Five Tips for Choosing the Right Health Insurance Plan

One of the best ways to protect your personal well-being is to have a health insurance plan. Due to the large number of companies offering this type of insurance policy, choosing the right one can be a daunting task. Here are five tips to help you find the best plan on the market today.

Check Networks of Different Plans

If you have a particular group of doctors that you prefer, ask them which insurance networks they are part of. You can also use one of the many network accredited online directories to find out what each plan on your list is. On the other hand, if you’ve moved to a new city and don’t yet have a doctor of your choice, choose a plan with a large network of health practitioners.

Know the Maximum Bonus Budget

To find out the amount of money you can spend on the policy without compromising your financial ability, consider your average monthly expenses. Low premiums often result in higher out-of-pocket costs. Therefore, the plan that seems to be the cheapest may actually be the most expensive as you will have to pay for most of the services. One of the best ways to choose the right premium is to estimate the total amount of money you spent on healthcare over the past year, including out-of-pocket and premiums. Then choose a plan with similar monthly deductions, contributions, and bonuses. If you need expensive procedures or frequent medical care, the premium plan will save you thousands of dollars in out-of-pocket costs.

Seek Additional Benefits

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In order to attract more customers, insurance companies often offer policies with additional benefits other than health insurance. Based on this fact, it’s wise to check the summary of benefits of each policy on your list until you find the one with your preferred coverage. For example, some policies provide better coverage for mental health and physical therapy care, while others have more comprehensive emergency coverage.

Research Plan Structure

Once you have an estimate of your monthly bonus, your next step is to determine your ideal plan structure. Some of the most common plans are HMO, EPO, POS, and PPO. The plan you choose will determine which doctors you can see and your costs. Often times, plans with referrals such as POS and HMO require you to consult a primary care physician before making an appointment with a specialist. If you have a network of doctors you prefer to see, avoid plans that they don’t.

Compare Out-of-pocket Costs

Your preferred health insurance plan should clearly state the services and amount you have to pay. Total amount includes coins, co-payment and deductible. An out-of-pocket low-cost plan is an ideal choice if you regularly need the emergency room, take expensive medications, have planned an upcoming surgery, or have been recently diagnosed with a chronic condition such as cancer or diabetes.

Finally, make sure the health insurance company is legally accredited, reputable and reliable to avoid any inconvenience.

About Lily Hammond

I have been working as an insurance consultant in my own insurance agency since 1998. Because I've been doing this for so long, I know every detail and I'm here to help you. You can find my e-mail address and work phone on the contact page.

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