Tips on Comparing Individual Health Insurance

Not everyone is lucky enough to receive health insurance benefits from their employer. If you are self-employed, unemployed, or you have a part-time job and do not qualify for benefits, it is time to start considering your options when it comes to health insurance. Individuals who buy health insurance that is not employer-sponsored will purchase policies that are classified as individual health insurance. With so many different plans offered by so many different health insurers, selecting the right plan can be an overwhelming and daunting task. Failing to select the right insurance plan for your family can be costly. Learn how to perform a detailed comparison when you are comparing health insurance plans and select the plan that will provide your family members with the right type of coverage at a price you can afford.

Comparing the Different Types of Health Insurance

Understanding what types of health insurance are available to you is the first step you need to take to compare prices and coverage options. You will need to review the pros and cons of each insurance plan and how premiums can differ based on the plan that you choose before you start requesting quotes from any insurer in the industry. When you stay informed, you can buy your policy with confidence that you have selected the right plans, co-payments, and co-insurance. Here are descriptions of the most popular individual plans available:

Basic Health Insurance Plans

A basic plan will include coverage for common medical treatments. Some of the treatments covered include:

Typically, a basic plan will cover the entire cost of treatment up to a specific limit. After the limit is reached, the insured will pay for their medical expenses out-of-pocket.

Major Medical Insurance Plans

A major medical plan is more comprehensive and will provide coverage for inpatient and outpatient treatments. In addition to emergency medical treatments and hospitalization coverage, this type of plan will pay for some of the following:

While major medical insurance plans offer more coverage, they typically only cover a portion of your medical costs. You will pay a deductible, or co-payment, for doctor visits and emergency room visits. You will also have out-of-pocket expenses, which means that you must reach a minimum amount before the insurance will start to pay. Major medical insurance plans are also commonly referred to as Managed Care Plans. Choosing these plans can save you money because the insurer will limit you to receiving treatment from a selected network of providers.

Questions You Consider Asking Before You Select a Plan

Now that you know the difference between basic plans and major medical plans, you need to know all of the right questions to ask when you are comparing products in each category. Failing to ask questions and focusing on just price can lead to denied claims and expensive out-of-pocket costs. Here are some questions that you should be sure to ask your agent:

Everyone wants a health insurance plan that will give them the most benefits with the least out-of-pocket cost. You will need to sit down and discuss what you need and what you want from your policy. Only after you do this can you take time to compare the features of each plan to commit to the plan for your family.