According to the CDC, more than 32 million US adults under the age of 65 do not have health insurance. If you’re looking to finally get insurance coverage or you want to switch to a new plan, it can be hard to decide which one best fits your needs.
Luckily, we’re here to help.
Keep reading to learn about the most important things to consider when choosing a health insurance plan so you have access to the best insurance coverage possible.
Understand the Different Insurance Networks
When deciding between different insurance options, it’s important to understand the different types of networks that are available to you. The most common types of networks are Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs).
HMOs
With an HMO, you can see specific in-network doctors. If you visit an out-of-network physician, then you’ll have to pay out-of-pocket for the costs. In many cases, you’ll need to first visit a primary care physician who will then refer to you a specialist if needed.
While your options are limited to only those in-network, HMOs are popular because they tend to have a lower premium, making them a more cost-effective option.
PPOs
When you select a PPO, there are still in-network doctors for you to choose from, but there are fewer restrictions on seeing out-of-network providers. Your insurance company may also cover some of the costs for an out-of-network visit.
The downside of this flexibility is that there’s often a higher premium and a deductible when you opt for a PPO.
Consider Upcoming Life Events
When certain big life events happen, your health insurance needs may change. Consider the following before deciding between insurance options:
- Are you turning 26 soon, meaning you’ll age out of your parents’ insurance plan?
- Are you planning to move to a new state or start a new job?
- Are you planning to get married or have children in the near future?
- Are you planning to retire soon?
If you answer “yes” to any of the above questions, you may qualify for health insurance enrollment outside of the normal open enrollment period in the fall. As your insurance needs change based on these major life events, make sure you don’t experience a lapse in coverage during the transition periods.
Learn How to Access Coverage
Finally, you’ll need to decide how you plan to access coverage. Here’s a closer look at the options available to you.
Employer Insurance
Most Americans get their health insurance through an employee-sponsored plan. However, if you lose your job, you’ll lose access to your coverage. In that case, you may be able to get a plan through COBRA. If so, you can pay a higher premium to keep your same plan for a specified time period.
Marketplace
You may also be able to purchase coverage through a health insurance marketplace, either federally or via a state marketplace. This gives you more freedom to choose a specific plan that works best for your needs.
Medicare or Medicaid
Medicare is available to people once they turn 65, and there are a few different plans available. Medicaid is available to low-income individuals and families, based on federal and state regulations. You can explore these options to see if you qualify.
Choose Your Health Insurance Plan
Now that you know more about how to choose the right health insurance plan, it’s time to get the coverage you need. As a result, you’ll have peace of mind should the worst-case scenario happen.
Looking for more ways to prioritize your health? Browse through our other articles today.