| We really don’t
think of health insurance often enough. In fact, most people
probably don't think of health insurance at all until they are faced with a
health crisis or crushing need! They choose the right insurance
carrier once and stick with that company through thick and thin.
Even when they move three states away they expect the same coverage
they had way back
when.
It is no wonder that many of us are caught flatfooted when an emergency happens. Suddenly we realize that the insurance coverage we had ten years ago is woefully out of date for our current needs. |
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| Purchasing health insurance
can be a hazardous task all by itself. If this is your first
time, go on down to the check list in the next table.
If you have moved to another state, or are simply unhappy with your current health insurance carrier then the VERY FIRST THING you want to do is MOVE CAUTIOUSLY! If you have acquired some pre-existing conditions, OR gotten a little bit older, then your current insurance carrier may well be providing loyalty and vested interest in doing more for you at a lower price than you can negotiate with another carrier. Consequently, if you just look at the surface figures you might not recognize what a bargain you already have. "Why, I can save $750 per month by switching.." Oh yes, but you might be moving from one kind of health insurance to another and not even realize it until you have signed on the dotted line. And many times it isn't even the insurance company that is most important to you; it is the preferences of the doctors and hospitals that are now near you! I once moved less than 500 miles and had NO COVERAGE because doctors there refused to accept my insurance company. Remember too that any plan you purchase is only as good as the insurance company that underwrites and stands behind it. |
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1. Full Disclosure When purchasing an individual health insurance policy, the underwriter will look at your medical history. Prior to comparing rates, be sure to write down all pertinent information, so you will be able to compare apples to apples. Additionally, it will give you a feel for what kind of information raises red flags for the insurance companies in your area. you also want to be cautious if the health insurance company you are investigating is TOO LENIENT. For example: if a company does not bat an eyelash at your skydiving accident that happened just last month, you will need to ask a few more questions to make sure the rates don’t suddenly change after you sign on. 2. Your Pre-Existing Conditions Most companies will not insure pre-existing conditions; others will do so after a sometimes lengthy waiting period. Still others are legally mandated to carry "guaranteed issue" policies. Prior to signing on with a company, get a detailed list of what is considered a pre-existing condition, the exclusionary period, and also what kind of coverage will be provided once the exclusion ends. 3. Interview An Agent A licensed, independent insurance agent is a goldmine of information and industry gossip. Furthermore, the agent will be able to share feedback received from other clients about a given health insurance company, insurance products, and even customer service. On the other hand, the health insurance company is not bound by anything not in writing. 4. What Does The Future Hold? When picking an insurance company it is imperative that its products and protection can grow with you and meet your changing needs. Thus, a company that specializes only in catastrophic coverage will be of little use once you have children in the house. 5. Have It Your Way! Since you will have to live with the health plan of your choosing, it is imperative that it will work for and with you. Therefore, you should think through your wants and needs when it comes to coverage. For example, how important is it to you to pick your own doctors? If it does not really matter to do, then an HMO may be a cost-saving choice. On the other hand, if you have a favorite doctor and wish to continue consulting this physician rather than picking someone else, you may wish to consider the pricier PPO. 6. Add-Ons Some companies will bundle their products with other coverages, such as short- and long-term disability, prescription drug coverage, dental and vision coverage. If these are important to you, you should make sure the insurance company you wish to do business with will offer them. 7. Out Of Pocket Expenses? Take the time to look at the fine print. For example, how much are the co-pays? Is there an annual cap on the co-pays? Do these caps pertain to a calendar year or any 365-day period? In addition to co-pays, what is the percentage of coverage? 8. Accessibility An insurance company should be easy to contact, should have extended office hours, and naturally also a toll-free number. Give the company a call and get a feel for average hold times, times of operation, and also services offered via telephone. 9. Rating Check out the insurance company’s rating with your state's insurance commission. A company that has too many unanswered complaints does not need your business! 10. Rate Increases Talk to friends and neighbors who are insured with the company you are choosing, or if you are working with an agent, seek to find out how often the insurance companies has raised its rates in the last two years. This will be a fair measure of the possible rate changes that will await you once you sign on! |
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