Your guide to the best and most affordable health insurance plans – Forbes Advisor
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Health insurance is probably a priority if you have recently changed employment status, gone through a major life event such as a marriage or the birth of a child, or if you have lost the ability to use your family’s coverage. . But do you have a good understanding of health insurance and how it works?
Here’s everything you need to know about health insurance and how to find the best and most affordable one for you.
What is health insurance?
Health insurance is a plan that covers your medical costs for preventive health checkups, illnesses and injuries, procedures, prescriptions, and more. Often you can enroll in a plan through your employer, but there are also individual health insurance plans that you can select and pay for yourself.
Healthcare can be confusing and expensive, but having health insurance coverage can help you avoid unexpected medical expenses during emergencies or unforeseen accidents. It can also lower the cost of your prescriptions, surgeries, and routine doctor’s visits, all while giving you peace of mind.
When selecting a health insurance plan, it is important to understand all of your available options before making a decision. Here is a list of things to consider when determining the best health insurance plan for you.
What types of plans are available?
The first step in choosing a health insurance plan is to decide how you want to enroll. There are several ways to enroll, including enrollment in an employer-sponsored plan, an individual or family plan, or a federal government plan like Medicare.
Employer-sponsored plan: This coverage is a benefit that employers typically offer their employees. Almost 49% of Americans receive health insurance in the workplace, according to the Kaiser Family Foundation. These plans are also called group health insurance.
If you continue with your employer, you will likely be offered several different health insurance plans to consider.
Individual or family plan: You accept and pay for these plans yourself by visiting your state or federal market, in direct contact with private insurance companies or through a broker. If you are a student or self-employed, this type of plan could be for you. The market is home to the Affordable Care Act (ACA) plans.
Federal government program: Medicare is a national health insurance scheme specifically for people aged 65 and over. Medicare works differently from most other insurance plans and has different enrollment periods than employer-sponsored plans and individual or family plans.
Once you’ve decided on an itinerary, think about which health insurance plan best meets your needs. There are several plans to choose from, so think about what is most important to you, such as having access to care outside of your plan’s network of doctors and hospitals or having the option to choose your specialists without a referral. for example.
Below are the most common types of health insurance plans on the market.
HMOs are generally the cheapest plans due to the number of restrictions they have. If you’re in good health and only see your primary care doctor for annual or necessary visits, an HMO plan may meet your needs.
If you are looking for more freedom and control in choosing your healthcare providers and specialists, an EPO or PPO plan might be more appropriate although it may cost you more money in the long run. âWith larger networks, you have more physicians and hospitals, which lends itself to higher costs,â says Kenneth White, national manager of managed care practice for Willis Towers Watson in Florida.
To think about health insurance holistically, you need to understand a few key words. Before you compare reimbursable expenses, find out about your copayments, deductible, and coinsurance.
Co-payment is a fixed rate that you pay for a covered health service at the time of care. For example, after consulting your attending physician, you are asked to pay your co-payment.
Deductible is the amount you pay for covered services before your insurance plan starts paying its share.
Coinsurance is the percentage of the costs of a covered health service that you must pay after paying your deductible. Let’s say your coinsurance is 25% and the allowable amount (the maximum amount a plan will pay for a covered service) for a particular medical visit is $ 100. If you’ve already reached your deductible, you only need to pay 25% of the visitation fee, or $ 25.
How much does health insurance cost?
The cost of health insurance can vary widely. Some factors that affect the price include deductibles, co-payments, coinsurance, monthly premiums and your maximum expenses, as well as personal choices regarding the plan and coverage options.
What to Consider When Finding Affordable Health Care
It’s easy to go for the lowest monthly price when selecting a health insurance plan, but there are a few things you should consider before doing so. Take a step back and assess your health care and that of your family as a whole so that it does not cost you more in the future. Look at annual costs and premiums, metal categories if you are considering ACA plans, health savings account (HSA) or flexible spending account (FSA) options, and out-of-pocket expenses.
Annual costs and premiums
The first thing you will probably notice when buying insurance is the annual cost, or the sum of your monthly premiums. âThe main cost associated with coverage is the premium – the amount you pay each month for the coverage, which could be subsidized by your employer or the government,â White explains.
In the insurance market, ACA plans are separated into four âmetallicâ categories, which indicate how costs are allocated between you and your health insurance plan.
Bronze: You pay the lower premium each month, but you also have a high deductible, so when looking for care you have higher costs because it will take more to reach your deductible. This metal plan is ideal if you only want coverage for worst-case scenarios. Your health insurance covers 60% of your health costs and you pay the remaining 40%.
Money: This monthly premium is slightly higher than the Bronze plans, but your costs are lower when looking for care. Your health insurance pays 70% of your health care costs while you contribute 30%.
Gold: If you see your doctor regularly or need care, consider a Gold plan, which offers a higher monthly premium but lower point-of-care costs. Your health insurance pays 80% and you pay 20%.
Platinum: This plan offers the highest monthly premium, so if you need care frequently, you can be assured that most of your care will be covered with minimal care costs when using services.
HSA vs. FSA
With a Health Savings Account (HSA), you can lower your overall health care costs by saving pre-tax money in a dedicated health savings account. With an accompanying debit card, you can then use those funds to pay deductibles, copayments, coinsurance, and eligible medical expenses. An HSA cannot be used to pay the monthly premiums associated with your health insurance plan.
You can keep an HSA regardless of your employment status, and after age 65 you can treat it as a retirement account, using the funds as you wish without penalty.
HSAs only come with high deductible health plans. The federal government decides annually what is considered a high deductible. You can find the minimum deductible required for an HSA, as well as the maximum profit from the savings account, here. If an HSA is important to you, look for a “Qualifying HSA” tag when shopping. Medicare and Tricare plans are not eligible for HSA.
Meanwhile, a Flexible Spending Account (FSA) is a similar benefit provided alongside health insurance plans offered by your employer. You fund your FSA with pre-tax dollars from your paycheck and use a paired debit card when you want to use the funds for qualifying medical expenses. One downside to FSAs is that the amount you save is unlikely to carry over from year to year. In other words, if you don’t use it by a certain date, you lose it.
You are unlikely to qualify for both of these benefits simultaneously.
It is generally more affordable to see networked providers than off-grid providers. If you go out of the network to see a preferred provider or visit a preferred facility, be aware that they don’t have a contract with your health insurance provider and will likely cost more, sometimes even full price.
To keep costs low, choose a plan that includes your preferred care providers in its network or choose a plan that is more forgiving and flexible when it comes to off-network coverage.
This amount is the maximum you could have to pay for health services in a single year. Your deductible, co-payment, and coinsurance for all network services all count towards this maximum. Monthly premiums, payments for uncovered services, and out-of-network visitation fees do not contribute to your maximum amount.
Once you’ve reached your maximum, your health insurance plan pays 100% of your costs for the rest of the year. So, if you are trying to find the most affordable health care plan, pay close attention to the maximum amount and how much it could possibly bring you.
Where to ask for help
Choosing a health insurance plan can seem overwhelming, but you don’t have to do it alone. There are several ways to get expert help.
- Contact the Market call center whether you choose your own individual or family plan to get all of your questions answered and help with enrollment.
- If you choose a plan through your employer, ask your human resources department if they can help you.
- If HR can’t provide you with the help you need, ask them to refer you to an insurance agent or broker who can walk you through the process.
- You can also find an agent or broker yourself by searching for local organizations in your state or zip code.