Finding the right health insurance plan is very important. Healthcare is outrageously expensive in the United States. As such, even a relatively minor incident, like a broken bone, can destroy your financial stability.
Your health insurance plan needs to be affordable while still offering extensive coverage. Discovering a plan that fits these criteria is, of course, easier said than done.
While you carry out your search for a new health insurance plan, be sure to keep these four considerations in the back of your mind.
Premium & Deductible
Your premium is the monthly price you pay to maintain your health insurance plan. A low premium is, for obvious reasons, a very attractive quality when looking for a health insurance plan.
However, keep in mind that insurers often offer low premiums in order to attract consumers while requiring expensive deductibles.
In some cases, this might be ideal. People in generally good health might be better off choosing a low premium over a low deductible. Your deductible is the amount that you have to pay before your insurer pays out your claim.
If you rarely need to visit the hospital, then the money you save on your premium might be worth it.
However, individuals in moderate to poor health might consider opting for a higher premium in exchange for a lower deductible.
Before picking a plan, be sure to ask yourself, is the lower premium worth a higher deductible?
This applies primarily to individuals who are already taking prescription drugs for a chronic illness.
Certain individuals have to take certain medications for their entire life in order to keep their health in check. If this applies to you, you should perform a thorough evaluation of potential health insurance plans to ensure that your prescriptions are covered.
Ask potential insurers for a formulary. A formulary is a list of the drugs covered by a health insurance plan.
Health Savings Account (HSA)
You should also consider whether or not you are interested in contributing to a health savings account (HSA).
An HSA is essentially a personal savings account which you can use to pay for any medical expenses. This is a great option for anyone who has spare income to create a healthcare emergency fund.
According to HealthEquity, single individuals can make up to $3,500 in tax-deductible contributions and families can make up to $7,000 in tax-deductible contributions.
In order to qualify for an HSA, your insurance plan has to support it and you cannot be claimed as a dependent on someone else’s tax return.
A health savings accounts is a great way to protect yourself against unexpected health expenses.
Check if Your Doctor will Remain in Your Network
A lot of people remain with the same doctor for years. In that time, you might have gained a lot of trust in your doctor to the point that you feel uncomfortable being treated by another physician.
If you’re in this situation, you should check to make sure that your doctor is in the network covered by your new insurance plan.
If you aren’t committed to a specific doctor, you should still check to see which doctors are in your new network.
Finding a new health insurance plan can be a daunting task, but taking these factors into consideration can help make picking the perfect plan for you a much easier process.