Choosing health insurance can be confusing, especially if you haven’t had to shop for plans in a while. Not long ago, most people could just pick a plan close to the one their employer offered. Now, with the changes brought about by the COVID-19 pandemic, many people have had to buy new health insurance.
It can feel like a complicated venture, but buying health insurance isn’t as complicated as you might think. By knowing a few key points, you can relax, knowing you’ve selected the best plan available. Read on and learn how to select health insurance plans for you.
Type of Plan and Provider Network
There are four main types of plans. Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), Exclusive Provider Organizations (EPOs), and Point-of-Service (POS) plans.
HMOs typically have the lowest monthly premiums, but they also have the most restrictions in terms of which providers you can see. PPOs have higher monthly premiums but provide more flexibility in terms of provider selection. EPOs and POS plans fall somewhere in between HMOs and PPOs in terms of affordability and provider flexibility.
Once you have selected a plan type, you will then need to select a provider network. In-network providers have contractually agreed to accept the insurance plan’s negotiated rate, while out-of-network providers do not have such an agreement. This means that if you see an out-of-network provider, you will likely have to pay more out-of-pocket.
Co-pay or Coinsurance
One of the things you’ll need to decide is whether you want a plan with a copay or coinsurance. A copay is a set amount that you pay for a medical service, like a doctor’s visit or a prescription. While coinsurance is a percentage of the cost of a medical service that you pay.
There are pros and cons to both copays and coinsurance. Copays are usually less expensive than coinsurance, but you may end up paying more out-of-pocket if you have a lot of medical expenses.
Coinsurance may cost you more upfront, but you’ll usually pay less out-of-pocket if you have a lot of medical expenses. Comparing insurance costs might be confusing, but reading online reviews might help you decide which plan you should get. You can also read more about coinsurance to understand it better.
Coverage of Medicines
One important factor to consider when you select health insurance plans is the coverage of medicines. Some plans have limited drug coverage, which means you may have to pay full price for your medications. Other plans have comprehensive drug coverage, which means your medications will be covered either partially or in full.
When considering a plan, be sure to check the list of covered drugs to see if your medications are included. You can also ask your doctor or pharmacist for help in selecting a plan that covers your medications. You can also click here for more information about what types of plans would best suit your needs.
Select Health Insurance Plans Best For You
Choosing a health insurance plan can be a daunting task, but it is important to do your research to select the best plan for you and your family. There are a few things to consider when choosing a health insurance plan, such as the type of coverage, coverage of medicines, and the network of providers. Once you have considered these factors, you can begin to compare plans and select health insurance plans best for your needs.
Looking for more health tips? Check out our other health-related articles before you leave.
