What Should I Look for When Buying Health Insurance?

[Spencer88]

Buying health insurance for individuals, families or small businesses can seem daunting at first, but it doesn't have to be complicated. Of course, there are some things you should pay attention to. Price is always a factor, and it's often difficult to judge.

It really comes down to how much you want to pay. How much can you afford to pay each month? As with car insurance, the same is true here: The more money you pay each month, the better financially protected you'll be if unforeseen expenses arise.

Far too often, consumers only look at the monthly premium when it comes to finding the right health insurance plan for them.
Monthly cost should definitely be a factor, but focusing only on price can lead to problems and cost you more in the long run. So what else should you consider when choosing health insurance?

Below is some basic, but important information to keep in mind when purchasing health insurance:

Premium

This is the total cost of health insurance by getting short term health quote that you, as a consumer, pay either monthly or in full. How much you pay depends on the benefits included in the plan. Please note: This amount is independent of your deductible.

To keep costs down, there are some factors you can influence to save money: Your deductible, co-payments and co-insurance.

The infamous deductible

The deductible is a fixed dollar amount that a policyholder must pay before the insurance company will pay for most services. It is the total amount you, as a consumer, must initially pay for all medical expenses you receive during your coverage period. The cost of medical services above this amount will be covered by the health plan according to the terms of the policy (e.g., copayments and coinsurance may still apply).

Co-payment

This is the cost the consumer pays in addition to their premium each time they visit a doctor or specialist. Copayments also apply to emergency room visits, urgent care visits, and prescription drug purchases.

Please note: Co-payments (or co-payments) do not count toward your deductible and remain your financial responsibility even after you meet your deductible.

The amount of your co-payments depends on how much you pay each month for your health insurance. Generally, the higher your premium, the lower your co-payment. Conversely, lower premiums usually result in higher co-payments. So if you take prescription medications or need to visit the doctor frequently, you should invest in a policy with lower co-payments.

Coinsurance

This is the percentage of a medical bill that you must pay yourself after the health insurance company has paid its share by giving shared health insurance quote. The amount the health insurance company pays depends on your benefits and is not due until you reach your deductible.

Please note: Coinsurance is paid in addition to your deductible.

The money you pay each time you see a doctor will be applied to your deductible. Once you have paid the total amount (i.e., met your deductible), you will still be responsible for coinsurance.

Provider Network

We've all been there. You or your child gets sick and you go to your preferred doctor, only to find that your insurance is not accepted there. Then you either have to pay out of pocket and hope your insurance company provides a good out-of-network benefit, or you have to start looking for a new doctor you don't know. The provider network is always available online and up to date.

Check to see if your providers and hospitals are covered. Some short-term health insurance plans have no network, meaning the insurance company pays an amount based on services rendered at almost all providers. In this case, it's best to check with your insurance company to see what it covers, and make sure your provider's prices match those of the insurance company.