Comparing the Best & Cheapest Health Insurance Plans

Are you part of the 28 million Americans without health insurance? If you want to obtain coverage, you should consider how to find the best option for you and your budget. It can be easy to look at premiums and choose the plan with the lowest cost. However, more factors can affect how much you'll have to spend over the year. Read on to learn what factors to consider as you compare health insurance options.

Look at Plan Types

One of the first things to consider when choosing the best option for health insurance is the plan type. A preferred provider organization (PPO) usually offers more options regarding where you can receive care. It's a common option if you qualify for insurance through an employer. However, these plans can be quite expensive when you don't have an employer to cover part of the cost. If you go through the health insurance marketplace, you may go with an exclusive provider organization (EPO). Another option is a health maintenance organization (HMO), which can be more affordable than other plan types.

Don't Forget Medicare or Medicaid

Before you choose the right type of insurance plan, consider if you qualify for Medicare or Medicaid. Medicare is open to adults over 65 or anyone with a disability as well as patients experiencing kidney failure. On the other hand, Medicaid is available to all adults who make 138% of the federal poverty line or less. You don't need to have a disability or any health problems, but you could lose that coverage if your income increases. Both of these options can be excellent alternatives to what you find through the marketplace or an employer. As long as you meet the qualifications, consider them in your search for the cheapest health insurance option.

Consider Network Coverage

A vital part of choosing the best option for health insurance is to consider the network. Insurance networks refer to the groups of doctors and facilities that have contracts with your insurance company. In most cases, you will pay much less to see a doctor or obtain a prescription that is in your plan's network. You can still obtain care outside of your network, but the cost will fall on you. The amount you pay for out-of-network services may also not apply to your insurance deductible. Most insurance companies let you view the different networks to help you select the right health insurance plan for you.

The Different Metals

You should also consider the different metal levels and how they correspond to health insurance. A bronze plan will usually have the lowest premium, but it will come with a high deductible. On the other hand, a platinum plan will have the highest premium, but it will cover more services. You can find silver and gold plans that are in the middle, so you can balance the cost of your care. If you have a lot of health issues, you may consider a gold or platinum plan. That can help you keep expenses the same each month, and you won't have to pay out of pocket as much.

Monthly Premiums

As you look for the best option for covering yourself and your family, think about your monthly budget. You can find some plans with monthly premiums that are half the cost of other plans. The premium is what you pay every month to maintain active coverage. It doesn't go toward paying other medical bills, such as prescriptions or appointments. A low monthly premium can be deceiving because you can save money. But when you need care, you may need to spend more on an appointment or medication.

Deductibles and Co-Pays

Deductibles and co-pays are two of the most common health care expenses aside from your premium. A deductible refers to the amount of money you have to pay before your insurance plan covers your care. Meanwhile, a co-pay is the portion of in-network services that you have to pay for. Your insurance company will cover the rest of your costs for those services. A similar number to know is your out-of-pocket maximum. It may or may not be the same as your deductible, but it refers to the maximum amount you will have to spend for covered care in a year, so a lower maximum may help you save money.

High-Deductible Health Plans

You may find the best option for health insurance is a high-deductible health plan (HDHP). An HDHP may also be an EPO, HMO, or PPO, so it only refers to the amount that your deductible will be. These plans need to have deductibles that are higher than a certain amount. They also won't cover any services before you meet the deductible, so they can help healthy people save money. As you might expect, they usually come with lower premiums. You'll also qualify to open and contribute to a health savings account (HSA) that you can use to save and pay for qualifying medical expenses.

Subsidy Qualifications

If you make 400% of the federal poverty line or less, your best option may be to buy health insurance from the marketplace. The Affordable Care Act implemented subsidies for low- and middle-income Americans. Consider your income and family size, and use the marketplace website to estimate how much you could save. Then, you'll be able to buy medical insurance, and you'll receive a tax credit to cover the cost of the premium.

Total Costs

Whether you qualify for a subsidy or not, you should consider the total cost of your care. To help choose the best insurance plan, add up the total cost of the premium for the year. If you take medications, add up 12 months' worth of those as well as the cost of doctors' appointments. Then, you can compare that to a plan's deductible, and you can select the plan with the lowest total cost, even if the premium is higher than other options.

Choose the Best Option for Your Health Insurance Needs

Knowing how to compare health insurance options requires a lot of thought, and it may not be as easy as it seems. When you're ready to enroll, be sure to consider all possible charges, from premiums to deductibles. Then, you'll get a good idea of the best option for you and your family. You can get the coverage you need without paying more than absolutely necessary. Do you qualify for Medicare coverage? Contact us to learn how we can help you obtain a health plan.