Shopping and comparing health insurance costs can be a nerve-wracking ordeal – especially if you’re not familiar with the process. Simplify your search by breaking down a checklist of easy steps to follow. That way, you can narrow down your options without being overwhelmed by the different types and prices.
Not sure where to start? Here are four things to check before you buy health coverage.
How to Calculate Your Total
When shopping for health insurance plans, we always look at the premiums first. However, there are additional expenses that need to be taken into consideration. If you’re on a budget and want to know the total cost of the plans, add and compare the following expenses:
- Premium
- Deductible
- Out-of-pocket expenses
- Copays or coinsurance
Your total cost of care will depend on how often you’re expected to use the service. Policyholders who are in good health and have no preexisting conditions usually prefer high deductible health plans. Those that are expected to make use of the care more frequently benefit more from higher premiums because they offer more coverage.
Check Network Hospitals
It costs less to see in-network doctors because insurance companies contract lower rates with these kinds of providers. When you see an out-of-network doctor, you don’t have the prices that you would usually pay within your plan.
One of the first things to check before buying insurance is if your preferred doctors are in the provider directories for the plan you’re considering. You can also consult your local GP for what insurers they accept. If you don’t have a preferred one, choose a program with an extensive network so that you are more likely to find a medical professional within that network.
What Stage of Life You’re In
Health is the greatest asset you have, but your needs change with age and what stage of life you’re in. The same health coverage you have in college may not be enough when you marry and start a family. Ideally, you want a health insurance plan that encompasses every aspect of your life with 360° protection. Here are the types of coverages for each age group:
Your 20s
While most people in this age group have insurance from their employer or for its tax benefits, some risks come with any age. Your personal health requirements should be met in the event of common diseases and accidents that could occur.
Your 30s
In addition to personal coverage, if you marry and plan on having children, your insurance plan should reflect that. Look for policies that include maternity, postnatal care, and comprehensive coverage for you where your employer’s healthcare plan doesn’t.
Your 40s
As you age, your need for screenings and preventative care will increase. Also, as children grow up, they are prone to illnesses and accidents in school-related activities. Not having coverage in this critical period can put a damper in your savings.
50 and Over
When your children become adults, they’ll come up with their own plans. By then, it’ll be time for you to switch to individual coverage again and cater to your specific needs.
Bonus tip: look for health insurance plans that have the lifetime renewal feature. It guarantees coverage under the same health insurance provider no matter what. Lifetime renewal coverage allows you to continue your coverage for as long as you wish, no matter your age range.
See If You Qualify For Tax Credits
When you select a plan using Health Insurance Marketplace, you might be able to lower your premium through tax credits. Your tax credit is based on your income and household information, which is prompted when you fill out their application.
You qualify for premium tax credits if you fall within a certain bracket after your estimated income and household size are calculated. Then, it is up to you to decide if you’ll use as much (or as little) of your premium tax credit in advance to lower your monthly premium.
If you choose to use more of the tax credit than you qualify for, you have to pay the difference when you file your federal income tax return. However, If you use less, the difference will be refunded. Keep in mind that the premium tax credit is only offered through the Health Insurance Marketplace.
Conclusion
Choosing the right health insurance plan for you and your family needn’t be a difficult task. With research and careful consideration of your expected medical needs, the options become clearer.
Taking the necessary steps to prepare and know what to expect will help you decide on what health insurance plan is best for you. Think about any life changes you’re anticipating, your budget, and your health history to ensure you’re getting the best quality care for your buck.
