With the increasing cost of healthcare, it has become essential for individuals and families to have an insurance policy.
In fact, the US spends more on healthcare per person than any other country, and the cost averages at about $9,237 as of 2017. As such, it’s encouraged to get an insurance policy to help lighten the burden of paying for healthcare.
The problem is that not all policies out there suit you. It helps to take the time and find a plan that works best for you.
Read on to learn more about insurance shopping tips.
Top 5 Health Insurance Shopping Secrets
1. There’s No Right Time
When it comes to health insurance, there is no right time for buying one. So, don’t put off buying one with the hopes that there will come a time when it will be appropriate. Some people tend to wait until the end of Open Enrollment to buy one. This can be hectic as you’ll have to do so with a million others, resulting in long hold times.
Or, you can buy during the special enrollment periods, which are ideal if you want to switch or upgrade your plan due to life changes. So, when you get a baby, or you lose your job, get one as soon as possible. Plus, you don’t know what the future holds, so it doesn’t make sense to put off health insurance. Make sure to have enought time to learn more about affordable health insurance companies before you make your final word. If you want to take out life insurance, then it could be worth checking out these Primerica Reviews.
2. Understand How Your Plan Will Work
Before buying a policy, take the time to know how it’s going to work. You need to know the kind of doctors the network offers and if you need a referral to visit a health specialist. You should also know what prescription drugs are covered. Learning all these details will help you prevent unnecessary costs in the future.
If a drug you need is not in your plan, then it cost you to get it. Experts also recommend learning all the essential health insurance terms, such as deductibles, coinsurance, and co-pay. If you don’t understand your policy well, then it might be true that you don’t understand what you’re paying for.
3. What’s Your Budget?
Making an informed decision about the right insurance plan starts with the money you can comfortably pay for your plan. It’s easy to overspend or get insufficient cover if you lack any kind of budget plans. According to insurance experts, you should at least spend 5 percent of your annual gross income on insurance premiums.
Keep in mind that your finances are necessary, and so it’s your health. Look at your deductible – the amount you’ll pay before your policy kicks in – and your monthly premiums to determine precisely how much you need to pay. If you pay a high deductible, you’ll pay low premiums. For those who’re planning to become pregnant in the future, you should take that into account, too.
When budgeting, consider debt consolidation to pay multiple debts faster so you can focus on paying your premiums comfortably.
4. Take Benefits Into Account
With the Affordable Care Act, you don’t need to worry about a lot of things like the past. All insurance plans nowadays come with essential benefits, such as free preventative care, outpatient care, prescription drugs, lab tests, pediatric services, pregnancy care, and emergency room services. Whatever the case, it still helps to review the whole package to determine the benefits that it offers.
You should make sure your doctor is on the network. An HMO plan is usually strict about the doctors you can use, but it’s still affordable than a flexible PPO plan. When it comes to drugs, branded options tend to be costly than generic ones. These are some of the things you should reflect on when it comes to reviewing the benefits.
5. Low Premiums Doesn’t Mean Cheap
When shopping for insurance plans, many people tend to go for low premium plans in the hope that they will incur low costs over time. That might not be necessarily true with health insurance plans. Most of the low premium plans are co-pays, so they only pay for a small percentage when you use a service.
Typically, you need an option that won’t have significant out-of-pocket fees. Your premiums generally depend on your choice of insurance. For example, HMOs don’t come with deductibles, so your amount of coverage will depend on your monthly premiums. With PPOs, you can choose a high-deductible plan, and this means low monthly premiums for you.
The good thing about a high-deductible plan is that you’re eligible for a Health Savings Account (HSA). In this case, you can reduce your tax burden and save money to cover your health care costs.
The Bottom Line
Open Enrollment for policies on Health Insurance Marketplace tends to end on Dec 15. So, if you’re planning to get one, this is the time to do that. High deductible plans are great for people who are generally healthy and don’t have kids. Be sure to narrow down your choices to just a few policies after estimating your expected medical costs for the coming year. Also, don’t forget the features of your plan such as plan structure, network size, and out-of-pocket maximums.