Posted by Corinne M. on Thu, Mar 25, 2010 @ 04:33 PM
In my last post I gave some tips for determining what benefits you need in an individual health plan. By now you probably have an idea whether you need a plan with basic benefits, a plan with a wider range of benefits and options, or a HSA-compatible plan. Now it's time to take a look at your health care budget so you can get this coverage most affordably.
Monthly premiums are the first cost to consider. Basic benefit and HSA-qualified plans are designed to have low monthly premiums, and more comprehensive plans with richer benefits are generally going to cost more. It's a good idea to see how different coinsurance and deductible choices affect a plan's monthly cost - you can choose a higher annual deductible to reduce your monthly premium.
Next, consider your other out-of-pocket expenses. Choosing a plan with cost sharing elements may bring down your premium. (Examples of cost-sharing include doctor's office visit copays, Rx drug copays, annual deductibles, coinsurance, out-of-network or emergency room deductibles, etc.) Many people who need basic coverage appreciate their low monthly premiums and are willing to cost-share when they utilize their health plan. On the other hand, some would rather pay higher premiums for a plan that offers more first-dollar coverage.
This is why it's important to check your plan for first-dollar benefits - these are medical services your insurance policy will pay for without first requiring you to pay out-of-pocket towards your deductible and/or coinsurance. For example, your plan may pay up to a certain dollar amount for preventive care services before you participate in any cost-sharing. Or you may have a Rx drug copay with no deductible to meet.
Finding the plan with the right benefits and price takes some research and numbers-crunching, but it's a worthwhile effort to find the plan that fits best. To learn more about individual health insurance costs, see Mary K's post "Individual Health Insurance Basics Part 2" our read Celtic's Individual Health Insurance Guide Choosing the Right Individual Health Plan.
Posted by Corinne M. on Fri, Jan 22, 2010 @ 01:20 PM
If you're considering individual health insurance coverage, you have to do some comparison shopping to find a plan with the right benefits and price to fit your needs. You'll find there are many plans available to choose from: lower-cost basic benefit plans, more comprehensive benefit-rich plans, HSA-compatible plans and short-term temporary plans. How do you know what's right for you?
This is the first of three blog posts focusing on helping you assess your needs so you can make a sound decision. First, you'll want to answer the question "What health benefits will I use?" so you'll have an idea of how much coverage you need in a plan.
It helps to break the question down into smaller parts:
- Do I need to utilize PPO network doctors and hospitals?
- How often do I or other covered individuals visit a primary doctor? Specialists?
- Do I need coverage for prescription drugs?
- Do I want supplemental accident coverage?
- Do I want other optional benefits?
- Do I need coverage primarily for the "big ticket items" like accidents and illnesses?
Compare your plan alternatives side-by-side to see which plans offer the level of coverage you're looking for. You'll see that some plans offer very basic coverage while others provide a wider range of benefits and more flexibility with plan choices and benefit options. You may like the benefits on one plan more than another's, but you may find its price to be outside of your comfort zone. That's why the next step is to think about how each benefit affects the plans' cost.
In my next post, I'll give some tips to help you find a plan with the right coverage and price. There are some tricks to getting the benefits you need while staying within your budget. Prepare yourself to answer this question:
"How much can I afford to spend?"
In the meantime, visit Celtic's Consumer Learning Center to learn more.