How to Compare Health Care Insurance Costs

Health insurance is a large expense for families that carry coverage. Even for people who receive health benefits from an employer, the high cost requires a careful choice of plan and coverage. Many options are available, but no one plan is ideal for everyone. When comparing health plans, you must consider many factors such as coverage amounts and choice of doctors. These factors can have a big impact on how much a health plan can cost.

Things You'll Need

• Legal pad of paper
• Pen
• Calculator

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Instructions

• 1

  Read about and research the different health plans available to you through your employer. While some employers offer just one type of plan, many offer multiple varieties. Your employer's human resources department may be able to help you choose a plan with the most reasonable cost. If your employer doesn't offer a suitable plan, or you are self employed, then you will have to choose from private insurance providers. The options here vary by state, ranging from just one or two available plans to many plans from several insurers. Consider high-deductible plans to include in your comparison as well. These plans usually have a deductible of more than $2,250 and carry considerably lower premiums.

• 2

  Calculate your contribution for any of the plan options that you wish to compare. If you are employed, that is the share that you pay for the coverage. If you are looking at an individual plan, you will be taking into account the total amount of the premium to compare. Consider if the premium is able to be paid before taxes, which can reduce the amount of the premium.

• 3

  Compare your additional out of pocket expenses with the different plans. A common out of pocket expense is a deductible. This is the amount that you must pay yourself before the insurance begins paying any expenses. Co-pays are another expense. This is usually a flat fee that you pay for certain services. A plan may charge $20 per doctor's office visit as a co-pay. Prescription drug coverage is another area that commonly has a co-pay.

• 4

  Write down the plans that you are considering across the top of a legal pad of paper. On the side of that pad, write down the variables with each plan. Fill in the center grid with the answers for each plan. This fact sheet will be your resource as you compare the different options and the cost of each. Compare different scenarios and see what each plan would pay in that event. In the case of a high-deductible plan, you must balance the reduction in premium with the additional amount that you may have to pay if you have a health care expense. Decide for yourself how much risk you are willing to accept.