Here are the 7 things you consider before you choose a healthcare insurance policy:
1. How much will a visit to your doctor be?
2. What will your co-pay or discount is for prescription?
3. What will your annual deductible be for your policy?
4. What will be your maximum out of pocket expense?
5. What is your lifetime maximum health insurance coverage?
6. What is your monthly premium?
7. Is the policy HSA qualified?
How much will a visit to your doctor or to fill a prescription should weigh heavily in deciding on your policy, remember you will be paying for your coverage. If you don’t know if you should have prescription coverage, you absolutely should. If the policy you are looking at does not have that coverage, get it!
Your next big decision is how much is your annual deductible? Then figure out your maximum out of pocket expense is going to be on an annual basis. You basically add your deductible and co-insurance this is your maximum out of pocket expense. Policies that have a high deductible do not usually have a co-insurance cost. I would look for these types of policies.
What is your lifetime maximum coverage? I would not consider a policy if the lifetime coverage is under 2 million dollars. I think you are risking to much by having less than that. Now 2 million sounds like a lot of coverage. Consider this one fact; in my home state one night in the ICU can be over $70,000! 2 million dollar can get eaten up quick at 70 grand a pop.
Most health insurance companies will do EFT drafts from your checking every month, so the amount of your premium is definitely a factor in your decision. Sometimes, it feels like your “between a rock and hard place”, because you cannot really be without the insurance, but the added expense is high monthly. Make sure you can afford your insurance.
Health savings accounts are a must. Why? Simply because you can save over $5,000 a year Tax Free! You can use these funds for future medical expenses or retirement. It can be an investment vehicle.