Tips for Choosing a Health Policy
With the rising cost of medical treatments these days, health insurance is necessary for just about everyone. But policies can vary dramatically in coverage, cost and other features, so it’s important to understand and review your options well before deciding which one to buy. You also have lots of insurance companies to choose from, which may make choosing a bit more difficult. Of course, as long as you put in some time and effort doing your homework, it can become easier.
Type of Policy
There are various types of policies providing health coverage, and these are the most common:
Health Maintenance Organizations (HMOs)
An HMO policy only allows you to use healthcare providers within the network. And you can only see a specialist if you have a referral from your primary care physician.
Preferred Provider Organizations (PPOs)
Like HMOs, PPOs also work with networks, but you will not be restricted to their health care providers, and you can also see a specialist without having to secure a referral.
Exclusive Provider Organizations (EPOs)
EPOs are like half HMO, half PPO. You have to use in-network providers, but there’s no need to get a referral when you need a specialist.
Point of Service (POS)
PPO plans, which are probably the least common of all the other types, are the opposite of EPO plans. A referral is required for an appointment with a specialist, but you can see any doctor outside the network.
High Deductible versus Low Deductible Policies
In general, the higher your deductible, the lower your monthly premiums will be. Your deductible is the amount of healthcare expenses that you have to cover out-of-pocket before coverage takes over. If your average health expenses each year are relatively low, a high-deductible plan will be an advantage. Otherwise, a low-deductible policy should be smarter to get.
Comparing Your Coverage
Network and policy regulaions are the two most crucial factors that ultimately determine whether a plan is right for you or not. Even with a plan that provides out-of-network options, you’ll probably want to use in-network providers because it will let you save money. And the rules that your coverage is bound to, as well as your copay rate, are also crucial when it comes to a policy being suitable or advantageous for you or not.
How to Choose the Best
Are you having a hard time choosing between to policies that both seem to be a steal? You’ll want to know each plan’s annual cost by multiplying their monthly premium by 12. Next, add to that your maximum out-of-pocket.
The result is the amount you’ll likely spend on health care if you had at least one significant medical expense through the course of the year, . Pick the plan that yields the lower number.