When it comes to understanding health insurance, many people lack confidence. With so many different topics and concepts at play, it is no wonder that these people feel intimidated. However, it is important to educate yourself because it is one of the most important decisions you have to make. Here are some tips to get you on your way.
If you’ve just graduated from college and are looking to purchase health insurance for the first time, keep the following in mind. If you are currently employed, you may be eligible for your employer’s insurance plans. If you are younger than 26, your parents can still have you under their plan, or you can look up individual options too.
Find out if your place of employment offers any type of employee wellness program. This can save you health insurance costs. More and more companies are starting to offer incentives to employees who agree to have a health and lifestyle assessment. Then you might be eligible for a fitness program that will help your company save on its insurance, and in turn lower your premium.
When it is time for you to update your policy, check your current plan to verify that you still need all the services you are paying for, and that you have enough coverage. Your insurance needs can rapidly change as your health changes and your family grows. You can also make changes to vision, dental and other insurance options.
Plan out your future accordingly, because group coverage is usually cheaper than individual policies. You could find yourself having to make compromises with an individual package, like paying a higher deductible or even opting for less coverage. Shop around for the best rates and coverage.
Obtaining catastrophic coverage instead of comprehensive coverage can often save you money on health insurance. Comprehensive covers certain instances, but catastrophic covers emergency care and hospital visits, as well.
Generic drugs will always save you money regardless of the type of health insurance coverage you have. In very rare circumstances a generic won’t be available to you. Generics have been proven to be as effective as any name brand.
Choose which type of health insurance policy works best for you. HMOs and PPOs are common choices, but don’t count out POS plans just because of their acronym. Each has different pros and cons that you should find out and consider before you purchase a policy. You should have the choice to keep your current doctor.
Check your insurance coverage periodically to determine which medicines are paid for by your plan, and which ones are not. The list of covered items is called a formulary in the insurance world and this list changes every year. Some new items will be covered, and some older ones may go away so reviewing every year is important. If you find that a previous prescription is no longer covered, talk to your doctor about switching to one that is.
Pay attention to your bills. Even when covered by a full-fledged medical plan, the bills that pop up can catch you off guard, especially in regards to prescriptions. Generic versions of medications are often ignored by doctors writing prescriptions. If you can use different pharmacies, do some research to find out which one has the best prices. Generics are generally cheap, but different pharmacies have different prices.
Catastrophic coverage is a viable option for those who cannot afford the premium payments for a more comprehensive health insurance policy, but who want some coverage in the event that there is a sudden major illness or accident. Catastrophic coverage is also a helpful addition to any existing health insurance because it will cover extreme circumstances that other policies might not.
As you’ve read, in spite of the complexity of health insurance there’s a lot you can comprehend. You just have to work on getting the information you need. By using the advice from the above article, you can make smarter health insurance choices.