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How to Find the Best Health Insurance
There is no single health insurance type or policy that is right for everyone, so it is important to carefully examine your current and future health care needs before making a decision to purchase a policy. In this guide, we'll give you some basic guidelines for evaluating and selecting the health insurance plan that is perfect for you.
Selecting a Plan Type
Most health insurance policies are one of three basic types -- the HMO, the PPO, and the Indemnity Plan. An HMO is perhaps the most familiar type of plan, which provides you with convenient, inexpensive access to a range of practitioners and services within a single network. Often, you will be restricted from seeking care outside the network, and there may also be stringent controls on the specific types of services, procedures, and medications available on your HMO plan. HMO plans are relatively inexpensive, so they appeal to anyone who is looking for a great deal at the cost of putting up with a few restrictions.
A PPO is somewhat similar to an HMO, but you often have more flexibility in seeing providers and obtaining services. However, be prepared to pay an out of network fee or percentage if you do not get care or referrals through your primary practitioner. Because providers are not prepaid for their services as in an HMO, they are less apt to put restrictions on care, meaning that you get top-quality care at a slightly higher price than with an HMO.
Finally, the traditional indemnity plan, in which you can seek care anywhere and get reimbursed for it later, is not as common today as it was in the past. However, it still offers a viable health insurance solution for individuals who need a great deal of flexibility in obtaining care. In addition, it is a great choice for young, healthy people who want an inexpensive high-deductible plan.
Selecting Other Plan Options
Once you've selected a plan type, there are still further decisions to be made to customize your policy. The most important detail concerns your deductible, which is the amount of money you will have to pay out of pocket for your care before your plan officially "kicks in". Healthy individuals who don't expect to utilize much health care can select a high deductible, but if you will visit a doctor or get a prescription more than once or twice a year, it often makes sense to choose a lower deductible.
In addition to your deductible, you should factor copays into your decision. A copay is the amount you pay each time you use a health service. As with deductibles, choosing a small copay is essential if you plan to utilize health care frequently. Some types of health insurance plans implement an alternative method in which they charge you a percentage of your bill each time you utilize health care -- for example, 5 or 10 percent. This system can work for some, but keep in mind that if you have any significant injury or illness, you may end up with a huge bill. However, if your insurance plan has what is called an "out of pocket maximum", you only pay that percentage until you reach a certain amount, at which time the plan kicks in to cover 100 percent of your care.
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