Money Saving Tip #4: Esurance.com

I'm a teacher. For now. We'll see if I "make the cut" in the coming years.

As a teacher, I currently have OK health insurance. It's actually good for me as the employee, but to add my husband and daughter onto the policy was too expensive. So, I shopped around.

For the two of them, I went with Blue Cross Blue Shield of Texas. I found the policy quote on Esurance.com. It was incredibly easy to navigate. Basically, what I did was calculate out the worst case scenario for a year (isn't that WHY we have health insurance to begin with?) to see which one will be the most cost effective over a twelve-month, deductible period.

My work insurance worked out like this:

On the LOWEST plan, I would be paying $650 a month for myself, my husband, and my child: this equals $7,800 a year.

On the two BCBS plans I have my husband and child on, and the "middle" plan I have myself on (I'm still of child-bearing age and need the maternity coverage just in case), I pay $236 a month: this equals $2832.

A HUGE savings. If you are only looking at premiums as your bottom line, you're saving $414 for a family of three based upon these numbers. You'd have to calculate your own: you may have MUCH better, or sadly, much WORSE health insurance via your employer.

But of course, we know health insurance companies, and we know it doesn't end there.

On the work insurance, we have to meet the family deductible of $2,400 a year before they'll pay for anything. So, now worst case scenario, we're up to $10,200 per year. After that, we'd pay 90% of the bill, with a family out-of-pocket of $5,800 not including the premiums or deductible. So, that would be a total of $16,000 per year.

On the plans I've pieced together by shopping via Esurance.com, my husband has a $5,000 deductible with 100% coverage afterward. The out-of-pocket is $5,000 INCLUDING the deductible, so basically no more than $5,000. My daughter has a $1,200 deductible with 90% coverage, with a $3,000 out-of-pocket including the deductible. And I have a $500 deductible with $3,000 out-of-pocket excluding the deductible. This is $11,500. With the premiums, we're at $14,332.


That is a $1668 savings for the year. Either way, health insurance is a total rip off, but at least know that many of us DO have options! Just because your employer is offering it out doesn't mean that is the BEST deal around.

I suggest creating a chart when comparing the plans. Look at the monthly premium, the deductible, and the out-of-pocket (don't forget to calculate whether or not the out-of-pocket includes or excludes the deductible and any co-pays). Then, work out how much each plan would cost if you had $500 worth of medical bills that year, $5,000 that year, and even $10,000 that year. I've always done this and have narrowed my choices this way. Sometimes what seems crazy - like having a $5,000 deductible, actually would end up being cheaper in the worst case scenario.

Here's a really easy to read page defining the common health insurance terms:





Where are we now with monthly savings?
Tip#1 - Dish Towels $5 per month
Tip#2 - Dump Cable $92 per month
Tip#3 - Homemade Goodness $24 per month
Tip#4 - Esurance.com $139
Total per month: $260
Total per year: $3,120



I haven't read any of these books: I just used my own math skills (hopefully without error) and researched things via the internet. However, you may benefit from viewing them, so why not give it a try! I say the more we know, the better choices we can make.