Shopping for Health Insurance

Health Insurance Online | April 5, 2013

Shopping for Health Insurance on Your Own can be Daunting, Find out More about Different Plans below.

Shopping for the right health insurance coverage can be intimidating, whether you are buying on your own or selecting a plan from what your employer is offering you. You will have to deal with all the terminologies that are often times unfamiliar and then there are all the different types of basic and supplemental coverage. The stakes are definitely high as health insurance is probably one of the most important needs that every individual has. Without it, you will be taking on a huge risk that may include not having access to a great number of non-emergency medical services. If you accidentally get hit by a bus, you may find yourself so deep in debt without health insurance. With the developments in health insurance in the U.S., you may also find yourself paying a penalty by 2014.

But choosing the right plan for you is just as important as or even more important than actually having health coverage. Most people are in the dark when they purchase a health plan for the first time and they find themselves paying for this lack of knowledge when the time comes to use their health benefits. With a little reading and self-educating, you may be able to make sense of the entire process of buying health insurance.

If you are getting your health coverage from your employer you need to be aware that it is possible that what your employer has to offer is not the best deal you can have. The main benefit of a health-sponsored plan is that you get a group rate. Sometimes, companies even cover your health insurance one hundred percent. An employer-sponsored health plan will be particularly beneficial for those with pre-existing conditions due to the significantly low group rate. Even if you lose your job, your health insurance will continue under COBRA for at least 18 months. If you are self-employed, there are trade associations that also offer a group plan that you can participate in.

If you are however in good health, you may find that you are better off purchasing health insurance on your own and opting out of the company. This is because in group plans premiums are based on the average health of the group. It would be easy to find the exact same level of coverage being offered by your employer under a group plan for a lower cost. You can do some comparison shopping in any of the multitudes of online sites offering rates and coverage from different insurers.

You may want to enlist the help of an insurance agent if you are purchasing health insurance on your own. Agents can help you look for the best deal as well as guide you as you go through the application which can be a complicated process. A good health insurance agent will check for your COBRA eligibility as well as the other government programs you may qualify for.

If you rely heavily on a family doctor or if you want to maintain your relationship with your current doctor, you may want to check which insurance providers they are accredited with. Keep in mind that health plans offered through a Health Maintenance Organization or an HMO can be quite restrictive and can be limiting in terms of the doctors available to you. They will not cover the costs you incur if you go to a doctor outside of their network. A Preferred Provider Organization or PPO lets you go outside of the network but for a higher cost. A Point of Service health plan or a POS will let you go to a doctor from outside the network but only after securing a referral from the network’s PCP or primary care physician.

The prescription drug coverage may not be able to cover all of your medication. Most plans set limits on alternative medicine and practices such as chiropractic care. Make sure you read all the dollar limits for the coverage as well as all the exclusions and limitations. You should also make a list of all the prescription drugs you take or coverage you will require to be able to counter-check them with the plan you are planning to purchase.

Be aware that the lowest premium does not mean the cheapest plan overall. Insurers offering health plans with low monthly premiums usually make up for it in other areas. You need to familiarize yourself with terms like co-pays, deductibles, co-insurance, and out-of-pocket maximums. These are the costs that will be coming from out of your pocket and they are usually applied to the bill before the health benefits kick in.

On the other hand, having a high insurance deductible is not always a bad thing. While the thought of having to satisfy a high deductible first before the plan benefits kick in may be a little frightening, you can look at it as your savings or your incentive if you have been able to maintain good health throughout the year. A high-deductible plan will also qualify you for establishing a health savings account or an HSA. This is an account that will let you save money pre-tax, which you can apply to your out-of-pocket expenses, tax-free. This arrangement lets you set aside funds for your medical expenses as you bring down your taxes and save for retirement in a tax-deferred account.

With all the options available for buying health insurance, coupled with all the many details that a person needs to know about their health coverage, picking the right health plan will require a lot of education and evaluation. You would not want to get your health insurance coverage wrong especially since you will be stuck with it for a whole year. A good plan is one where you will feel the most comfortable in terms of premiums and out-of-pocket expenses.

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One Response to “Shopping for Health Insurance”

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