How to Compare Health Insurance, A Step-by-Step Guide

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Getting a viable health insurance policy is very important in the modern world. Simply put, buying health insurance gives you coverage in case of a medical emergency. The costs of medical treatments have gone up considerably in the past couple of decades. If you decide to pay for your medical treatment on your own, you may end up incurring costs as high as several hundred thousand dollars. Health insurance providers carefully survey the risks of health care and the general condition of the industry before creating a uniform financial structure. Therefore, those who buy insurance are required to pay a monthly or annual premium in order to receive the benefits as highlighted by the insurance agreement.

Health insurance plans vary from person to person. Corporate insurance plans are designed for employees of a firm. These plans are uniform and offer coverage up to a certain level for eligible employees. Some health insurance plans can also be upgraded to cover your whole family, thus making it easy to protect yourself against health risks.


The costs of medical treatments


Unfortunately, most people don’t realize that they must compare health insurance policies before making a purchase. Companies generally spend a huge amount of money on marketing and hire sales agents in order to maximize their sales. However, in order to compare health insurance, you need to have a general idea of the insurance industry and the common plans being offered. Needless to say, this is not easy.

For people who don’t know much about insurance policies and the many different options available to them, it’s very difficult to buy an insurance plan that fits their budget. In order to compare health insurance, here are a few things that you need to keep in mind:



Use a Well-Developed Tool

There are plenty of different tools that you can use in order to compare health insurance policies. Many online websites now offer you the chance to simply put in a few parameters and compare different insurance policies. However, most tools are pretty rudimentary in nature, and don’t give you comprehensive information that would allow you to make an informed decision.

There are many things that you will need to compare apart from the premium. For instance, you may want to take a close look at the out-of-pocket costs that you might incur. Almost every other plan comes with a detailed summary of benefits that also highlights the total amount of money that you will have to pay for specific services. Many state marketplaces, along with federal insurance marketplaces, give you a concise description of the costs you would incur in advance.


Health Insurance


In order to compare health insurance properly, you need to look at several figures, such as the co-pay, the coinsurance costs, and the deductible. You should also look at the extent of coverage offered by such plans. For instance, many health insurance plans may be quite extensive, but include small caveats such as not providing coverage for life-threatening injuries like cancer, etc.

Failure to look at these options could land you in hot water later on. Each year, millions of Americans get their claims rejected when they apply for health insurance coverage in order to treat life-threatening injuries. The prime reason for this is the fact that they fail to go over their own insurance policy.

Using a well-developed tool will not only help you analyze different options in detail, but it will also allow you to compare health insurance policies with all the available information. In case you cannot find some information on the website itself, you can simply file an application with the insurance provider to get more information on the service you need.



Ask Questions

Before you buy your insurance policy, it is very important for you to ask as many questions as you would like. By using a comparison tool, you will be able to create a short list of all the different insurance providers in your vicinity. Furthermore, this will allow you to whittle down the plan options to a very small number.

If you are only left with two or three plan options, now is the time to clear all your doubts. You can ask as many questions as you want of the company’s customer service center. Make sure you write down all the questions before you call the company. In order to compare health insurance policies in detail, you will need to ask a few questions to clear your doubts. Here are just some of the questions that you may ask:


  • I take a particular medicine. Is it covered under the plan? If not, does it void particular treatments that I might be eligible for?
  • Does the insurance policy cover my costs for treatment if I am traveling abroad and get sick, or will I need to buy separate travel insurance for that purpose?
  • Does my insurance policy cover maternity costs? If yes, do I get full coverage or does it cover only a certain portion?
  • What documents will I need in order to sign up for the policy? Also, when does my insurance plan become effective?


When looking to compare health insurance policies, the most important asset on your side is patience. Companies often offer limited time discounts in order to incite customers. In their haste to avail such offers, people often forget to properly compare health insurance policies and become biased towards a particular insurance provider.

That’s the worst thing that you can do, especially considering the fact that many of the provisions put forward in the Affordable Care Act are now being implemented. The healthcare industry is changing rapidly, and it is up to you to make sure that you remain informed and make a wise decision. If you don’t know how to compare health insurance policies, it doesn’t hurt to talk to somebody who’s experienced and well-versed in the health insurance sector. This will allow you to make the best possible decision based on your needs.