Easy Steps to Choose the Best Health Insurance Plan
It would be an understatement to say that the health insurance market is confusing. It is not easy for anyone to navigate this market, especially when they don’t have a lot of knowledge about how insurance works and how you should select your plan. Other people are ready to give their recommendations and advice, but you need to make the choice. This is because only you can know which plan can meet your unique lifestyle, family, financial and health needs. Nonetheless, you can still be very confused and in that case, these steps can be immensely useful. Follow these steps and you will be able to choose the best health insurance plan for your needs:
Step 1: Don’t forget to do your due diligence
Your work begins even before you start looking at plans. The first thing you need to do is take a look at your spending last year in order to estimate your cost for healthcare this year. Next, you need to take note of any medical expenses that you may incur in this coming year, such as birth of a child. This can be useful in weighing the risks and rewards of different health insurance plans. You also need to check if your go-to doctor is taking any new insurance that you may consider. You can call their offices to do so.
Step 2: Know what is HMO and PPO
You really do need to understand these acronyms if you want to make sense of any sort of health insurance information. An HMO is a Health Maintenance Organization plan under which you are required to use doctors and facilities that are part of the network, other than emergency situations. Under such a plan, you have a primary care physician (PCP), who will give you a referral to see a specialist, such as a dermatologist. The premium, which is the cost of these plans, is low and so are the deductibles, which is the amount you have to pay for healthcare before the plan kicks in. This is good if you want an affordable plan and don’t mind sticking to a set of doctors.
In contrast, if you want access to more providers and you don’t want to seek anyone’s approval, it is better to go for a Preferred Provider Organization (PPO) plan. It doesn’t require you to get a referral when you want to see a specialist. In addition, you can enjoy other out-of-the-network advantages i.e. the selection of doctors to pick from is greater. If you don’t mind a higher price and want more choice, a PPO plan is right for you.
Step 3: Think about the high-premium plan
It is a good idea to consider an insurance plan that has a low deductible and a high premium because you will be covered once you reach your deductible. For instance, check out these health insurance options in Utah. When the premiums are high, there is less chance of you paying from your own pocket. Moreover, a low deductible plan is also recommended for anyone who needs care more often than others. For instance, if you have asthma and have to see a doctor regularly and pick up prescriptions, it is best to go for a plan with a low deductible. But, if you don’t see the doctor often enough to hit your deductible, there is no point in paying a high premium.
Step 4: Explore the high deductible plan
There are some scenarios where a high deductible plan, which boasts low monthly premiums, is a better choice. To some extent, selecting a plan is about your risk tolerance. If you are healthy and have a high deductible plan, but experience an unexpected medical issue, you will be at risk for paying this deductible. This plan is good if you think you can pay this deductible up front or within a month and don’t think you will visit the doctor much later on. Ultimately, you should remember that it is a personal decision.
It is necessary to explore all the options that you have available and accumulate as much information as possible before you make up your mind about a health insurance plan. This will help you in choosing the best one that can fulfill your medical needs.
