Things to Know Before Picking a Health Coverage Plan

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While choosing your fate is not entirely in your hands, buying yourself good health insurance that gets you covered for most of the medical services is a little part of planning out your life.

Who knows what happens in the coming times, and with the recent Covid-19 outbreak, no one is sure what the future holds. However, having a secure medical plan is a significant source of mental peace. 

Choosing a health coverage plan can be overwhelming. A lot of people are anxious about going through this. To make this daunting task less haunting and more thoroughly-thought over, go back to the basics, and keep the process simple. 

Experts advise that writing everything down and making a checklist is the best thing to do. It does not let you leave anything out as all your points are there in black and white. 

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Choosing a Health Coverage Plan 

Selecting and finalizing a health coverage plan is not as easy as it might seem. The stakes are – as it is your health and medical services you are talking about – and of course, the costs are not cheap. 

Buying a health coverage plan can always have some loopholes, as you might not be able to look through everything. On the other hand, some very affordable health coverage plans will make your life easier.    

Let us simplify the process for you and present to you the top things you need to know before you pick up a health coverage plan.  

  1. What is the Premium you’d have to pay?

Premium is most probably the first thing that comes to mind when you start thinking about health insurance. It is the amount you have to pay monthly to keep the health coverage plan secure and comes with any health coverage plan, no matter who you choose to go with. 

Since it is a monthly expense, it needs to be your top consideration when reviewing a plan. Assuming that the lowest premium package should be your first choice is not always the right decision. The health coverage plan asking for the cheapest premium might imply more out-of-the-pocket expenses for you.  

It might also mean that the medical services, doctors, or hospitals offered in such plans have a wide variety. 

For instance, such a plan might have a policy for co-paid visits to the doctor. So, even if the visiting fee is $20- this is the amount you will be paying at every single doctor visit besides the premium. Therefore, while keeping your budget in mind when choosing health insurance is the safest thing to do, it is not the only thing to base your decision on. 

  1. Policy regarding Co-Pays 

Numerous health insurance providers offer a co-pay policy. It is an agreement between you and your insurance provider wherein you agree to pay for some percentage of the expenses before the insurers start paying. Now, this does not make sense for some emergency and preventive care services, which is why such expenses are not included in the co-pay policy

It is also known as co-insurance. Most of the health coverage plans offer an 80/20 split – forcing you to pay the 20%, after which the insurance kicks in. So, besides premium, it is essential to check out the details on the co-pay policy.

Some people, considering their recent health history, might want to opt for low premiums with higher out of the pocket expenses. On the other hand, for some people, a health coverage plan with higher premiums is just not suitable.  

  1. Health Savings Account 

Health Savings Account (HSA) is one of the biggest advantages of buying a health care policy with high deductibles. HSA is a type of savings account in which you can set money aside in case of a medical emergency. 

However, this facility of HSA is only applicable to health coverage plans with more than $1,200 deductibles for an individual and $2,400 for a family. This savings account helps you save money without the hassle of tax, so it is one of the advantages of buying a policy with high deductibles. 

  1. Know Whether your Current Doctor is Covered or Not 

Before buying or finalizing any health coverage plan, always make sure if the new policy covers your current doctor or not. Most of the health coverage plans include a wide network of doctors, such as the PPO plans. PPO is the preferred provider organization comprising of a wide network of medical service providers.

PPOs have agreements with numerous health insurance providers for providing health care to the clients on reduced rates. In comparison to HMO policies, which are quite restrictive, PPOs provide a better choice of doctors. 

  1. Ensure your Prescribed Drug is Covered 

It sounds like the most obvious question that should pop in your mind when you are hunting for a new health coverage plan. Nevertheless, it is essential to look deeper than just knowing that your prescribed drug is covered in the plan. 

Often, the health coverage plans have various brand names and their generic formulae covered by a tiered policy. It implies that the generic formula of your prescribed drug might be covered but not the exact brand of drug you take. So, take a good look at all the points before you finalize any plan.

Final Words 

All in all, buying a health care plan should not be as daunting a task if you keep these crucial considerations in mind. Always make sure to look through all the points in the policy, no matter how long they are. Comb through each of them and ensure that your doctor and prescription drugs are covered.  

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