Factors to Consider When Choosing Health Insurance
Health insurance is important as it helps protect your savings and your family members from the high cost of health care services. Similar to life insurance, health insurance can greatly benefit your family by lowering the cost of hospitalization and other medical services due to chronic medical conditions and the like.
Without an adequate health insurance plan in Michigan, you will be held responsible for paying for all your health care bills out-of-pocket. However, there are many factors to take into consideration when choosing a health insurance plan. To make it easier for you to make the right choice, we at American Insurance Advisors will share the essential considerations for choosing a health insurance plan:
- Coverage of prescription medications.
If you or a family member is currently on any prescription medication, it’s best to find a health insurance plan that can cover its cost. You can check an insurance provider’s coverage for prescription medication by asking for their formularies or a list of covered drugs. Insurance companies typically have a list of drugs that they cover categorized into different tiers for easy reference. Doing so can save you a lot of money in the long run.
- Type of health insurance plan and provider network.
There are several types of health insurance plans available. For instance, Preferred Provider Organization (PPO) plans offer a moderate amount of freedom when choosing a health care provider and require a higher out-of-pocket cost when you see a physician that isn’t part of their network.
Aside from researching different health insurance plans, also take into consideration their provider network. If you are satisfied with the service provided by your doctors, you may want to check if they are within the insurer’s network. Insurance providers like Medicare are beneficial as they offer a wider network of health care professionals to choose from.
Premiums refer to the amount you need to pay per month for coverage, regardless if you use medical and pharmacy services or not. Premiums are usually paid for each month and missing one or more payments can put you at risk of losing your coverage. Other costs for coverage include deductibles and cost-sharing.
Deductibles refer to the amount you are required to pay out-of-pocket before your coverage kicks in. This includes the costs of specialist visits, certain prescriptions, and procedure fees. Selecting a plan with high deductibles means you will most likely have a lower monthly premium and vice versa.
- Solvency ratio
Solvency ratio is used to measure the insurance provider’s ability to meet their debt and other obligations by using their incoming cash flow as a basis to meet their liabilities. Choosing a provider with a high solvency ratio indicates their ability to pay for claims.
Do you have any questions about health insurance coverage? As an insurance advisor in Troy, Michigan, I can assist you in finding the right plan that meets your needs. Get in touch with me to learn more.