Bud DiMaggio is pretty happy to have an extra $150 a month. In April, DiMaggio made some changes to his family's health insurance coverage and the result is an annual savings of $1,800.

DiMaggio, who has his own business, put himself and his two children on individual plans, while his wife stayed with the group policy through her employer. The children are covered under BlueChoice for Kids, which actually gives them a better plan and some dental coverage, DiMaggio says.

He transferred to a Conventry health-care plan and even though the deductible is a bit higher, the plan has better coverage and saves him money each month, he says.

"It made me think about whether I'm paying too much for car insurance, and I'll probably switch my life insurance."

DiMaggio went to Reese McFaddin, owner of Workplace Benefits on Daniel Island, for help. McFaddin's agency works with businesses and individuals to help them determine the best insurance policies for their health needs and available budget.

Most people tend to accept the group policy offered through their employer or avoid individual policies because of the perception they are too expensive. According to McFaddin, that's not always the case.

Nine times out of 10, the mom and dad should be on separate policies, she says. Typically, a company pays 60 percent for an employee, but zero on a dependent. Particularly if one spouse doesn't work or is self-employed and healthy an individual plan may very well be the best and most cost-effective option.

McFaddin also recommends BlueChoice for Kids, a health insurance program for children through Blue Cross and Blue Shield. This plan can result in savings, particularly if a family has only one child who is healthy. For $150 per month, the plan covers children from 6 weeks of age to 4 years old. The cost drops to $117 per month for children ages 5 to 18. Children can keep the plan through age 24 and then transition to an adult plan.

BlueChoice for Kids comes with a prescription drug card and covers wellness visits and immunizations with a $15 co-pay, as well as one eye exam each year.

Whether the savings is a few hundred dollars a year or a few thousand, it can have a big impact on the family budget.

"Now people are trying to save money any way they can," McFaddin says.

T. Lee Howard is a sales representative with Rogers Benefit Group in Mount Pleasant and a board member of the Lowcountry Association of Health Underwriters. He says people have more choices than ever when it comes to health insurance and they need to explore their options and shop around.

He offers the following four suggestions for saving money on health insurance:

1. Raise your deductible (the amount of money you pay before your benefits kick in) as a way to lower your premium (the amount you pay each month). Health insurance was originally designed to protect people from catastrophic loss, but now everyone is accustomed to having their co-pays and drug cards, Howard says. But, a young healthy family doesn't need a $500 deductible. Many plans offer a co-pay (great for families with young children who frequent the doctor's office) and allow you to raise the deductible, so the monthly premium is more affordable.

2. Consider a health savings account. HSAs are beneficial for a healthy family with older children and low monthly medication expenses. Under an HSA, consumers are giving up the benefits of a co-pay, but the money saved on premiums goes into the savings account, which earns interest and is available for use at any time. Howard himself has a HSA and says they aren't for everyone. For people whose monthly medication costs exceed $200 or $300 a month, it's not beneficial.

3. Talk to an agent. "These are the people who are paid money to review your health plan," Howard says. "Make sure the agent does his due diligence and finds the cheapest plan."

4. Compare Individual versus group plans. Howard says he is seeing more people switch to individual plans. He cautions that individual plans are extremely selective and can opt to deny coverage completely or deny coverage of certain conditions, such as maternity care.

Group plans can't deny applicants, so they are probably a better choice for someone with existing health conditions. Usually the employer pays at least 50 percent of the employee's cost, but one aspect to consider is an individual's costs may be driven up as a way to cover everyone else on the group plan.

For example, Howard says, a young single man's rate is driven up by the older people covered on the group policy. So, in that case, it might make sense to have an individual plan and save some money.

One of the easiest ways consumers can save money on health insurance is by taking responsibility for their care, Howard notes. That includes talking with your doctor about use of generic drugs, reviewing your bills and shopping around when it comes to scheduling a medical procedure or test.

"In the end, it all comes back to personal responsibility," Howard says.

Take charge of your care

Below are a few tips for keeping your health insurance costs under control.

> If you have a prescription drug plan, take the list of preferred or generic drugs to your doctor and see if you can take a less expensive medication. Your doctor may approve a second tier or generic medication that's just as effective but is half the cost, says T. Lee Howard with Rogers Benefit Group.

> Talk to your physicians about medical costs. Shop around and ask questions. "All of us as a whole have gotten in mindset of not having medical practitioners compete in the marketplace," Howard says. "If you shop for a car, you'll look for quality and price. But if it's a MRI, you'll just do what they tell you. We don't shop around, we don't even ask anymore. Medical practitioners and hospitals should have to compete in the marketplace."

> When it comes to X-rays and lab work, your insurance company may have a preferred lab, so be sure to request your order be sent there, Howard explains. Otherwise, the doctor's office will simply send it to its contracted lab and could cost you more money.

> Unless you have a life-threatening emergency, avoid the emergency room and instead go to an urgent care facility. With most health plans, you will simply pay your co-pay rather than be subject to meeting a deductible, explains Reese McFaddin, owner of Workplace Benefits. "The ER is the most expensive place on Earth, and you're going to wait eight hours."

> Find out if a simple, outpatient procedure can be done in the doctor's office, such as a colonoscopy or having moles removed, McFaddin suggests. That will be much cheaper than going to the hospital.

> Compare your bill to the explanation of benefits. "It happens a lot that your insurance pays a claim, but you still get a bill for it," Howard explains. "If you pay it, good luck getting the money back. Check your medical bills. We've gotten way too accepting of 'it is what it is.' We have more rights and responsibilities than that."