Insurance for Newbies
Protecting yourself and your family with health insurance is one of the most important decisions you will ever make. Unfortunately, it is also overwhelming and confusing. Shopping for health insurance can be a daunting task if you don’t know what to look for or prioritize when trying to decide on a plan.
Below are some tips from a licensed agent with over 10 years of experience and training in the industry:
- Research your options online through an unbiased site, such as www.ehealthinsurance.com or www.healthcare.gov
- Call your local insurance agent to find out if selling your current plan is a possibility and how much it’s going to cost you in commissions.
- If you can't decide and need additional assistance, consider using a broker as they have been trained to use the guidelines above in order to provide you with an independent opinion on which plan is best for you.- Get some free quotes from different companies or talk to people who have used the plans in question. The more options that are presented to you, the better!
- Make sure that your healthcare provider knows what insurance company you are using and what level of coverage they offer.
- If you are self-employed, make sure that you file a W-2 with your insurance company in order to get the proper tax deductions.
- Try to look for plans with the most coverage at the lowest possible price.
- Make sure that you keep all insurance forms in one place (even if they’re on your computer) so that you have them handy when needed.
- Make sure that you fully understand what each form is for and why it is necessary. The forms will help when it comes time to sell or buy a new plan.
- You may want to think about getting these forms in electronic format from websites such as www.ehealthinsurance.com, www.filesharing.com, www.kogodocuments.com or www.pdfarchive.com
- If you decide to opt for an individual policy, you can add a rider that will cover one more person, so you don’t have to pay any additional money out of pocket for pre-existing conditions or children (unless there is coverage from their parents).
- Make sure that your doctor and pharmacist know who your insurance company is because they may not be paid by the company in order to keep them loyal and part of the plan.
- Make sure that you understand your current insurance plan and what it covers. If there is something new that has come up, read through your policy to see if it is covered.
- If you are happy with your current doctor, try and keep seeing him or her even if it means switching insurance companies.
- If you have an insurance plan that has a low deductible, a high co-pay or co-insurance rates, but overall has a high premium, look for another plan with similar coverage but lower monthly rates.- You may want to get an ARB (annual maximum benefit) rider on your plan to ensure that you are not denied treatment for any procedures in the future.
- If you have to go to the hospital or clinic on a regular basis, it is important to ensure that your insurance policy covers these visits as well.
- Longer plans tend to have lower monthly premiums but you may want to opt for a shorter term plan so that you are not paying for extra time if you do not need it.
- Consider using eHealthInsurance, which allows you to compare prices and coverage plans from all major insurance carriers (Aetna, Blue Cross Blue Shield, Cigna, Coventry, Humana , UnitedHealth Group and many more) in one place. eHealthInsurance can assist with comparing benefits and finding the right plan at the same time.
- eHealthInsurance is available in 50 states plus the District of Columbia and Puerto Rico.
- If you are living in a state that requires that your insurance company be an “authorized agent” or a “licensed agent,” compare plans between agents to find the best price for your situation.
- All insurance carriers have different deductibles (amount that you pay if you have to go to a doctor or hospital), co-pay rates (percentage that you pay) and co-insurance rates (percentage of total charges paid) - as opposed to being paid by your insurance company after paying higher premiums.
- If your health coverage is suffering from a much higher premium, consider buying a short term plan (less than 12 months) to save money or selling your plan and buying a new one in the future.- It is important to understand what each rate is associated with. For example, if you are paying $400 per month for a specific plan and the co-pay % is 25%, it means that you will have to pay $25 out of pocket for any single visit to your doctor. So, if you go in once every two months, then you will be paying $25 x 4 = $100 each time. This is a high co-pay rate. - Carefully read each plan's fine print so that you know what you are getting for your money.
- You may want to pay close attention to the deductible amount and co-insurance percentages, especially if you go to a doctor or hospital once every two months.- It is important to understand what each rate is associated with. For example, if you are paying $400 per month for a specific plan and the co-pay % is 25%, it means that you will have to pay $25 out of pocket for any single visit to your doctor. So, if you go in once every two months, then you will be paying $25 x 4 = $100 each time. This is a high co-pay rate. - Carefully read each plan's fine print so that you know what you are getting for your money.
- You may want to pay close attention to the deductible amount and co-insurance percentages, especially if you go to a doctor or hospital once every two months.
- If your company offers matching contributions for the premiums of your health insurance plan, find out if it makes more financial sense to use that money in investing in bonds or stocks instead of using it on health insurance premiums.- If they match 50%, then investing extra money will earn you $5 billion dollars per month at 8% interest .
Conclusion: If you decide to stick with your current plan, the payments and deductibles may be worth it in the short term. Some people prefer to pay a little extra each month so that they can afford better emergency coverage in case of an unexpected emergency. If you want to switch plans, however, make sure that you shop around for one that has similar benefits at a lower cost per month. Keep in mind that medical bills are not always covered by your insurance; if something were to happen outside of your plan's network, you will most likely be responsible for the costs.
What are some ways to save money on a healthcare insurance plan?
There are many different options available today for people who want to save money on their insurance plan.
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Insurance for Newbies