Top 10 Health Insurance Tips
1. Shop Carefully - Health insurance is expensive, so compare the policies and decide what you must have (ie. Asthma medicine) and what coverage can be reduced.
2. Ask About Pre-Existing Conditions and other Exclusions - One of the main reasons that claims are denied is a pre-existing condition exclusion in the policy contract. Even if health questions are not asked on the application the policy may not cover a condition you already have. Make sure you understand the definition of pre-existing conditions and how long they will not be covered.
3. Know if the policy can be non-renewed - Be sure to read the renewal section of the policy to know if the insurer has the ability to not renew your policy and under what conditions.
4. Check your application for errors - If you do not give correct and complete answers to medical questions your claims may be denied or your policy cancelled. It is always best to tell the truth, the whole truth and nothing but the truth.
5. Review your employer Health insurance options each year - If you and your spouse/partner are both eligible for health benefits check out each companies options to see which may cost less. Sometimes it may make sense to have a family plan with one employer while other times it is more effective to have each spouse on their own employer sponsored plan. Because employers differ considerably in the amount they contribute, check out your options carefully.
6. Beware of COBRA - If you have been laid off and your former employer has 20 or more employees, the company is required by law to offer you the option to pay for an extension of your health insurance benefits for at least 18 months. But beware – Cobra can be very expensive as you must pay the premium your former employer was paying plus an addition 2%.
7. Do you want to keep your Doctor? - If you have a particular physician you like, that might dictate whether an HMO or PPO is right for you. In an HMO you must use the plans network of doctors. In a PPO you can use any doctor but may pay additional for going out of the PPO network.
8. Increase your out of pocket costs - Insurance was designed to protect against catastrophic loss. So the more you agree to pay for things out of pocket in the form of deductibles and co-payments, the less you will pay each month in premiums. One excellent way to reduce your overall health insurance costs is to consider a high deductible plan with a Health Savings Account which allows you to contribute pre-tax money and grows tax-free.
9. Choose a policy to protect your financial well being - Select a policy that fully protects you in the event of a catastrophic illness or injury. Avoid plans with unrealistic limits on hospital, surgery, prescription drug charges and other potentially large expenses. Even if that means accepting a policy with a higher deductible.
10. Find a reliable Agent. - Using an agent can help make finding the right health insurance plan much easier. Understanding your needs will help him/her guide you through the myriad of coverage choices available.