7 ways to avoid "going naked" on health insurance
By Paul Bannister • Bankrate.com

4. Shop for individual policies
Maybe it's not as expensive as you think. Shop around -- comparison shopping is easier than ever through the Internet. Premiums vary greatly depending on your age, occupation, lifestyle and medical history. Keep in mind you can tailor your plan to fit your individual circumstances. If your eyes, teeth and ears are in good shape, for example, you can save some money by leaving out vision, dental and hearing coverage. And don't try to buy coverage for tiny expenses. Some claims cost more to investigate and process than the amount at stake. If you want everything covered, you're going to have to pay big premiums.

5. Protect against worst-case scenarios
Consider insurance coverage as only for emergencies, and your health insurance premiums as just another cost of living that you keep as low as possible by having high deductibles.

If you generally enjoy good health and only see the doctor once or twice a year, consider purchasing "catastrophic" insurance through which you carry high deductibles -- say, $2,500 to $10,000 per person per year -- and pay for doctor visits out of your own pocket. An annual checkup and a year's supply of allergy pills, for example, might cost you $500 a year, but that might not equal one month's premium on a full-blown health plan. And if disaster does strike, catastrophic insurance will keep you out of the poorhouse.

6. Join the club
Get into a medical re-pricing plan. It's not medical insurance, but more like membership in a club, and it can save you money. You join the club by paying a monthly fee -- typically from $7 to $75 -- billed directly to your credit card. For that, you'll receive a list of providers -- doctors, dentists, pharmacists, chiropractors, even acupuncturists or surgeons -- who have agreed to reprice their "customary charges" for services or drugs -- up to 60 percent off.

Services provided by the discount clubs vary widely, however, and you should be cautious before you rush to buy. Some cards are sold by small companies with only an address on the Internet; others are marketed by merchandising giants such as Sears and JC Penney.

Big names among the repricing clubs are Care Entrée, which advertises a network of 400,000 medical-service providers; Careington, with 22,000 dentists on its books; and AmeriPlan USA, which has 18,000 dentists listed.

The pros: There are no limitations on how much you can use the cards; pre-existing conditions won't disqualify you; there are no deductibles or co-payments, and there's no waiting period.

However, critics caution that some discount clubs often promise more than they can deliver. There is no guarantee that you'll get the benefits for which you're paying premiums, and you have to pay cash at the time of service.

"Discount clubs are no substitute for a real national health system," says Gail Shearer, director of health policy analysis for Consumers Union, "but they are a fact of life."

Consumers, she said, should check with their local Better Business Bureau or their state insurance commissioner to see if the club they are joining is reputable, and if its rates really offer savings.

7. Check government plans
If you're poor or older, you may qualify for some coverage through Medicaid or Medicare. The federal Medicare program provides medical services for the elderly and disabled. Medicaid, funded by the federal and state governments, pays for medical assistance for individuals and families with low income and resources. Most states also have "healthy children" programs that provide funding for medical needs for children under 18 at very low cost. And, if you're a veteran, don't forget the hundreds of VA medical centers and outpatient clinics around the country that provide free or low-cost medical care.

If all else fails, talk to your doctor. Most doctors will charge what they think a procedure is worth. As an individual, you have little bargaining power. But some doctors say they will give a discount for cash and wonder why patients pay a middleman to negotiate a deal for them. "Approach your physician, tell him your situation and ask if something can be worked out," advises Shearer. "Even if he won't reduce his charges, he may make other choices, especially in prescription drugs."