In this tumultuous economy, people are looking to save money any way they can. Cutting insurance costs – especially health insurance costs – is one method that many are choosing to save. However, getting rid of health insurance can end up costing insured people much more than premiums. A better way to save money on health insurance is to avoid high cost health insurance plans through shopping smart, consulting state health insurance law and staying healthy.

People spend too much on health insurance all the time. They do this by not taking the time to shop smart. Like anything else, people can save money on health insurance by comparing prices and looking for discounts. They can do this in a number of ways. First, they should make sure they look for prices from many different companies. Each company has a slightly different criterion on which it bases its prices. Because of this, one company may extend a less expensive policy to the same person as was paying double with another insurer. Second, they should determine whether there are any discounts available. Many employers offer group health insurance plans that can save employees money. Some people may be able to get health insurance through a spouse or parent. Discounts may also be available for students and people who are members of professional groups, like the writer's guild.

Consulting state insurance law is another way that customers can avoid high cost health insurance plans. Each state has insurance laws that govern how health insurance can be sold and what diseases or disorders policies must cover. Some states require insurance companies to cover certain ailments. National laws also affect health insurance coverage. For example, a Federal appeals court recently ruled that insurance companies must cover mental and physical illnesses to the same extent. By examining state health insurance law, in addition to federal law, customers will be informed about what health insurance they purchase. If a health insurance company is not offering coverage that is federally or state mandated, customers will know to stay away.

Finally, one of the best methods that customers can use to avoid costly health insurance plans is to stay healthy. The healthier a customer is, the lower his or her insurance rates will be. Additionally, staying healthy means fewer deductible and co-pay costs. Many insurance companies offer information and support on how to stay healthy, such as diet, exercise and reducing stress.

Cutting health insurance may seem like a good idea in this difficult economy, but there are better ways to save money. Avoiding high cost insurance is one of them. Smart shoppers who consult state health insurance law and remain healthy do exactly this.