How to Choose Group Health Insurance

Choosing group health insurance can be confusing and time consuming because of the different plans' benefits, costs and verbiage. The technical jargon and costs can make the difference between a good plan and a great plan. Choosing the right one can be done, however, if you prioritize and follow a few simple steps.

Instructions

• 1

  Prioritize your needs. Are you planning on having children? Are you in a high-risk category for a chronic or genetic ailment? Will you need lots of dental work? What kind of vision plan will you need? Knowing your health status before deciding on a group health plan can eliminate many of them off the bat.

• 2

  Cut costs. Some plans come with prescription drug coverage, pediatric care plans, elder care plans or other plans that are geared toward ongoing care. If you are in relatively good shape, young, or not planning on having children, you can cut costs by eliminating plans or plan options, with services you won't use often or may not use at all. For example, choosing a group health plan with a higher co-pay on prescription drugs if you have no chronic ailments may save you hundreds of dollars every year.

• 3

  Determine your medical preferences. Do you like the doctor you already have and would not consider switching to save money? Then you may want to have a PPO or Preferred Provider Organization, which may be more expensive but offers you a flexibility that may include keeping your current physician. If you don't care what doctor you have or you don't have a physician already, consider an HMO or Health Management Organization. The cost is cheaper because you have a limited pool of physicians, and the cost of going outside the organization's coverage is very steep.

• 4

  Decide your budget needs. Some people need to find the best possible coverage but are constrained by the amount they can afford to pay. If all plans are equal (or roughly similar), the least expensive group health plan will be right for them. If your budget can stand it, however, a more expensive plan may be better because cheaper does not always equal a better deal for you and your health.