In the current economy, a solid health insurance policy may protect the life savings of anyone who gets in an accident or contracts a serious illness. But health insurance companies are not created equal. With so many insurance companies selling health policies in each state, consumers may well be confused by all of the information coming their way. It's important to make the choice that's right for one’s needs and budget.
Health Insurance Policies Have Similar Benefits
Most health insurance companies offer a selection of plans with very similar benefits. The most well-known plan is the typical individual major medical policy, which covers physician services, inpatient hospital stays, inpatient and outpatient surgeries, prescription drugs, X-ray and laboratory services, skilled nursing facility care, home healthcare and rehabilitation, up to a lifetime maximum amount.
Other health insurance offerings include value plans, which may have reduced coverage for prescriptions or rehab, and so-called consumer-directed health plans or CDHP plans. A CDHP policy is usually designed with a very high deductible, but in return, it may have a relatively low monthly premium. It’s designed to work with a tax-favored health savings account or HSA and can be an excellent option for some consumers.
Each of these health insurance plans generally offer a range of deductible and copayment options from which to choose, so the consumer can pick a plan suited to his or her needs and budget.
Choosing the Right Health Insurance Plan
The differences among companies that sell health insurance can be found in price, customer service and reputation. When it comes to price and benefits, here are several points to consider when searching for the right insurance plan:
- Shop around. Gather information from representatives of several insurance companies in the area.
- Evaluate premium prices. Keep in mind that the plan with the lowest premium is not necessarily the best; price should not be the only factor to consider. However, with healthcare costs rising each year, it's a very important factor.
- Look for added value. Some companies provide their customers with various value-added services, such as online health libraries, wellness programs, discounts on vision and hearing services or prescription drug discount cards.
Selecting the Best Health Insurance Carrier
Be sure that the company has a reputation for good customer service, as well as for strength, financial stability and longevity in the market area.
- Find out what level of customer service and support a potential insurance carrier offers.
- Look for conveniently located offices with knowledgeable sales and support staff to answer questions.
- Make sure the carrier will file claims automatically, with no additional paperwork.
- Ask whether the company offers toll-free telephone customer service throughout your area, as well as a customer service e-mail address. Some companies even offer online self-service account management via the internet.
- Look for a well-known name that doctors and hospitals will recognize and accept.
- Financial stability is crucial; no one wants to get stuck with a policy from a carrier that might not last.
- Longevity is a good indication of a company's strength and value.
- A company's size can be an important factor. Larger companies can take advantage of economies of scale and absorb large claims or fluctuations in the health insurance market.
Finally, anyone shopping for health insurance should take his or her time in choosing both a health insurance carrier and plan. This is an important decision that affects one’s health and financial security. Don't hesitate to call an insurance agent more than once to make sure all questions are answered. The consumer who chooses with care can feel confident that his or her policy will provide protection for years to come.
Robin Mayhall - I'm a versatile writer and editor with more than 20 years of experience, and I personally battle rheumatoid arthritis.
