Choosing the right health insurance plan has never been easy, and latest health reform laws have further made things more complicated. In addition to considering important factors such as premiums, co-payments, and deductibles, you have to evaluate new provisions in health reform law that can impact your insurance coverage for the coming year. Here are some important tips that can help you in choosing the right health insurance coverage.
Determine Why You Need Health Insurance
First, it is crucial to determine why you need health coverage. Do you wish to protect your financial future from unexpected exigencies of life such as accidents or critical healthcare conditions? How much are you spending as current medical expenses? How much can you afford as monthly premium for health insurance? Determining your needs and how much you can afford is critical in choosing the right insurance coverage. Consider these factors in comparing different health insurance plans.
Does Your Employer Provide Health Plan?
If you have an employer sponsored health insurance, nothing’s better than that. Often, health plans provided by the employer cover entire bill amount for hospitalization, and dependant family members are also covered. In such a scenario, it is best to have the coverage from employer sponsored health insurance. However, if such plan does not cover entire medical expense incurred by you, you might consider comparing individual health insurance plans to determine which would be cost efficient for you.
Determine Which Health Insurance Plan Best Meets You’re Needs
Generally, there are three types of health insurance plans to consider – Health Maintenance Organizations (HMO), Point-of-Service Plans (POS), and Preferred Provider Organizations (PPO). Under HMO plan, you have the option to choose physicians within a specific network, which gives you less flexibility but are cost effective. PPO plans allow you to choose preferred healthcare provider within the network or pick out of the network by paying a heftier fee. Such plans are typically more expensive than HMOs. POS health plans provide the option to go out of the network by paying more, but generally, require you to pick a primary care physician within the specific network and get referral before seeing a specialist. Pick a healthcare plan that best suits your needs and budget.
Consider the “sum assured”
Sum assured is the maximum amount that can be reimbursed to an insured in one policy year. Therefore, it is important to give priority to the sum assured while choosing health coverage. Keep in mind the ever-escalating medical expenses and likewise, choose the sum assured carefully. However, make sure that you don’t choose a sum assured so high that you are unable to continue paying premiums for the same. Since higher sum assured comes with higher premium amounts, you should try to strike a balance between your needs and budget.
Before you choose a plan, do your research carefully. Find out whether the health insurance plan covers pre-existing conditions or critical illness. What are the hospitals and healthcare facilities covered under the network? See whether your preferred physician is a part of the plan. There are several things to consider before you buy a health insurance plan. So, do your research carefully.
Consider The Best Health Insurance Providers
To have the best return for your investment and maximum coverage, you should consider choosing the top health insurance providers that have a good reputation. You can consider getting recommendations from a reputable insurance agent who can help you choose the right insurance plan and the top provider as per your needs and budget.
Choosing the right health insurance plan is a big decision. Consider these tips that will help you have the best health coverage as per your needs.