What Should Be Considered Before Choosing Health Insurance (28) .pdf
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What Should Be Considered Before Choosing Health Insurance?
It is very difficult to make a right and wise decision on which Health Insurance Policy to buy. This
is truly a confusing task. Here is a guideline. Here are the five most important things you have to
pay attention to. These items are also your keys to picking a policy that's right for you:
The insurance company's record of complaints: Every large company will have some complaints.
You can obtain all this information at your State Board of Insurance. Avoid companies that have a
high number of unresolved complaints. Ask your agent for the phone number for your State Board
of Insurance. If he will not give it to you, this is a warning signal! You can also look up the number
in any directory of your state's agencies. No matter what your agent says, CALL Independent
Producers of America and ask them for the record on any company you are considering.
The limits shown on your health insurance quote: Check your quote to see if you are comfortable
with the benefit levels. You can usually change several levels to fit your needs and budget. For
example, a higher deductible will cost less each month. Also, many plans give you a choice to split
your medical bills with the Insurance Company either 50/50 or 80/20 (with them paying 80%). Then
they will have an amount (your stop loss) where they will take over at paying 100% of your covered
bills for the remainder of the year. These deductibles and other levels start over every year in most
plans. Some plans, though, have a "per cause" deductible. Such a deductible means that you will be
responsible for bills up to that deductible for each accident or illness. Make sure you are aware of
this distinction, so you can choose a plan that's right for YOU!
The insurance company’s rating: Ask your agent for the company's best rating. If the company is
highly rated at this national rating registry, then the company will have literature showing their
rating with an explanation of what it means. Choose only companies that have an A or A+ rating.
The limits revealed within the policy: Ask your agent for a sample policy, and then check two
sections: The Benefits and The Limitations and Exclusions. Many of your benefits are actually
limited in the Benefits section. For example, diagnostic testing or outpatient treatment may be
severely limited. These days, you could have a serious disease such as cancer, and never go into the
hospital for it. You could rack up thousands of dollars in medical bills for the diagnostic and followup lab tests and MRIs, and then have surgery, chemo, or radiation therapy all on an outpatient basis.
Your hospital room rate and intensive care can be limited. Your hospital room rate should be at least
average semi-private and your intensive care benefit should not be tied to your room rate, but
should, instead, be covered as whatever is an average ICU rate for the area of the hospital, also.
Some policies limit the ICU benefit to 3 times the regular room rate, when ICU can cost you 10 or
20 times the room rate each day. A short hospital stay with a limit like this in your policy can cost
you literally thousands of dollars. A long hospital stay with a limit like this in your policy could
drive you into bankruptcy. Even if your policy says it takes over at 100% after $5,000 of covered
medical bills, the important term here is "covered" medical bills. If the policy only pays three times
the room rate for ICU, then the rest of the ICU bill is considered an "uncovered" charge!
Pay the Insurance Company, Not the Agent, & Follow Up!: And lastly, make your check payable to
the Insurance Company, and then follow up to make sure it was received. When you get your policy,
check the Schedule of Benefits with Independent Producers of America to verify you got the
coverage you ordered, and then check to see if any special Amendments were added to your policy
to exclude any of your conditions. If an Amendment exists, these conditions will always be excluded
from this policy, even after the Pre-Existing Conditions Limitation expires.
With all these 5 items, they will help you which will protect you from catastrophic medical bills. Be
sure to take the time to choose wisely when it comes to your health insurance!