5 Things To Consider When Arranging Health Insurance Policies In A Bad Economy - By: Don Saunders

If you are looking to purchase health insurance in today's poor economy then here are 5 five things to look out for.

1. Does your plan provide you with cover both on and off the job?

Many health insurance plans have specific exclusions that wipe out your benefits for anything that could have been covered by Workers Compensation or similar laws. Now read that last sentence again and pay close attention to the words 'could have been covered'. That is right, the majority of self employed individuals and even some small business owners do not carry Workers Compensation on themselves.

There are specific insurance plans that will cover you on and off the job, if you are not required by law to have Workers Compensation coverage.

2. Are you writing off your health insurance premiums?

Independent contractors (1099's), home based business owners, professionals and a lot of self employed individuals do not take advantage of the current tax laws.

A lot of people who are paying all of their own costs are eligible to deduct their monthly insurance premiums. This by itself can lower your net out-of-pocket costs by up to 40%. Ask your accountant whether you are eligible or check the IRS website to get more information.

3. Look closely at a plan's internal limits

All health insurance policies use some sort of internal controls which determine how much they will pay out for a specific procedure or service. There are two basic methods which are used:

A. Scheduled Benefits

Many plans, some of which are specifically marketed to indpendent and self employed individuals, have a clear schedule of what the insurer will pay per visit to the doctor, hospital stay or even what limits are placed on payments for testing in any 24 hour period. This structure is frequently associated with 'Indemnity policies'. If you are presented with one of these policies be sure to see the schedule of benefits in writing. It is very important that you understand these type of limits up front because once they have been reached the company will not pay any costs over the stated amount.

B. Usual and Customary Expenses

'Usual and Customary' refers to the pay out for a doctor office visit, hospital stay or procedure which is based upon what the majority of doctors and facilities charge for a particular service in that geographical or comparable area. 'Usual and Customary' charges represent the highest coverage on almost all major medical policies.

4. Don't forget that you can shop around

If you are reading this there is a fair chance that you are shopping for a health plan.

Each day people shop for everything from food to a new house and during the shopping process value, price, personal needs and general market conditions are evaluated by the buyer. Bearing this in mind, it is very disconcerting that most people never ask what a procedure, test or even doctor visit is going to cost. In today's constantly changing insurance market it is going to become more and more important for for people to ask these questions. Asking about price will help you get the most out of your plan and reduce your out-of-pocket expenses.

5. Look out for networks and discounts

Nearly all insurance companies work closely with medical networks to obtain discounted rates. In broad strokes, networks are made up of of medical professionals and facilities who contract to charge discounted rates for services provided. In the majority of cases the network itself forms one of the defining attributes of your program. Discounts will vary from 10% to 60% or even more.

Medical network discounts do vary but to make sure that you pay the lowest out-of-pocket expenses, it is imperative that you check out the network's list of doctors and facilities before you commit yourself to a policy. This is not only so that you can ensure that your local hospital and doctors are included in the network, but also to see what your choices would be if you need referral to a specialist.

About the Author

If you are looking to purchase cheap health insurance then here is an excellent site to get a free no obligation health insurance quote.

Article Directory Source: http://www.articlerich.com/profile/Don-Saunders/17211

Additional Articles From - Home | Finance | Insurance