How to Pick the Best Health Insurance
Health insurance is a critical component of a family's financial plan. Without health insurance, most families would be one accident away from financial ruin. Fortunately, a financial catastrophe can be avoided by carrying the right type of coverage. You may have several health plans to choose from, and picking the best type of insurance will depend on who you are and what you need it for.
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Instructions
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Examine your needs. If you're the type of person who rarely uses health care, consider purchasing a high-deductible plan. These plans are made for those who would use insurance only in the event of a catastrophic illness. Premiums are low but deductibles are high, which encourages shopping around for the best price.
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Choose a health maintenance organization (HMO) plan if you want your health insurance to focus on preventative care for a fixed cost. Choose an exclusive provider option (EPO) plan if you want your health insurance to focus on low premiums and you do not mind restricting your choice to doctors in the EPO plan's network. Choose a preferred provider organization (PPO) plan if you want more choice than an HMO or EPO plan offers in which doctors you can use. PPO plans encourage you to choose from a network of doctors who offer discounted fees. You can still choose a health care provider from outside the network, but you'll have to pay more for services in the form of higher co-pays and co-insurance.
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Budget for the insurance. You need to weigh the cost of the plan you want with what you can afford. Some plans, like so-called "Cadillac plans," while nice, may be unaffordable. It's also helpful to look at which insurance plans offer the same or similar coverage for the lowest premium cost. Since each health insurance company is slightly different in what it offers to customers, you need to compare the plans of the companies you want to buy your health coverage from. Internet resources (see the Resource section for a link) can help you compare popular health insurance plans.
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Buy from health insurance companies that have reliable claims-paying ability, have the fewest complaints and offer enough doctors in the network so that you can take advantage of services when you need them. For example, if your health insurance company offers inexpensive plans, it does you no good if few or no doctors accept that insurance company's plan in your area. Rating agencies, like A.M. Best, rate insurers in terms of overall financial strength. You can also ask family and friends about their experiences with a company you are considering. Sometimes your doctor can give you his experience with various insurance companies.
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References
Resources
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