Tips for Buying Health Insurance

Choosing a health insurance provider is one of the biggest decisions you will make for you and your family. Here are some tips to help you make the best personal decision.

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1. Affordability.

What can you afford to spend on health insurance? Granted, it is a necessity in today’s society, but there are limits to what we can afford. Be realistic—you don’t want to lose your insurance because you can’t afford to make a few premiums.

2. See what’s available.

You may have an option to purchase health insurance through your employer. These plans are most often HMO or PPO plans. Your employer may offset some of the costs of these plans, and therefore this may be a more affordable option, but be sure to see what the limitations of these plans are. Less expensive is not always the best way to determine if the plan is the right one.

3. Compare and Consider.

There are several types of health plans available to choose from--HMO (Health Maintenance Organization) , PPO (Preferred Provider Organization), POS (Point of Service), HSA (Health Savings Account—also known as MSA—medical savings account), and traditional indemnity, which is becoming less common as it is more expensive than the other plans. Carefully compare the pros and cons of each plan, and consider which will be more beneficial to you.

4. Shop around.

Get quotes from various insurance companies in order to make the best decision. By comparing various companies, you may save some money and also find greater benefits. Be sure that you are comparing the same type of plan, however, as prices and coverage of different plans will vary.

5. Kinds of coverage.

What are your needs? Are you planning on starting a family, and therefore in need of both maternity and child coverage, including immunizations? Would you like your office and/or hospital visits included in your coverage? Do you need coverage for prescriptions? Be sure to consider your current and future needs when shopping for insurance.

6. Doctors and Hospitals.

Another thing to consider when looking for health insurance is which doctors and hospitals are part of your provider network. Is your doctor included? Where is the nearest included hospital located? These are major considerations when choosing insurance coverage.

7. Pre-existing Conditions.

What are the limitations on pre-existing conditions, if any? Be familiar with the limitations of each plan. There are many insurance plans that place restrictions on accepting clients with pre-existing conditions, including waiting periods before coverage begins. If you have a pre-existing condition there may be other options for you—contact your State Insurance Department.

8. Take your time.

Don’t feel pressured to make an instant decision because you need coverage—and don’t let anyone pressure you into buying the wrong plan. You don’t want to sign and pay for something that is essentially useless to you.

9. Read before signing.

Be sure to carefully read the contract of the plan, and don’t be afraid or ashamed to have someone explain it to you. This is an important decision, and you need to know that it will provide the benefits to cover your needs.

10. Never pay cash.

Always use a check or money order when buying a policy so that you have a record of your purchase. Unfortunately there are those out there who prey on people in need, and this can help to protect your interests. Never make any payments to the agent—always to the insurance company.

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