Pointers for Picking the Right Health Policy
With the rising cost of medical treatments these days, health insurance is necessary for just about everyone. However, policies can differ radically in terms of cost, coverage and features, it’s crucial that you go through your options carefully before making a choice. There are various insurance companies and providers too, and all of these make choosing just a bit more challenging. Of course, as long as you put in some time and effort doing your homework, it can become easier.
Type of Policy
Health insurance policies come in several basic types, and the following are the most well-known:
Health Maintenance Organizations (HMOs)
If you have an HMO policy, you may only use healthcare providers in the policy’s network. And you can only see a specialist if you have a referral from your primary care physician.
Preferred Provider Organizations (PPOs)
PPO health policies also have networks, but you are not limited to in-network health care providers, and you also don’t need a referral to see a specialist.
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 policies, the least common compared to the rest, are essentially the opposite of EPO plans. You are allowed to see out-of-network providers, but you need to secure a referral when seeing a specialist.
High Deductible or Low Deductible?
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 yearly medical expenses are low to none, a high-deductible plan can be a bargain. Otherwise, a low-deductible policy should be smarter to get.
There are two things that will significantly affect how good a plan will be for you: its network and its coverage policies. Even if you choose a plan that allows you to use out-of-network providers, you’ll still be better off going in-network because that will reduce your costs. 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.
Choosing the Best
Can’t decide between two policies that both seem to be the best deal for you? If you multiply the monthly premium of each plan by twelve, you will know how much it costs yearly. Now add the plan’s out-of-pocket maximum.
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.