Which Plan Is Right for You?

The secret to finding the best health insurance company is to select an insurer that can offer a plan that is right for you. To choose the right plan, evaluate its benefits, costs, and restrictions.

Benefits

The first criterion you must examine when trying to find the best health insurance company is the level of benefits. Every insurance policy will cover your expenses for doctor and hospital bills to a certain extent (coverage limits will vary by plan). Almost everything else, such as mental health services, preventive care, prescription drugs, preventive care, glasses, etc., may or may not be covered, depending on your plan. To find the best health insurance company for you, you should first make a list of the healthcare services you and your family regularly use. For each plan you are considering, make a note of the amount of coverage for those services (e.g., 80%, 100%, or not covered). After you've got an idea of how well a plan meets your healthcare needs, you are ready to evaluate costs.

Costs

Of course, the policy cost will be another important factor in determining the best health insurance company for you. If you don't use medical services frequently, your primary cost for indemnity coverage will be your premiums. If, on the other hand, you do use a lot of services, it can be more difficult to estimate your actual cost because you must include co-payments, deductibles, and any uncovered services or excess charges. By contrast, cost is fairly easy to gauge with an HMO (health maintenance organization) plan. A true HMO, or a manage care plan with no out-of-network option, will cover almost everything once you've paid your premium. You will be responsible only for small co-payments. Evaluating the cost of a managed care plan with an out-of-network option is more complex because your ultimate cost will depend on if you choose to exercise that option or not.

Restrictions

The final criterion you must consider when deciding on the best health insurance company for you is the level of restrictions in your plan. In general, a managed care plan will require pre-authorization for services and limit your choice of healthcare providers. A managed care insurer might not be the best health insurance company for you if you are attached to a certain out-of-network provider or have a difficult health problem. Indemnity coverage also comes with restrictions in the form of co-payments, deductibles, and uncovered services, which can form financial roadblocks to your medical care.