How to Compare Health Insurance Costs

No two health insurance policies are alike so compare carefully.

In today's costly health insurance marketplace, it is more important than ever to get the maximum bang for your insurance buck. Yet, buying the cheapest available policy--if, God forbid, you should fall ill and require expensive treatment--could turn out to be anything but a bargain. Conversely, overspending for health insurance when a comparable, but less expensive plan is available, is a needless resource-drainer. As a former health insurance agent, I can confidently advise that the best way to save money while getting the coverage you need is to compare at least three different plans, point by point, with regard to the costs and benefits of each. An informed decision is the one most likely to benefit your pocketbook.

Things You'll Need

• 3 insurance agent presentations
• Comparison grid as found in references

Instructions

1. Invite at least three insurance agents to give a presentation of their company's health coverage offering. Ask about the A. M. Best rating for their company, which should be at least an "A" (excellent). An "A+" or "A++" is even better and signifies a financially strong company.

2. Listen carefully to the agent as she makes her presentation. Ask for specifics if any information is vague or hard to understand. Ensure that all benefits for treatments and hospitalization coverage are spelled out completely. Use a comparison grid such as in the reference ("Your Guide to Choosing Quality Health Care"), to note what the plan covers and doesn't cover.

3. Compare the benefits offered by each plan, and see which of the trio fits your needs the best. Then compare the cost of each plan to see which premium is most acceptable. If the best plan and the best premium cost are the same plan, then your comparison has led to the the best decision. If the best plan and the best premium are two different plans you can decide the more practical action by using the information you gathered.

Tips & Warnings

• Be upfront with the agents and tell them that you are making a point by point comparison against their competitors. If any of them seems unhappy with your approach, invite another one to take his place, until you obtain the information you need to make a well-informed decision.

References

• The Joint Commission: Helping You Choose Guides
• Minnesota Health Information Clearinghouse: Guide to Purchasing Health Insurance
• Agency for Healthcare Research and Quality: Your Guide to Choosing Quality Health Care

Resources

• A. M. Best: Best's Financial Strength Rating - Insurer