How to Evaluate Self-Insured Health Plans

Health insurance is a necessity and if you have to purchase your own, you have more decisions to make than the average worker. The trouble with evaluating self-insured health plans is that there can be so many variables among the plans. For example, one may have a higher deductible and lower premiums, while another has higher premiums and a lower deductible. No health insurance plan is one-size-fits-all, so compare all of your choices to find the one that fits best for your situation.

Instructions

• 1

  Request quotes from all local health insurance providers. If you're not sure which companies offer insurance in your area, you can call local hospitals to see which types of insurance they will accept.

• 2

  Learn the rules for each insurance plan. For example, Health Management Organizations, or HMOs, require you to have a primary care doctor and to always visit that doctor when you have a problem. In a Preferred Provider Organization, or PPO, you can choose which doctors you want to see.

• 3

  Read the fine print when it comes to coverage options. Insurance plans may or may not cover hospital stays, dental and vision care, surgeries or cancer. Before you make a decision, you should understand what you are and are not getting with your insurance.

• 4

  Compare the total cost of your insurance plan. The monthly premiums do not tell the full story. You also need to look at co-pays--how much you must pay every time you visit a doctor--and deductibles--the amount that you must pay before an insurance provider will start its coverage. If you have a health condition that requires frequent doctor visits, for example, it may be cheaper to pay a higher monthly cost if it gives you lower co-pays and deductibles.

• 5

  Verify that the insurance will cover pre-existing conditions. If you have a pre-existing condition, it can be very difficult to get health insurance as an individual. Some companies may give you insurance, but will not cover anything related to the condition.