Choosing the right health insurance plan each year is an anxiety filled, complicated and overwhelming process.
You get a couple of weeks or, if you’re lucky, a few months to go over multiple options either provided through your employer or on the federal marketplace. That means sorting through terms like deductible, co-insurance and HSA that even experts have a hard time comprehending.
So you might just go with what you had last year, even if it might mean you end up spending more money than necessary or leave yourself open to a huge financial risk in the event of an unforeseen emergency.
That’s why we decide to share a few tips that will help you to choose the best option for you and your family.
Prepare
The first, and most basic step, is to know when your open enrollment period begins.
Many private employer-based health insurance plans open enrollment around October.
For those who get their health insurance from the federal marketplace, the open enrollment period begins Nov. 1 and runs through January 15.
It’s also important to recognize that choosing a health insurance plan will take effort. It might help to think about making health insurance selections the same way as you think about doing your taxes every year.
Reflect back
Before knowing what coverage will be best moving forward, it’s good to know how you’re already using the coverage you have.
Do you go to the doctor often?
Is there a specialist you need to see? How many prescriptions do you need filled?
Looking at your previous usage will give you a better understanding of how much you actually spend, which could influence whether you choose a plan with a higher deductible and lower monthly premium or vice-versa.
Plan ahead
Next, ask yourself if there’s any medical procedures you can plan.
Do you have a chronic condition? Are you planning on having a baby? Or knee surgery?
If so, you might consider changing to a plan with a lower deductible or coinsurance, even if it means paying a higher monthly premium.
Some plans only allow you to see a doctor once every three months and if you have three or four doctors you see regularly that’s probably not going to be the best plan.
Get help
Don’t be afraid to use any and all resources available.
If you’re on an employer-sponsored plan, reach out to your human resources manager. At larger companies, they’ll often have events or webinars that will explain the options and give people the opportunity to ask questions. They’re worth your time. The wrong call on an insurance plan can mean a difference of tens of thousands of dollars.
If you’re selecting a plan through the federal marketplace, Healthcare.gov has a find-a-navigator tool. This will allow you to find people and insurance agencies in your area, like Wise Health Insurance, that are trained to help people through the application and selection process.
Many other local and state agencies and nonprofits can answer questions about Medicaid and Medicare eligibility and application processes.
Being insured is much better than being uninsured
Whatever you end up deciding, just do something.
Even if you have a high deductible plan that leaves you paying out of pocket for most of your health care costs, it’s better than not having insurance at all. It could be your last defense against financial ruin.
For instance, Insurers will often negotiate discounts with providers. That means the price you’ll pay, even if you still haven’t met your deductible, would be less than the non-insured rate the provider charges.
Ultimately, even a low-cost plan can protect against catastrophically high expenses that can come from an accident or a surprise diagnosis such as cancer.
In the end, the system is probably a lot more complicated than necessary, but until that changes, it’s worth it to try to understand how you can make it work best for you.
