There’s a lot more to comparing medical insurance plans than simply looking at the premiums. Copays, deductibles, and coinsurance fees may all be different, so one will have to take a close look at all the out-of-pocket costs when comparing health insurance plans.
What to Look for Before Buying Health Insurance
Deductible: The deductible is how much one will have to pay out of their pocket before the plan starts to offer coverage. This amount is usually printed beside the premium of a plan. The deductible is usually conversely linked to the premium. This means if one opts for a high deductible, the premium will be lower, and vice versa.
Prescription drug coverage: If someone in the family relies on prescription medication, it’s important to opt for this coverage. Keep in mind that if the drug is expensive, one may incur a lot of expenses. In most cases, it’s better to pay a higher monthly premium for this additional coverage than pay out-of-pocket for medications each time there is a need.
Provider network: Most health insurance plans require policyholders to seek care within the network. If one receives medical attention from a provider outside the network, they may incur significantly more expenses. So, make sure to check if a good number of local doctors and hospitals accept the plan one intends to buy.
Cost: Premiums are affected by a range of factors, including the type of insurance one is buying, state and federal laws, county of residence, one’s age and tobacco use, etc. Given this, it’s important to compare the premiums of multiple plans before signing on the dotted line. Keep in mind that with health insurance plans, the cheapest may not automatically be the best option. Prospective health insurance buyers should, instead, look for medical insurance plans that have an affordable premium and sufficient coverage.
The most affordable health insurance option for most people is an employer-sponsored health insurance plan. However, if this is not an option, one may want to consider applying for a Marketplace plan. Those who are over 65 may be eligible for Medicare.
