Contracted rates are a critical component of the Nevada health insurance industry. A contracted rate is the predetermined rate that an insurance company will pay a healthcare provider for services and I feel it is the single most important aspect of why we must all have health insurance coverage. This is also important to take under consideration when selecting a Nevada health care plan and company. The contract rate (also referred to as the, \"usual and customary\" charge) paid to each physician, hospital, pharmacy, and lab facility is a fraction of what your healthcare costs would be without this pre-existing agreement. The contract between these providers and the insurance company is the key to saving many thousands of dollars in the event of an unexpected hospitalization or injury. After all, health insurance plans are designed to help save you money. Instead of being responsible for paying the normal charge, you are instead expected to pay only your deductible or copayment. Anything that the insurance company doesn't pay is written off-no breaking your bank, ruining your budget or reducing your retirement savings.

Having helped many with Nevada Health Insurance and representing all of Nevada Health Plans, we have witnessed the power of contracted rates year after year and we are excited to share one of our client's stories with you.

The client we're talking about today had an unexpected injury and a multi-night hospital stay which resulted in a bill of more than $95,000. This client, Steve H., would not have been able to pay that balance-even after taking money out of his 401K. Luckily, he had the right Nevada health insurance plan with an aggressive contracted rates table. At the end of the day, the final amount Steve had to pay the hospital for $95,000 worth of services and procedures was only $1,500. The balance, after the insurance company and Steve H paid, was written off by the doctor and hospital because of the contracted rate!

In order to capitalize on the contracted rate your health insurance company has negotiated for you, always stay in-network when going to the doctor or scheduling procedures. In our next education e-mail, we will discuss the true meaning of in-network and help you avoid the expensive pitfalls of going out-of-network.

Make sure that your bills always reflect the usual and customary rate or the contracted rate for your procedures. If you do not have a health insurance policy that ensures you these affordable rates, get one today. This article covered information specific to Nevada Health Insurance and Nevada Health Plans. Consult your agent for more information or click on the links at the end of this article for a free quote.