Health insurance is the best way to keep care costs down which are usually quite expensive, especially if you attempt to pay out-of-pocket. And unless you are sleeping on endless piles of cash, it's unlikely that you will be able to pay out-of-pocket regularly. In essence, insurance is paid for by otherwise healthy individuals, whose premiums pay for individuals who become sick or injured. Of course you never know when you may become sick and injured, so even if you are young and healthy at the moment, insurance is something everyone should have. If you are looking for the right health insurance plan for you or your family, you might be a bit overwhelmed at all the choices available. With that said, here's how to choose the best health insurance plan.
There are some things health insurance plans must cover that you'll never have to worry about when selecting a plan: hospitalization, outpatient care, emergency services, lab tests, as well as mental health, maternity and pediatric care. Insurance must also cover costs of prescription drugs, rehabilitation, and preventative services like vaccinations. Previously not all of these services were covered in every plan before 2014 when healthcare reform took place.
To first begin finding the best plan, you can find rankings of health insurance plans nationwide. U.S. News & World health Insurance guide can help you find the best insurance plans by state. With some simple information like your city location, birth date and whether or not you are a smoker, you can find the right health plan for you or your family. Other websites, like Insure.com also have a list of the top insurance companies. But the most reputable rankings you will find are from the NCQA. The National Committee for Quality Assurance also has ranking system for health insurance plans. You can find the perfect plan by state and category including private HMO or private PPO.
Right now you might be wondering: what is the difference between an HMO and a PPO? An HMO and PPO gives you access to a network doctors, hospitals and other health care providers within the confines of your insurance. However, with a PPO you may also see doctors outside of the network, though you may have to pay more. Also with a PPO you will be able to see any doctor without authorization of your primary care provider, including specialists. So if you require the care of specialists, it may be the fastest way to get treated. Nevertheless, an HMO usually provides lower deductibles and premiums, so it may be the best option for you in regard to cost.
Regardless of which insurance you buy, you will have to pay premiums and out-of-pocket costs that include deductibles and copayments. Generally the higher the premiums you pay, the lower the out-of pocket costs will be. A lower tier plan will cover around 60 percent of medical costs, while a higher tier plan will cover as much as 90 percent of costs. If you have a pre-existing medical condition that will require regular doctor visits, it may be worth it to purchase a plan with a high premium. If you do not require frequent medical attention, the best option might be a lower tier plan, but you'll have to be prepared to pay a lot more if any emergencies come up. Some companies have out-of-pocket limits, and if you should meet them, insurance will have to pay the rest of your costs in-full.