10 Things you need to
Know about Health Insurance
1. Insurance is expensive, but not having any costs a lot more.
Consider the out-of-pocket costs of just one doctor's appointment.
This could be hundreds of dollars, which would be unexpected
expenses. Now consider the Medical bills from a minor car accident.
This could deplete your savings. A major illness, however, could
push you into bankruptcy.
2. Shop around for insurance and compare plans.
Typically, group coverage that is offered by your employer will be
the cheapest. But if you are self-employed or your employer does not
offer health coverage, be sure to shop around and compare plans
carefully before committing to one healthcare plan.
3. Comparing plans is tough but necessary.
Unlike home owner
insurance, there are no standard coverage plans. Benefits and
costs will vary from plan to plan. Consider your situation and what
is important to you. Make sure the plans you are interested in cover
the items that you need.
4. Finding a low premium doesn't always mean it's the cheapest
plan.
Think about what value you are getting for your dollar. If your
health insurance premiums are low, are your co-pays high. Do you
have an prescription coverage? Are check-ups and urgent care
covered? The lowest health insurance premiums aren't always the
cheapest. Look for value for your dollar.
5. Even good coverage can have missing pieces.
Good healthcare plans will cover a hospital stay and doctor visits,
but look into benefits for mental health, prescription drugs and
dental care. These are strictly optional.
6. More freedom equals more money from you.
Plans with the most coverage at the lowest cost will require you to
use a specified network of hospitals, doctors, labs and other
providers. The more flexibility you demand, such as staying with
your family physician, the more money you'll pay in either premiums
or co-payments.
7. Check out networks before signing up.
More often public and private sources compile information on the
track records of individual doctors, hospitals and health plans.
Look into them to ensure you are getting what you are paying for.
8. If you lose your job, you can keep your insurance.
If you lose your job, state and federal regulations protect you from
losing your health coverage. However, you may need to pay higher
premiums so be sure to shop around for the best rates.
9. Take into consideration your spouses healthcare benefits.
If you and your spouse both have health insurance through your
employer, figure out which plan would give you more benefits at a
cheaper rate - or if it would make sense to keep your plans
separate. If you have children, think about which plan would be best
to have them covered under. Talk to an agent if you have any
health insurance
questions.
10. Look into tax breaks when considering health insurance
savings.
Medical expenses, including insurance premiums, are typically tax
deductible if they exceed 7.5% of your income. You can also look
into flexible spending accounts, which is like a pre-tax savings
account that can be used for medical expenses. |
Insurance
Articles
|
