How to Compare Health Coverage

Selecting a health insurance plan is one of the most important and crucial decisions you will make. Having health insurance allows you to freely visit doctors, specialists and hospitals without fear of having to foot a massive bill. On the other hand, there is quite a variety of health insurance plans available and what applies to one does not apply to the other. Comparing health plans and choosing the one that best fits your needs will help both your wallet and your health.

Instructions

• 1

  Compare types of plans. The four major health plans are: Health Maintenance Organizations (HMO), Point-of-Service Plans (POS), Preferred Provider Organizations (PPO) and Fee-for-Service Plans (Indemnity). Each of the four is vastly different when it comes to selecting doctors, specialists and making payments and co-pays. Select the one that will most benefit your needs.

• 2

  Compare premiums. All health insurance plans include different costs. It's important to compare the cost of premiums to know if you can afford the type of plan you want.

• 3

  Compare coverage. Not all health insurance plans cover everything related to medical care. In fact, very few do. For example, some cover organ transplants, and others don't. It's important to select an insurance plan that covers medical conditions that apply and matter to you.

• 4

  Compare benefits. Some health insurance plans offer dental and vision coverage in addition to your medical coverage, while other plans offer only medical coverage. Health insurance plans also differ on the deductible amount, co-pay amounts, number of doctor visits covered in one year and other various benefits.

• 5

  Compare the tiers of each insurance plan. There are normally different tiers associated to each health plan, with each tier rising in price: the higher the tier the more expansive the coverage and benefits. It's important to consider these tiers when selecting a health insurance plan, as the cheapest tier may not provide you with the coverage and benefits you need.