How to Change Health Insurance Plans
Changing health insurance plans can be confusing. If your are switching from an employer-sponsored plan to individual insurance, it can be overwhelming sorting through the options and cost of health insurance plans. Choose health insurance that fits your needs and budget by comparison shopping. It's also important to handle the cancellation of your existing policy carefully to avoid lapses in health insurance coverage.
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Instructions
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List your health insurance needs. If you are in relatively good health, your insurance needs will be less than a person who requires routine care. Decide if you want insurance that covers a major emergency or more comprehensive coverage. Typically, the more coverage you require, the higher the insurance premium.
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Shop for health insurance. There are several different options for purchasing health insurance. If you have access to group health insurance with your employer, this is usually the cheapest option with the highest level of coverage. Options for people who don't have employer coverage are health insurance discount cards, individual insurance policies and group health expense sharing plans. Talk with a health insurance broker to find the right policy based on your circumstances and budget.
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Cancel your existing policy. Once you locate a new policy, contact your existing insurance company and cancel the policy. Ask the company to send written confirmation of the cancellation for your records. Keep this handy in case your receive an unexpected bill or have questions in the future.
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Set up monthly payments. If the policy is through your employer, payroll deductions are usually required. An individual policy might require payment for the first two months of coverage. Set up a monthly billing or automatic withdrawal with your financial institution to cover monthly premium costs.
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Tips & Warnings
If health insurance is unaffordable due to serious medical illness, contact your state department of health to learn about health insurance pools. These pools were created by states to provide affordable health care coverage to people struggling with serious illness. Health insurance will still cost money; however, premiums won't be unaffordable for people classified as high risk.
Avoid lapses in health insurance coverage. When you contact your existing health insurance company, request that the old policy stops after the new policy is in force. For example, if the new policy starts December 1, request the old policy stops December 2.
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