Woman's health insurance costs $900 a month

This post comes from Stacy Johnson at partner site Money Talks News.

Here's a recent reader question I could relate to. If you pay for your health insurance, you probably will too.

"I need some direction as to where to look for health insurance. I am 60 years old, on workers' compensation with one child still under the age of 26. Of course, I have some pre-existing conditions. Who doesn't at 60 years old? My current insurance just raised my monthly payment $234 per month to a whooping $872, and dental of $120 quarterly, which will bring my payments to over $900. Where do they think people are going to get this kind of money?" -- Elaine

I feel your pain, Elaine. I'm 57, and this month my $5,000 deductible health insurance policy just went up an additional 15%. I'm now paying $800 monthly for insurance for what amounts to catastrophic coverage.

This is ridiculous, and it's one reason I was a supporter of the Patient Protection and Affordable Care Act, also known as Obamacare.

Don't get me wrong: This new health care law has plenty of problems. But I hope it will ultimately address the disgraceful cost of health care in this country. It was certainly about time somebody tried something. The idea behind the Affordable Care Act is to get more people paying into the insurance system to spread the risk and reduce overall costs, as well as to increase competition. Only time will tell if it will work.

In the meantime, here are some suggestions to address the cost of your health insurance:

1. Shop

Back in 2007, I was researching a TV news story about health insurance and needed video of an online health insurance quote. So I went to a comparison site, input my personal information, and got a quote from my current company. The cost was $346.50 a month. The problem? I had been with this company for seven years, and thanks to annual increases, they were charging me $743 a month for the same policy.

As you might imagine, I wasn't a happy camper. When I called the company and asked how they could justify charging new customers half of what I was paying for the same coverage, they mumbled something about premiums increasing over time. So I promptly switched to identical coverage at a different company for half the price. Of course, I avoided the cardinal sin in insurance -- canceling existing coverage prior to new coverage being in place.

The single best place to shop for health insurance is this page of HealthCare.gov, where you can find the various carriers, options and prices in your state.

2. Understand what you're paying for

While insurance isn't rocket science, it involves unique terms and odd language that can make it confusing. Before you start comparing policies, learn what to look for. For more help, see the link below on shopping for health insurance.

3. Pare down your coverage

I don't have a dental plan because I don't think they're worth the money. The maximum benefit of most policies has changed little over the years, even as costs have increased. Result? You're paying too much and getting too little. These policies can cost $50 monthly for an annual benefit that's capped at as little as $1,000. They often pay only 50% of the cost of restorative care and oral surgery, and nothing for cosmetic care. So unless Elaine knows in advance that she's going to need covered dental work, dental is an expense I'd reconsider.

After comparison shopping, the second best way to save on health insurance, as well as most other types of insurance, is to raise the deductible -- the amount you pay before the insurance company begins to pick up the tab. As I mentioned, my policy has a $5,000 deductible, which means I pay the first $5,000 of medical expenses annually.

Since I've never (knock on wood) spent close to $5,000 in any given year on medical expenses, this means I'm paying close to $10,000 annually for nothing -- except, that is, the peace of mind that comes from knowing that should disaster strike, I won't go bankrupt.

Is this ideal? Hardly, especially when insurance company executives are raking in the dough. But this is the world we live in -- a world I hope will change as the Affordable Care Act kicks in.

Whether a high-deductible policy makes sense depends on the person. I rarely go to the doctor; Elaine may need regular medical care she can't afford to pay for herself.

4. Go without insurance

This is not an option I'd recommend to anyone. But if you can't afford insurance and you're without savings and/or income, you do have alternatives to the emergency room.

There are more than 8,000 federally qualified health centers nationwide. These are medical facilities that charge what you can afford to pay, which includes zero if you're earning zero.

According to this page of the Health Resources and Services Administration's website, here's what these health centers can do:

• Checkups when you're well.
• Treatment when you're sick.
• Complete care when you're pregnant.
• Immunizations and checkups for your children.
• Dental care and prescription drugs for your family.
• Mental health and substance abuse care if you need it.

To find one near you, go to the HRSA search page and type in your address.

5. Wait for Obamacare to kick in

While some parts of the Affordable Care Act have already been implemented, two of the biggest provisions won't start until 2014:

• State insurance exchanges that are supposed to drive down prices through increased competition.
• Government subsidies to help more people afford insurance.

If your income is at or below 133% of the federal poverty level, you'll be eligible for Medicaid. (You can see what the federal poverty level is here on the Famileis USA website. While it depends on the number of people in the household, for the 2012-2013 fiscal year it's $11,170 for a single person.) You may also be eligible with a higher income, depending on state rules.

If your income is more than 133% of the poverty level, but less than 400%, you'll get help with insurance purchased through an exchange (in other words, not through an employer). To see what assistance you might qualify for, use this handy calculator from the Kaiser Family Foundation. I put in some made-up numbers for Elaine to see what it would look like. I said she was single and will earn $30,000 in 2014. Here are the results:

• Income -- $30,000. This is 261% of the poverty level.
• Unsubsidized annual health insurance premium -- $10,172. This is an estimate of what she'd be likely to pay in 2014 if there were no subsidy.
• Maximum % of income required if eligible for a subsidy -- 8.36%.
• Required annual premium payment -- $2,509, which is 8.36% of income, covering 25% of the overall premium.
• Government tax credit -- $7,663 ($10,172 minus $2,509).

To boil all that down, people making less than 400% of the federal poverty level won't pay more than a certain percentage of their income for health insurance. In Elaine's hypothetical case in the example above, that's 8.36%. Because of tax credits, her insurance expense will drop from about $800 monthly to $200.

Now you can see why it's called the Affordable Care Act.

More from Money Talks News and MSN Money

• Can't afford health insurance? Here's what to do 
• Shopping for health insurance
• Is dental insurance worth it?
• My disease is bankrupting my family
• Will Obamacare force smokers to quit?
• Flu outbreak is costing companies billions