The health insurance marketplace is complicated, and there’s no one-size-fits-all approach when it comes to picking the right policy. It might be the most expensive investment one pays for each month. However, it can be the difference between living comfortably and living in a constant state of financial insecurity. Here’s some advice that could make the process less confusing.
Look in The Right Places
Medicare is a federally run program and pays for much of health care if one is 65 or older. If one has already enrolled in Medicare or is in a Medicare Advantage plan, the open enrollment period to change supplemental health and prescription drug plans runs through Dec. 7.
Most of us under 65 years of age get our health insurance through our employer. They cover part of our premium costs, which is pretty nifty. A supervisor or the company’s human resources department can provide details regarding health insurance plans.
Another government program for low-income people, Medicaid, insures about 80 million people —nearly one in four Americans. It’s jointly supported by the federal and state governments but managed by each state, so eligibility varies from state to state.
Think About Health Conditions
To start the process of choosing a health insurance plan, think about the predictable costs that are likely to come up. If one thinks they won’t have many health care bills and their workplace offers one or two options, signing up through their company’s benefits portal could be convenient.
To find out if a given plan covers one’s doctor or if their medication is on the formulary (the list of medications an insurance plan will cover), one can enter in their information during the online search process or call and ask.
Understand Health Insurance Terminology
In order to figure out which health plan might work best for one’s budget, it helps to know several important insurance terms — words like premium, cost-sharing, deductible, and copay.
Insurance companies use different types of charges to keep their own costs manageable. A basic plan they sell might have a low monthly premium, keeping the cost low for clients’ budgets. That same plan might have a high deductible, so clients will have to spend a lot out of their own pocket on health services before their insurance begins to pay its portion of the cost.