $25/prescription
  Assuming the above scenario, this person will spend $$150 per month; or $1,800/year

This was obviously a very simple example, but it goes to show that different plans could have different effects on the amount spent/saved each year.

Choosing an insurance plan is just like choosing a car. There are many models out there, and there is probably one that will be best for you. When comparing insurance plans, you’ll need to consider what you need from a health insurance plan. For example, a single male will not need a plan that covers maternity (in most cases), so by selecting plans that do not offer maternity coverage, he will be able to find health care plans that have lower deductibles with similar options. Just make sure that when you’re comparing plans that you find a plan that doesn’t offer things that you don’t need, becuase in the end, if the plan offers it, you’ll be paying for it.

Yes, it’s true that health insurance is very, very expensive, but however expensive it may be, that doesn’t necessarily mean that you will save money by not having insurance. For example, let’s say that you have an insurance plan that costs you $200 per month ($200 a month is probably about average for a single private insurance plan, outside of potential employer coverage). Annually, you’ll be paying $2,400 for your health care coverage. If for any reason during the course of the year you are hospitalized for any reason, you could end up spending at least $2,400 while being hospitalized. A minor car accident can cost thousands of dollars, and major illnesses, cancer, etc. can cost hundreds of thousands, if not more.

Just keep the big picture in mind when considering health care coverage.

We’ve all seen the commercials – smoking is bad for you, smoking kills. If you’re a smoker, you are more likely to have health problems, so of course, the insurance company is going to charge you a higher premium – they’d be idiots not to, because as a smoker, you’re more likely to need medical treatments than a marathon runner.

Other things to keep in mind is drinking alcohol and eating/overeating. Overeating often leads to being overweight, and overweight leads to health problems. Typically obesity can cause a large number of problems, so again, being overweight will cause insurance premiums to rise as well.

This one might seem like a no-brainer, but more times than not, people will get caught using out-of-network providers rather than in-network coverage due to the fact accidents happen. Sometimes we just need emergency medical coverage.

HMO health care plans will typically require that you stay entirely within the system and anything out of the system will be entirely out-of-pocket. PPO plans will allow you to go out-of-network, but you’ll typically being paying more: an in-network visit might be a flat rate of $25, where an out-of-network visit might be a 50% copay. FFS health plans will let you go anywhere, but if saving money is what you’re looking to do it will be best to “shop around” to find the best prices for the services that you’re looking for. And make sure you don’t just pick a doctor because the price is the lowest, be sure to check qualifications and references as well.

Anytime your employer (or your spouses employer) offers health insurance plans, taking advantage of a group plan will almost always get you the best rates possible – definitely better than if you were to try to get the same plan privately. In some instances, it may even be beneficial to have coverage from both employers: the husband’s and the wife’s, but keep in mind that double coverage will not allow you or your providers to collect payment on more than 100% of the cost.

Working couples with insurance from two employers may be able to get more or pay less than one-income couples. Depending on the premiums and benefits of each available plan, the best deal may be separate coverage for each, double coverage for both, or forgoing one spouse’s coverage in favor of the other’s. If you have kids, you’ll need to compare your options for family coverage.

Another way to get a good family medical insurance policy is to look at other groups, clubs, associations, etc. that may offer it. You may already belong to some group that gives its members group health insurance; such as USAA. Both my wife and I are eligible for USAA coverage because we’ve had family members who have served in the military. If you’re in the market for health care coverage, it may be a good idea to look into joining a group or association that could offer discounted health care plans and coverage options.

Esure Insurance is an insurance company based out of the United Kingdom that launched strictly online in order to save its customers money by harnessing the power and efficiency of the internet. Esure Insurance was founded by Peter Wood in 2000 using the internet as the primary sales channel. Mr. Peter Wood had previously founded an insurance company called Direct Line back in 1985 which sold insurance over the telephone.

Esure Insurance company had a great boom in its first five years, gaining over one million customers in that time. Esure definitely had the right idea, and still looks like it is doing great. The Esure website is easy to navigate and has a great clean design and layout. From the homepage, you can select one of the 6 types of insurance that you want (or that you already have with Esure):

• Car Insurance
• Home Insurance
• Pet Insurance
• Travel Insurance
• Motorbike Insurance
• Van Insurance

It’s funny that they have a category specifically for “Vans”, but I guess things are different across the pond.  Anyhow, after selecting the type of insurance that you want/have, you are presented with a simple list of options:

• Get a quote
• Retrieve a quote
• Renew or view my policy
• Plus plenty of links for navigating ad learning more about the type of insurance that you’re viewing, such as: Making a claim, Claim FAQ’s, Policy Information, Will you insure me, etc.

All in all, Esure sounds like a great idea and the website seems like it is built for simplicity and growth – it does what it’s supposed to do.