Health insurance is a financial protection cover for the whole or a part of any medical emergency expenses in the future. Hospitalizations or emergency treatments are not planned and when it happens, one shouldn’t be worrying about the medical expenses. Insurance comes with a relief – allowing you to spend the time taking care or just being there for your loved ones.
With all the terms and conditions, and skepticism around having insurance, people are less likely to have complete information. But we’ve got you covered. Here’s FintecBuzz giving you tips on how to pick the perfect health insurance plan for you –
Perfect age for Health Insurance
Having health insurance is a must and the sooner the better. Adulthood comes with responsibilities. As one starts earning, planning expenditures, savings, and investments become a routine. Having insurance safeguards your hard-earned money instead of spending all your savings, emergency funds all on one health emergency.
As parents start aging, they are vulnerable to health-related concerns. It’s wiser to plan your expenses accordingly. By having a separate insurance for parents, you can give them better care and facility even if they have some pre-existing illness. Insurance plans for 40+ individuals have longer waiting periods. So, make sure you check and compare the nitty-gritty of a plan.
It is not advised to include your parents’ insurance in your family insurance plan. The reason being the probability of hospitalization for your parents is way more than you. Also, that will increase your unnecessary coverage and premium costs.
Don’t miss out on Tech
Is it even possible to think of standing in long lines for multiple signatures to avail insurance? Technology has been a game-changer with the inclusion of AI and ML. Insurtech is a rising market in itself. Many startups seek efficiency in easing out the whole insurance process – right from the initial procedures to claiming it instantly.
Insurtech solutions are helping insurers/brokers to go through a huge digital transformation. It also aims for phenomenal user experiences while empowering the system’s creation, distribution, and administration.
Tips to choosing a Health insurance plan
- Know the platforms/marketplace
Many corporate companies offer employees insurance as one of the benefits. If that is the case with you, that is your platform.
You can choose your state’s public/federal marketplace even if your company doesn’t offer insurance. You can put your ZIP/PIN code when you are enrolling. You can also look into private exchange insurers if the federal options don’t work for you.
- Out-of-pocket expenses
Any plan should mention how many expenses you would have to pay out of your pocket. The deductible, copayments, and coinsurance are the components of your cost share. The amount of money you can spend out of pocket in a year is limited, and your plan’s information will tell you how much you can spend. Lower premium prices mean there will be an increase in out-of-pocket expenses.
- Weigh up the type you need
While searching for the type of insurance you need, you will be reading a few terms.
- High deductible health plans (HDHPs) – HDHPs have been quite popular among employers as they contain health care costs. If you choose this plan, bear in mind to have money saved away for the deductible in case of an emergency. It might be an appropriate plan for someone who is healthy and won’t be needing health services in a year.
- Health maintenance organizations (HMOs) – HMOs dominate the individual insurance markets. A setback to these plans is that they don’t allow you to go outside of your network. So, you must get your providers on board with your network first. If you are someone who doesn’t want to spend more on premiums, this can be your fit.
- Exclusive provider organization plans (EPO)- If you are someone suffering from a particular disease like diabetes etc., you will only need a limited set of specialists in your plans. The plan is perfect for those who want flexibility like a PPO plan and have a limited network of healthcare providers.
- Point of service plans (POS) – It’s a blend of HMOs and PPOs. You have your primary care provider with the flexibility of going out of your network. The regulations are similar to one that of the HMOs plan. If you are someone who can keep receipts and get refunds after treatment is done, this can be the plan for you.
- Preferred provider organizations (PPOs) – Such plans lead the way in the employer-sponsored health insurance market. Someone who uses health care regularly and sees a specialist, or who desires to be able to see a specialist without a referral can be the perfect fit for this plan.
Understand the categories of plans. Gold, silver, platinum, and bronze are a few categories. The quality of service is the same for all categories. The motive is to show you how the plan shares your costs.
- Check the health network in your area
Each plan ties up with multiple hospitals and healthcare services. When choosing a policy, it is fundamental to compare the network of doctors under its wing. Eliminate any plan having a limited number of availability for your local doctors.
There are possibilities of service providers not agreeing upon the pricing when you go out of the network. In such cases, a chunk of the expenses will be paid from your pockets. So, understand these terms clearly before taking insurance.
- Say YES to more benefits
Compare additional benefits insurance might offer. What if you get sick on travel? What if you are taking fertility treatments? What if you face some mental health issue? All these situations count as benefits in a superior coverage plan.
Your health insurance plan can have yearly free consultation sessions, specialist treatments, pre-hospitalization, and post-hospitalization charges. Choose what fits you the best in terms of your plans.
Tip – Acknowledge to discontinue the old plan before starting a new one.
Finally
It is essential to have health insurance for you and your family. It’s amongst those first steps you take towards financial independence. While comparing your plans, you must read all the terms and conditions. Be mindful of the inclusion and exclusions of your policy. A cashless instant process is what will help us in the times we need it the most.
It’s no longer a choice to have health insurance, it’s the need of the hour. Why not make a wiser decision by being informed and picking the plan that suits you the best?
