Scanning through the many options for health insurance, many are immediately drawn to plans with the lowest premium, or monthly cost. There are a few important reasons why choosing the cheapest plan isn’t always the best option. If you have a health condition, or plan on seeing doctors often, or need medication, the cheapest plans will often leave you paying out-of-pocket for everything, in addition to the premium.
In other words, at the end of the year, you’ll have spent more than you would have with a better plan with a higher premium. Generally, a higher premium means that more medical expenses will be covered, and the deductible will be lower.
You need to look at what the plan offers in terms of copayments, coinsurance, deductibles and premiums, and budget your expected health needs.
Many people take prescription medication consistently. Before you decide on any plan, you need to make sure the plan covers the medication you need, or you’ll be stuck paying a lot of money out-of-pocket. Also make sure you understand the refll policy.
This is one reason why there is no one plan that is best for every individual. Every person has different needs, and the different plans available are a better ft for some than others. What makes sense for one family might be unnecessary for another.
Sometimes physicians or hospitals don’t have a connection with certain insurance groups. Verify with both your preferred doctors and with the insurance company that they work together. Sometimes insurance plans do no cover any cost associated with doctors not in the insurance company’s network.
Some insurance companies will offer plans with perks and incentives that are worth paying attention to. For example, a plan may offer an especially discounted co-pay for visits to a doctor. This could amount to substantial savings for a family over the course of time.
