My husband passed away two years ago. I have his medical, dental and optical insurance, but they have raised the premiums so high that I can hardly afford it any more. I am 61 and am afraid not to have any medical insurance. Where do I go from here?

B.B.

Your fear of not having health insurance is well founded. Medical bills can be vastly higher than the cost of insurance and can bring financial ruin. Being insured is a necessity, but that doesn't mean that you need to have your current level of insurance.
Many people in this country are overinsured. That is, their insurance deductible is way too low and other coverage provisions are too "rich." For example, it makes little sense for a 25-year-old who is very healthy to have a $250 deductible. It is unlikely that such a person will have even $1,000 in medical bills. So why pay to insure a level of medical care that will not happen? That person can save considerable money by raising his or her deductible to as much as $1,500 or $2,000. The premium dollars saved would pay for a lot of medical care in the event it was needed.

So while it is important to have medical benefits, it is a waste of money to have benefits that you won't use. Even a person in her 60s might be overinsured. In your case, you may be able to make some adjustments to your coverage that would bring down the cost. Meet with a trusted insurance agent or broker and discuss your insurance needs -- the claims you have incurred in the past few years and any claims you anticipate in the future. After analyzing your insurance usage, you may be able to make adjustments in your current coverage that will save you money. You may decide to increase your deductible or co-pays. You may be able to reduce your coverage for outpatient doctor visits and concentrate your coverage on inpatient care. Perhaps your current insurance carrier has other options that may reduce your insurance bill. Sometimes it is less expensive to pay for certain medical care yourself rather than pay the insurance company to do so.

You should also look at your additional benefits, such as dental and vision insurance. Is the cost of that coverage less than the benefits you receive? How much dental or vision care do you need? Is the amount of money you pay -- the premium combined with your share of the cost -- lower than the amount the insurance company pays for your regular care? If your costs are more than the benefits you receive, consider decreasing this coverage.

If your health is good, you may be able to find insurance with another carrier that is more flexible and less expensive. Shop around for appropriate coverage at an appropriate price, and don't let anyone talk you into benefits you don't need. But never give up your current coverage until you are sure that you have new coverage in force!

Don't buy more insurance than you need. Count the entire cost of your health care, and you may be able to keep some of your money in your own bank account.