How to Buy Health Insurance

Buying health insurance can be one of the most important decisions you can make. This worthwhile policy is a serious investment not to be made without weighing all the options. With the assistance of technology, today's health insurance company's are making it easier for individuals to shop, compare, and buy policies all from the comfort of their homes.

Instructions

Difficulty: Easy

Things You’ll Need:

• You will need 15-20 minues of uninterrupted time to contemplate you and your family's needs.
• A computer with Internet access and a email account.
• A checking account or credit card to purchase the policy.

1. You need to identify what you are are looking for in a health insurance plan? Specifically you need to identify beforehand what is more important to you - lower premiums, copay visits, or tax advantages? Most companies offer customized quotes as a way to provide you with a policy that has exactly what you're looking for.
2. Before committing to anything take a moment to review the company that is underwriting the plan. You want to consider whether or not the company pays claims on time and what is the company's rating with A.M. Best or Standard & Poor's. Also a factor is whether or not the company have a history of complaints listed at RipOffReports.com or the Better Business Bureau?
3. Once you've done your research on the company you must know and be clear upfront on what you are expected to pay out of pocket and when - deductibles, copays or coinsurances. Also you must understand what is covered or not covered by the insurance company and also to what dollar limit.
4. It's always great to research the provider network. This is especially handy of you've been going to the same physician for a few years.
   
   You want to consider whether the doctor network is an HMO or a PPO? HMO's are Health Managed Organizations and PPO's are Preferred Provider Organizations. There are several differences between the two but to keep it simple think HMO = doctor referred whereas PPO = you choose the doctor, specialist and/or hospital.
5. And last but not least, keep your eye on your botom line. Do a calculation to see what it would cost you annually in both a good health year and also a bad health year in terms of montly premiums, medications, and deductibles.

Tips & Warnings

• If you have any preexisting health conditions ask what are your chances of being accepted by the underwriters and what riders are available to you.
• Smokers pay a higher dollar figure for health care premiums than non smokers. Rates for smokers are typicaly 30% higher.
• Ask whether the policy included prescriptions and whther they were fully covered or copays. Also ask what are the different pricing for generic vs name brand.
• By law all health insurance policies come with a 10 business day free look provision which allows you to review the policy in depth and to make a final decision. This provision also allows you to obtain a full refund if you no longer want the policy and providing you contact the company within the 10 day period.