How To Choose A

Health Insurance Plan

Are you planning to buy health insurance, but not sure where to start? With so many different alternatives, how do you know which one to choose?

First order of business -- when you're choosing a health insurance plan, never base your decision solely on the cost of the monthly premium. There are many other cost factors -- deductibles, co-payments, and the like -- that will determine the true price tag of your insurance. You'll need to read the fine print of the health insurance plan, including what it does and does not cover, the in-network versus out-of-network coverage and costs, claims processing procedures, and the coverage limits.

Know Your Health Care Needs

The first step in outlining what to look for is to review your particular needs. Are you looking for coverage just for yourself, do you need a family plan, or something in between? Next try to assess the health needs for all those you intend to include on your health insurance plan. Are you and the others basically in good health? Are there any pre-existing conditions to consider? Does someone need to have access to certain medical specialists or medical institutions?

Research and Compare Your Options

Knowing the answers to the above questions will give you a good starting point in your search for the right health insurance plan. Next, you need to know about your options. If you're getting group insurance through your employer, your options will be limited to what the company is offering, which may or may not make this decision easier. Otherwise, you'll need to do more research and comparison shopping. At a minimum, you've got to understand the difference between the 2 basic types of health insurance plans offered today: the Indemnity Plan, and the Managed Care Plan with its variants.