Choosing health insurance is an important decision that can affect the health of your family as well as yourself. The selection process can be confusing. Deciphering between premiums, deductibles and co-pays can leave you frustrated to the point that you feel overwhelmed. At KSA Insurance, we take the stress out of health insurance for our clients in Virginia, Maryland and Washington D.C.
Health insurance information is for everyone. On the Internet, in newspapers, on billboards, and in magazines. It can be difficult to understand healthcare and the various health insurance options available if you don’t understand the basic concepts of the plans available to you. Using the services of a health insurance agent can help you select the right plan for you and your family that offers the coverage you need at a price you can afford.
One of, if not the, most important factor that impacts the decision to purchase a specific health plan is how much it costs. A common error people make when selecting a plan is that they only look at the monthly premium and fail to consider other costs, causing them to purchase a plan that fails to meet their needs. The three primary factors to consider when evaluating a health insurance plan’s costs are the premium, deductible, and co-pay.
The premium is how much you pay each month for your health insurance policy and coverage limits. This isn’t the only cost to consider when evaluating which health plan to purchase. You’ll also be responsible for other costs such as your deductible, copayments and co-insurance if applicable. Keeping all these numbers in mind will help you select the best plan that fits into your budget. If you base your decision strictly on the premium, you might be in for a surprise when you begin to use your health insurance benefits and need to pay for other costs you weren’t expecting.
Choosing the plan with the lowest premium might be ideal if you don’t require a lot of medical care, but if you have health concerns or conditions that require frequent medical care, you’ll generally save yourself a lot of money by going with a plan that has a slightly higher premium with a lower deductible. Purchasing a plan through the Health Insurance Marketplace makes you eligible for tax credits to help pay the premium for your policy. The credit depends on household size and income. The credits have the potential to significantly reduce your health care premium, and can cover most or all of the cost in some circumstances.
A deductible is how much money you have to pay for health costs before your insurance plan begins to pay on your behalf. A plan with a deductible of $1,500, for example, would require you to pick up the first $1,500 in medical costs before providing coverage. Some plans have separate deductibles for other services, such as prescription medications. When deciding to purchase a family plan, it’s important to look at both the individual and the family deductibles of a policy before selecting your policy.
Once you meet your deductible, insurance begins to assist with your medical costs and you are only responsible for a portion of the costs incurred. The amount of your plan’s deductible depends on how much you pay for it. Plans with lower premiums tend to have higher deductibles to spread the costs of providing coverage out among the entire pool of insured people. The cost of a service after the deductible is met could be a flat dollar amount or a percentage of the total costs.
Many health plans cover specific preventive services before you’ve met the deductible limits on your policy. These generally include immunizations, check-ups for routine care, mental health and addiction assistance and screening for potential health issues or diseases.
The third cost you’ll incur is your policy’s co-payment on specific services. Even after you meet your deductible, you’re still responsible for paying a portion of future medical expenses. You will pay the full cost of the service until you’ve met your deductible, at which time you will only be responsible for a portion of the bill, such as $25 of a $100 bill total. Co-pays are not the same for all services and the rates will vary for appointments, lab testing, and visits to specialists. Most medical practices tend to require you to pay the co-payment for your insurance at the time that services are rendered.
Plans with lower monthly premiums generally have higher co-pays than plans with higher premiums. A higher premium might save you money in the long run if you expect to visit your primary care physician or a specialist on a regular basis or take prescription medications.
You don’t have to make the decision to purchase health insurance on your own. Utilize the services of an experienced insurance agency to help you secure a plan that works for you and your wallet. KSA Insurance also assists business owners who are looking to select a health insurance plan and provider to offer coverage to their employees. The choice is easier when you have help from competent professionals.
Our agents will help you pick the best health insurance plan for your needs.
Cost is one of the main concerns people have when shopping for health insurance. There are three main areas you need to look at when comparing the price of different health insurance plans:
Some plans may have a higher premium and lower deductible, or vice versa. We will go over all the available options with you so you can make an informed decision about your health insurance.
Call KSA Insurance today to get a free quote for health insurance. In addition to working with individuals, we also work with businesses looking to set up a health insurance program from employees.