How to Find the Best Health Insurance Plan

Millions of Americans are currently without health insurance. Of those uninsured, many wish to purchase their own individual policy. Health insurance plans are complex and sometimes very hard to understand, so finding the best health insurance plan can be a formidable task. Understanding your state's insurance laws and the basics of health insurance can help you find the best plan that will fit your needs.

State Health Insurance Laws

• State health insurance laws can affect what type of health insurance plan you qualify for or can obtain. Some states such as New York require insurance companies to offer health insurance to everyone. A few states such as Mississippi have a high-risk pool for individuals with pre-existing conditions who can't find a plan in the open market. Buying into the high-risk pool can be pricey. The cost is usually lower than what private insurance companies would charge for those with a pre-existing condition---if they even covered them at all. If you cannot understand your state's laws, consider contacting a health insurance broker who can help you find a plan that meets your needs.

Deductibles and Co-pays

• When shopping for health insurance, it is easy to become shortsighted. Some people focus only on finding the cheapest monthly premium. While an affordable monthly premium is an important part of selecting your plan, it is only one small piece of the puzzle. When determining the overall cost of your personal health insurance plan, you need to figure in variables such as deductibles and co-pays. A deductible is the total amount of money you will be out of pocket before the health insurance plan will pay claims on your behalf. A co-pay is the amount of money you will have to pay to obtain a specific service. Co-pay is not credited toward your annual deductible. Typically, as your deductible and co-pays decrease, your monthly premium will increase. This is because the health insurance company will have to shell out more money to pay for your claims.

  Some individuals have health insurance just in case they have a sudden terrible illness or emergency. For these individuals, a high deductible and co-pay plan could be the right choice. However, someone who knows they will go to the doctor several times within a year may need to purchase a more comprehensive plan with a lower deductible and co-pay structure.

Coverage, Terms and Limitations

• If a health insurance premium sounds too good to be true, it probably is. It is crucial to fully understand the coverage, terms and limitations of a health insurance plan before making a purchasing decision. Thousands of horror stories are on the web about how people misunderstood their health insurance policies and had their whole life savings wiped out because of a health issue or emergency. Read the fine print of your policy and find out what types of services are excluded, what type of coverage is allowed, and any steps you must take to obtain coverage on a major medical service. You need to know if referrals are necessary for coverage at a specialist. This could mean you need to see your primary care doctor before going to a specialist. You also need to know the term of your policy. Some health insurance policies are short-term policies that are only good for six months or so. If you experience a major medical problem during that six-month period, the insurance company can deny claims during subsequent periods because of pre-existing conditions. Fully understanding everything about your health insurance policy is crucial to getting the best deal available to you.