Health insurance may be a necessity, but that doesn’t mean all policies are going to be a good fit for someone. Health insurance policies vary drastically, so you should make sure you take the time to learn what to look for before choosing any health insurance policy. This will help you understand what you’re looking for and find the right policy for you.
Understand the Terms Used
There are a lot of terms used to describe the various health insurance policies. If you’re not sure what a term means, it may be more difficult to compare the policies and choose the right one for your needs and budget. Some of the terms you’ll want to know include the following.
- Premium – This is the amount you’ll pay each month for the health insurance.
- Deductible – This is the amount you’ll pay before the insurance starts helping with payments.
- Copay – This is the amount you’ll pay for specific services or prescriptions throughout the year.
- Coinsurance – Similar to the copay, but instead of a specific amount, it’s a percentage of the cost of that service.
Make Sure Your Doctor is Included
If you already have a doctor and you’d like to make sure you keep seeing the same doctor, thebalance.com recommends making sure they’re included in any health care plan you’re considering. You’ll need to make sure the doctor will be considered in-network so you don’t pay extra fees out of pocket just to see them any time you need help.
Look at Out-Of-Pocket Costs
You’ll have at least some out-of-pocket expenses like the deductible, copayments, and coinsurance. According to healthgrades.com, these add up to your maximum out-of-pocket costs, which are limited to $7,150 for a single person and $14,300 for a family. They can, however, be lower with some policies, so make sure you consider all of these expenses together to compare different policies.
Check Prescription Drug Coverage
Health insurance policies may only cover minimal prescription drugs and may not cover the ones you need right now or think you may need in the future. You’ll want to make sure you check to see if the prescriptions you currently have will be covered as well as look for any dollar caps or other limitations to ensure your prescriptions will be covered throughout the year. This could help you save money in the long run as prescriptions that are not covered may be expensive.
Check Out Supplement Plans
Medicare recipients may find this health insurance won’t cover everything they need throughout the year. If you’ll have Medicare, check out supplement plans so you’ll have full coverage. These plans vary quite a bit, so make sure you find the right Medigap plan to ensure you will have all of the coverage you need. The right coverage through a supplement plan can minimize health care expenses throughout the year.
Don’t simply choose the first health insurance policy that’s recommended for you. You may end up paying a lot more out of pocket than you intended or finding your health insurance just doesn’t cover everything you need. Instead, use these guidelines to research your options and choose the best health insurance plan for your needs.