potofgold's Blog

Shopping for Health Insurance: What You Need to Know
By Megan Mahan

Between the rising cost of health insurance and numerous types of policies, shopping for health insurance can seem like a daunting task. So how can you sort through all the chaos and find a policy to safeguard your health and maintain your budget?

Preparation and Education

Knowing the type of coverage you need before you begin comparing policies will make this task far less intimidating come shopping time. You and only you can identify the types of coverage you’ll need--from prescription drugs to covering pre-existing conditions, identifying your needs will help you to avoid purchasing more than what you need.

To learn more about the types of plans and benefits available in your area, contact the Division of Insurance (DOI) in your state. This underutilized resource is geared toward consumer protection and education and typically has downloadable articles and brochures to help you make informed decisions about your health and health insurance. And, when it comes to buying health insurance, knowledge is power!

Shopping Around

In most states, there’s no flat rate for health insurance policies. This means different insurers can sell similar policies for very different prices. While price disparities may seem like more work for you, these variations are really to your benefit. Obtaining and comparing multiple quotes and policies allows you to select a plan that meets both your health and financial needs.

So what exactly should you be comparing when shopping for policies? Here are a few major questions to ask:

• How much is the monthly premium?


• What’s the deductible?


• What percentage of expenses is reimbursed after the deductible has been paid?


• Does the policy cover all major medical expenses, including maternity costs?


• Does the policy shoulder any costs for prescription drugs?


• What coverages are included in the policy?


• Does the policy cover chronic or pre-existing conditions?


• Does the policy cover preventative care?


• Are the doctors or facilities you frequent inside the insurer’s network?


• How much will it cost you to be seen by someone outside of the insurer’s network?


• Does the policy cover alternative treatment, such as acupuncture and chiropractic care?

While you will undoubtedly think of additional questions to ask, the questions above will help you to quickly stack different policies against one another—and get an idea which plan is right for you.

Protecting Yourself

As with all forms of insurance, it’s a good idea to investigate your insurer before signing a policy. You can check your agent’s credentials, as well as the insurance company’s customer satisfaction rating and financial standings through consumer-friendly companies like AM Best and the Better Business Bureau. Doing a little detective work before choosing a policy will save you the cash and heartache of dealing with an unreliable insurer.

You can also protect yourself by making sure your policy contains a free look period. Most reputable insurers will give you a 10-day free look period, which allows you to revisit the provisions listed in your policy. If you change your mind about the policy during the free look period, you are entitled to a full refund and the policy will be cancelled.

Always ask the insurer if the policy has a free look period. If not, you're probably better off purchasing a policy from someone else. And remember: use your free look period to go over every detail of your policy. You won’t want any surprises when it comes time to file a claim!

Start Small

When it comes to purchasing health insurance, remember to start small. Get the facts from trusted sources, determine your needs and shop around for the best policy. Taking things one step at a time will prevent you from feeling overwhelmed by the task at hand—and help you choose the best policy to protect your health!

You can secure your peace of mind by buying individual health plans to see you through the rough days when the spiraling costs of medical bills will only add to your woes. Usually people are satisfied by the health plan options offered by their companies, because it relieves them of the headache of hunting for a suitable health plan on their own and also from the formality of doing the necessary paper work.

Before deciding upon the health plan that suits your needs, you should first be aware of the plans that exist in the market. These plans can be broadly categorized under managed health care plans and fee-for-service health plans.

Managed care plans: These health plans are comparatively cheaper than the fee-for-service health plans, but if you need to be hospitalized, then you’ll first need the approval of the insurance company, otherwise you may not be covered for the medical and hospital bills.

Fee-for-service is the traditional health care plan and offers you the freedom to choose your own service providers and hospitals. On the flip side, these plans are more expensive than managed care plans.

To decide which plan suits you best, you need to consider many factors. For example, you may be traveling around a lot. Let’s say you choose the managed care health program. You may face problems, since the doctors and hospitals covered by these plans are restricted and if the listed ones are not present in the area you are in, you will not be covered for the medical bills.

You must try to find out how the plan works to ensure good medical care. Some plans have their report cards, which are reports of surveys conducted on consumer feedback, preventive care, follow up of test results and more. Also, keep a lookout for magazine articles, which rate health plans. Additionally, you can also talk to the current members of the plan to get their feedback.

When shopping for individual health insurance plans, it is important to remember to do a careful analysis of the plans, as well as a comparative study of the quotes provided by the companies selling health insurance. This way, you will not only make an informed choice, but you will also rest content in the fact that your patience has borne fruit in the form of saving hundreds and thousands of dollars.

The task itself is not difficult. Search online and you will come across many companies offering attractive packages to woo the buyers. But, you must remember that on the face of it, the plans and the quotes they suggest may seem to be the perfect answer, but it is only when you do an in depth analysis, you will come to know of the loopholes and drawbacks associated with each plan.

Approach the companies who are willing to give you a patient hearing and explain to you in detail the pros and cons of all the plans. To understand them, you need to be familiar with terms such as premiums, co-payments, deductibles, and coinsurance.

The companies should also provide you their quotes listing the details of each plan. This means that they should list the benefits such as diseases covered, preventive health care, coverage of prescription drugs, visit to doctors, lab tests. Then, you should also keep in mind whether the plan only covers you or your family also.

The best way to decide a reliable company is to visit your state health department, who will be able to advice you not only on the plans but also on the companies with a spotless reputation. You can also get an idea of the companies that have been blacklisted for some reason.

You can also talk to your peers and friends and see if they have bought health insurance and if they are satisfied with the companies they have shopped from.