Expenses to Look for in a Health Insurance Policy

Finding a health insurance policy isn’t something to take lightly. Healthcare in the U.S. can be very expensive, and health insurance is designed to help you get the care you need. Before purchasing a health insurance policy, consider these aspects:

Premium Costs 

Of course, health insurance is designed to save you money, so you don’t want to end up with a policy too expensive for your wallet. The average U.S. citizen pays around $403 a month for health insurance. Compare rates in your area. Keep in mind that low premiums aren’t always the best option, however. A lot of times, low premiums mean a high deductible. If you have a high deductible on your health insurance policy, this means you will pay more out of pocket for healthcare before receiving compensation. 

Extra Coverages Available 

A basic health insurance policy won’t cover everything. If you plan on staying with a health insurer for a while (which is recommended), you will want to know that they can offer additional coverages you may want in the future. Health insurance generally doesn’t include coverage for eyeglasses or dental work, for example. 

Some screenings and procedures may also be excluded, so take a good look at the offered policy before signing. 

Additional Out of Pocket Expenses 

Along with the deductible, you should also ask what your co-payment and coinsurance would be under a health insurance policy. A co-payment, for example, is completely separate from your deductible. This is the amount you will have to pay for doctor visits, health specialist visits, trips to the Emergency Room, urgent care, and prescription drug costs. If you choose a higher monthly premium, your copay will generally go down.  

Meanwhile coinsurance is tied to your deductible and paid alongside the copay. This is the amount you will have to pay after the insurance provider gives compensation. Each payment of your coinsurance goes toward your deductible. If you have met your deductible by the time you have to file a health insurance claim for a medical expense, you will only owe a percentage of the bill. For example, say you have a hospital bill of $5,000 and the deductible is $1,000 You have already paid the $1,000 deductible. Your policy describes your coinsurance as $20. In this case, you would pay 20% of $5,000 which is $1,000 and the insurance provider would cover the remaining $4,000.