Choosing The Right Health Insurance

Personal Finance

Choosing The Right Health Insurance Provider

14th July 2009

As you may have noticed the last post I wrote was exactly seven days ago. Highly unusual for those of you that follow moneybusiness quite regularly. I was hit with health issues. Yes folks, my wife who is six months pregnant was the first to do a three day stint in hospital, followed by my eight months pregnant assistant, then I had to get surgery done on my big toe and so the health woes have plagued my household for the past week. Interestingly the many visits to the physicians' rooms and hospitals became an inspiration for today's post. I realised just how many Americans are not adequately covered or insured by their health insurance. So let's have a look at choosing the right health insurance and why it is of paramount importance for you.

Given the current economic recession, some firms that used to provide employees with health care insurance have either cut their subsidy or completely wiped out that benefit. Then you get those of us who in the face of the economic crisis found ourselves on the unemployment list and out of jobs. So with all this mess going on and trying to cut on expenses, where does health insurance fit in? The point folks is as sure as the sun sets and rises, we all get ill health at one point or another. It is not a question of if, it is a matter of when. Given that fact, health insurance should be on your investment list as part of your personal finance budget. However, there are so many health insurance providers out there as well as health insurance plans. So how do you decide which one is best for you? I will tell you how I went about choosing my current health insurance provider.

1. Past Medical Health History

I grew up a sickly boy and as a grown man I am still more easily prone to ill health than my wife Helen who is as fit as a fiddle. However, when Helen falls ill, it's always the type of illness that lands her in hospital. So with this in mind, I got onto google and did my research on health insurance providers in my state and the types of health insurance plans they offer. I was looking for total hospital coverage, that is hospital stay, medicines dispensed during the stay, coverage for any operations or medical procedures and ofcourse services covered when you visit your physician. This was important for me because my medical history tells me the fact that I need adequate coverage for these types of services should I need them. Plus with a child on the way, adequate coverage means the difference between a healthy baby or a very sick baby. So I would advise you to analyse your medical history as well when choosing a health insurance provider. Remember you are making a long term investment so spend your money wisely.

2. Decide On and Write Your Priorities For Health Care

I have a friend who is addicted to going to the gym. Now for him a priority could be free gym subscription or money back after so many visits to the gym. Some health insurance providers also offer free health magazine subscriptions. If you lose your job will you be covered? What types of benefits and coverage are offered for chronic conditions? Does the plan have a disability cover? So when choosing a health care plan, your current and future priorities for your health and lifestyle also play a key role in your final decision. So decided what is important for you in terms of your health and find a plan and a provider that suits those needs.

3. Insurance Premium Costs

Some people may advise you to have this point first on your list however, I prefer to put it third on my list because I look at things this way. If I am healthy, I am alive and able to work or find means of making an income for me and my family. If I fall ill and die, my family is left with the burden of the bills so in the end it is not always about the money. I do however agree that you need to shop around for a plan that is best suited to your needs and then look at the cost of that health plan. If you pay $100 extra but are covered for generic medicines then is not worth to invest that $100 dollars into the premium rather than spend $200 extra every time you go to the pharmacy for a generic drug? Also find out at what intervals insurance premiums are increased, is it yearly? Or when you hit a certain age group? Be sure to look at what the percentage of increase is and how much extra that will cost you.

4. Individual Or Group Health Care Plans

For most people you would be shopping for an individual insurance for you and your immediate family. However, you do get individuals with small businesses like myself for whom it would be beneficial to look at a group plan. Remember I mentioned my eight months pregnant assistant? It would be beneficial to compare and see how insuring your family and employees would way against you just paying extra in salaries and let your employees get their own individual health insurance. The point is weigh the options that are available to you.

5. Health Savings Account

Although this is not really an option I ended up taking in my final decision, it could come in handy for those of you who probably see a doctor once or twice a year for a check-up. The good thing about a health savings account is that the money you save on premiums is deposited and grows without being taxed as it grows so it is tax-deferred. The idea is when you turn 65 then you can withdraw all that money you didn't spend.

These are the steps I took in choosing my current health insurance provider. The premiums were lower than most and reasonable and the coverage for hospitals, medications, and illnesses were adequate for my needs. Also the cover was immediate. You sign up and you can start charging whereas one provider told me that in the first year of cover, pregnancy was usually not covered. So folks, be vigilant when deciding on a health care provider for you and your loved ones. You'll be glad you went through the trouble of making careful, informed decisions in the long run.

"Eternal vigilance is the price of liberty. " - John Philpot Curran

Comments (9):

Viper Says: Thanks for this one. My mom fell ill last year and when the bills came I had to get an extra shift at work just to cover them | 07.14.2009 |

Queen Says: Food for thought since I just jumped on the bandwagon of the group scheme my employer offered without really ever looking at was on offer | 07.14.2009 |

Jim Says: Good article for those shopping for health insurance, important to note is the premiums vary widely from state to state | 07.14.2009 |

Eric Says: That's true Jim however there are firms that offer nationwide health insurance, it would be best to go through a health insurance broker for that | 07.14.2009 |

Donna Says: @Eric, then you have to go through the issue of searching for a good and honest health insurance broker that's double effort | 07.14.2009 |

Pete Says: Your state website should give you a list of not only health insurance providers but health insurance brokers and agents also | 07.14.2009 |

Donna Says: Thanks Pete, didn't know that one | 07.14.2009 |

Basil Says: Kev this is really useful information thanks. Hope your toe is alright | 07.14.2009 |

Brenda Says: I gave a chuckle when I read the first paragraph. Yes Kev it seems when it rains it pours but glad to have you posting again | 07.14.2009 |

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