Medical emergencies can crop up anytime. With healthcare being extremely unaffordable for most Americans, any health problem can lead to a huge financial disaster. Health insurance is a must in such a scenario. However, choosing one which not only fits your budget but also meets your requirements can be difficult. Today, we will take you through a step-by-step guide, to pick an affordable health insurance policy that is best suited for your needs.

Why You Should Invest in Health Insurance

Many Americans live under the assumption that Medicare or Medicaid will take care of their expenses if the time ever comes. This is a really bad idea primarily because the eligibility criteria for both these programs are very complex. For all you know, you may not even qualify for either program. As a result, even the most mundane medical needs can burn a huge hole in your pocket.

It is critical to figure out whether you are eligible for coverage under Medicaid in the state where you live. If you don’t qualify, the need for health insurance is obvious. But don’t get complacent if you do qualify — Medicaid may not provide coverage for every condition you have or are predisposed to develop. Medicaid may not fully cover all your charges, may not be accepted by the kind of healthcare providers you’re comfortable with, and may not be accepted by healthcare providers around you.

The point is, Medicare may let you down in the most unexpected ways.

Given the exorbitant prices of healthcare around the country, it is just immensely important that you have your bases covered. As such, getting health insurance is a must to ensure your physical, mental, and financial safety.

In the next couple of sections, we will walk you through the factors to consider when you’re looking for an affordable health insurance policy.

Understanding Your Age, Location and Income

These factors make a significant difference in the insurance you are eligible for. For e.g., if you are just under the age of 65, keep in mind that you get coverage through Medicare as soon as you turn 65. So, you don’t necessarily need a separate health insurance policy. The same applies for Medicaid — check your eligibility for Medicaid and the list of providers accepting it near you before considering private health insurance.

If you’re sure that you don’t qualify for Medicare or Medicaid, or that these policies don’t work for you for whatever reason – that’s when you need to consider buying a private health insurance policy.

There are subtle differences between various private policies available on the market. For example, some policies provide you with tax deductibles and some don’t. The ones that don’t provide tax deductibles are not listed on government exchanges. To be sure that you buy the right policy for you, you need to have all the options available on a single platform. New Plan Options, for example, provides such a list that you can filter according to your needs and preferences.

Don’t worry about security because all health insurance companies, whether on-exchange or not, have to provide a minimum of 10 essential benefits enlisted in the Affordable Care Act.

Understanding Your Needs

A mistake that most people make when picking health insurance is not recognising their needs. This may seem like an easy thing to remember, but most people tend to totally forget about this and consider nothing more than their budget before picking an insurance policy.

Of course, you cannot predict your illnesses, but you can definitely get an idea of what you are predisposed to develop. Typically, these are diseases and illnesses that run in the family or result from a particular lifestyle. So you need to consider the diseases and illnesses you have higher chances of developing over time. Accordingly, you should pick a policy that will protect you in case you develop these specific problems later in life.

Another thing you need to consider is the acceptability of the policy you’re considering buying. For example, If you do not travel frequently and are sure to only visit doctors and hospitals in your vicinity, it makes no sense to get a Point of Service (POS) cover, which allows you to visit a wider network of hospitals and doctors.

Understanding needs also involves reviewing your existing plans every time before renewing them. Even if your income, social status, family etc. remains unchanged, it is better to review your policy. The health insurance marketplace is vast, with newer policies emerging continuously. Therefore, don’t miss out on newer policies and recheck your policies every time.

Comparing Additional Costs

Health insurance is not just limited to the premium you pay every month. There are many other additional costs that you have to bear, known as out-of-pocket costs. Generally, premiums are inversely proportional to the out-of-pocket expenses. That is to say, the lesser the premium the more these costs. Some of these costs are:

1. Deductibles: This is a threshold limit up to which you have to bear your expenses until the insurance company pays. High Deductibles could lead to you spending and paying for a large number of expenses yourself. So if you have lesser fixed medical expenses, choosing health insurance with a lower deductible and a higher premium, will save you more money.
2. Co-payments: These are fixed expenses that have to be borne by you despite your insurance. Generally, a percentage of these expenses are shared by your insurer. Opt for lower co-payments if you have regular medical expenses.
3. Co-insurance: This is similar to co-payments, where a percentage of expense has to be paid by you.

So, make sure you compare each shortlisted insurance thoroughly examining all costs, before picking one. You can view a consolidated list of all expenses of all shortlisted plans together on New Plan Options, for a better comparison.

Comparing Different Plans

Once you have shortlisted a few policies, start comparing each of them from the list of needs and costs you made earlier. Through this, you can eliminate options until you finally pick one. Yes, it is not as easy as we made it sound like. You are bound to be confused and not understand many things. Here it is best to not stress and take help. You can contact the insurance companies individually and get your doubts cleared. But there are two problems with this:

1. The company representative is going to be biased towards their policy
2. It will be a waste of time to speak to so many companies.

Thus, it is better to pick an expert who is unbiased. With New Plan Options, you can schedule an appointment or chat with an agent to compare different policies and get experts to pick the right health insurance for you.

Health insurance has always been a difficult choice. But with some strategy and expertise, you can ease your process and ensure you select the best and most affordable plan for yourself!