Best Tips for Choosing an Insurance Plan
Selecting the right health insurance plan for you and your family can be a very daunting task. Even those with employer sponsored health care plans can still have many questions. But there are many things you can do to make this challenge a little easier.
Past vs. the Present.
- The first thing you should do is to review how much money was spent on health related expenses last year. Did you meet your deductible? Did you pay more in premiums than it saved you? By looking at what you have done, it can help you adjust your plan for next year.
Future Insurance Needs: Expect the Unexpected
- Think about the upcoming year. Are you expecting a little one? Has someone in your family recently been diagnosed with a costly medical issue? If so, look into additional coverage. Examine deductibles, co-pays, and prescription costs.
- If you were one of thousands who paid more in premiums than it saved you in coverage, look for a cheaper plan. For example, healthy women in their twenties can get by with a plan with high deductibles and co-pays, as long as preventive care is covered.
Let Insurance Competition Compete
- Keep in mind that there are many insurance companies out there. If you are not employed with a company that offers a health insurance plan at a reduce costs, it is wise to see what else is out there. You may be surprised to find something less expensive.
- If you do work for a company that offers health insurance talk to your human resource manager about switching to a less expensive coverage or better coverage.
Company Contributions: Flex Savings Accounts vs. High Monthly Premiums
- Some companies will contribute funds to an employee and their family if they open a health savings account or flex savings account as opposed to paying for a higher monthly premium. For families and individuals with low health care costs it save them hundreds throughout the year and allow them to save pre-tax money for the future when their health care cost will be higher.
Professional Quantity vs. Quality
- Also, be sure to check which doctors and hospitals are covered under each policy you look at. If there are only a few doctors covered under a cheaper policy it may end up costing your family more if an ER visit is needed. If you like your current doctors, take the time to make sure they accept your new health insurance plan.
- You may find that limited dental and vision benenfits are included in your insurance plan. This would save your money each month from taking out an addition plan.
Seek Advice from an Insurance Broker
- If you need more help selecting a health insurance plan, considering talking to a broker. They will not only give you advice about what plans to consider, but they will also shop around for the best rates! Find a broker at National Association of Insurance Underwriters (nahu.org) or the National Association of Insurance Commissioners (naic.org).