The first time you beginning shopping for a health insurance policy be prepared for a shock. Why! There are just so many different choices and the vocabulary of health insurance is almost like a foreign language.
First of all, how do you choose the best policy? Surprise! There is no “best” health insurance plan. Each policy has its pros and cons. A policy that’s perfect for a single person may be a disaster for a family with children. And to cloud the issue even further the plan that works for one family may not be a good fit for another family.
Here’s an example: If there are just two adults in your family it may cost less for each of you to have an individual policy rather then the two of you have a family plan.
If you have children, or you are planning on children, there is no doubt that you will need a policy that will cover everyone.
Selecting a health insurance plan is just like making any other major purchase. First you do a little research so you have some basic knowledge about health insurance. Then you start shopping and asking questions until you find the plan that meets both your needs and your budget.
Your basic challenge is deciding which plan is worth the cost. Just remember, plans that allow you the most choices in doctors and hospitals also tend to cost more than plans that limit choices.
Plans that help to manage the care you receive usually cost you less, but you give up some freedom of choice.
Cost of the plan isn’t the only thing to consider when buying health insurance. Carefully review what benefits are covered what ones are not. It’s important for you to compare plans for both cost and coverage.
Cost isn’t the only thing to consider when buying health insurance. You also need to consider what benefits are covered. You need to compare plans carefully for both cost and coverage.
As you shop you will quickly become accustomed to the many names for health insurance plans. You can group the three main types into these categories:
Fee-For-Service – Traditional Health Insurance
HMOs – Health Maintenance Organizations
PPOs – Preferred Provider Organizations