5 Questions You Need to Ask While Buying Health Insurance

Without the right knowledge, choosing a suitable health insurance plan can be overwhelming. According to a recent industry study, around 12% of Americans are not confident about selecting an appropriate health plan. However, with a clear understanding of the policy details, you can choose insurance coverage that suits your budget and family health.

Taking this into account, the following are a few vital questions you need to ask when shopping for health insurance.

1. How Much Will Medical Care Cost?

Before buying health insurance, you should know the upfront cost of premiums, deductibles, and out-of-pocket-limits. According to a Kaiser Family Foundation report, the average annual premiums for single coverage in 2019 were $7 188.

A premium is the total cost of a health insurance policy. Most insurers allow policyholders to pay their premiums in regular installments, with the most common payment cycle being monthly. A deductible, on the other hand, is the amount you pay before the insurance starts providing certain benefits, while the out-of-pocket limit is the maximum amount of money you’d need to pay for a named peril. For instance, if a procedure requires you to pay $40 000, and your -out-of-pocket maximum is $4,000, you’d only need to pay$4,000 out of pocket.

2. What Type of Plan Is It?

Before you buy health insurance, determine whether it is a managed care system or an indemnity health plan. Indemnity health plans allow you to choose your doctors. Besides, you only cover part of the health care cost while the insurance company covers the rest. On the other hand, managed health care involves a Preferred Provider Organization (PPO) or Health Maintenance Organization (HMO). Under an HMO plan, your employer pays a fixed fee for healthcare service. However, you can only use in-network providers. In contrast, the PPO system allows you to use out-of-network providers, but at a fixed cost.

3. What Benefits and Perks are Included in the Policy?

Besides improving your health, additional health insurance benefits can help you save money. With this in mind, you should find out whether or not an insurer offers extra benefits such as eye care and dental services. More importantly, make sure to take maximum advantage of such benefits.

4. Does the Insurance Cover Routine Examination?

Considering how some health conditions require routine checkups, you should determine whether a policy covers the same. Examples of such conditions include, among others, mammograms, immunizations, and pap tests.

5. Does The Plan Have Restriction On Pre-existing Conditions?

Some insurance policies will not cover health expenses if your family has a history of a chronic condition. According to the Centers for Disease Control and Prevention (CDC), 60% of American adults have chronic diseases. Enquire if the pre-existing conditions are excluded from the policy. Some plans may require you to contact your doctor within 24 hours before going to the hospital, failing which the insurance won’t cover the cost.

Thus, before you buy health insurance, answer these health plan questions, and make your decisions accordingly. For more questions related to health insurance, contact the experts at First Insurance Solutions. We will assist you with all your coverage needs.

By First Insurance Solutions

First established in 2003, the experienced insurance consultants at First Insurance Solutions provide unmatched insurance solutions to increase indemnity against personal and business risks. We aim to provide businesses and individuals with quality, reliable insurance policies that meet their needs and budget.