Comments on: What to Look For in a Good Health Insurance Policy http://www.finetunedfinances.com/2009/03/what-to-look-for-in-a-good-health-insurance-policy/ Make Your Wallet Run Like New Again Mon, 15 Mar 2010 19:55:14 +0000 http://wordpress.org/?v=2.9 hourly 1 By: Michael Harr http://www.finetunedfinances.com/2009/03/what-to-look-for-in-a-good-health-insurance-policy/comment-page-1/#comment-267 Michael Harr Fri, 20 Mar 2009 05:12:43 +0000 http://www.finetunedfinances.com/?p=479#comment-267 The easiest way I've seen to find a health policy is to look at ehealthinsurance.com as a starting point and then contact a local agent if needed. The big decision today is determining whether to use a traditional HMO or PPO plan or an HSA. These are fancy acronyms for policies that have low co-pays versus high co-pays/deductibles. For example, an HSA may cost $180/month with a $3,000 deductible compared to an HMO at $450/month with no deductibe and $25 co-pays. The bottom line is that it's irrelevant to the insurance company which policy you purchase because their ultimate long-term cost is the same. What matters is how you'd like to pay for your medical care. Through regular premiums (HMO/PPO Plans) versus a la carte (HSA Plan). If you have a major illness, the cost is likely to be similar between the two, and it's just a matter of whether you elected to pay a higher monthly premium for lower co-pays/deductibles or if you paid less in monthly premiums in exchange for higher out of pocket maximums. As a general rule, if you have an adequate emergency fund, and HSA will likely save you money over time. If you don't have an adequate e-fund and don't manage to save regularly, an HMO/PPO plan might be better suited to you. If you need help, talk to someone who knows health insurance as a full time job. The easiest way I’ve seen to find a health policy is to look at ehealthinsurance.com as a starting point and then contact a local agent if needed. The big decision today is determining whether to use a traditional HMO or PPO plan or an HSA. These are fancy acronyms for policies that have low co-pays versus high co-pays/deductibles. For example, an HSA may cost $180/month with a $3,000 deductible compared to an HMO at $450/month with no deductibe and $25 co-pays.

The bottom line is that it’s irrelevant to the insurance company which policy you purchase because their ultimate long-term cost is the same. What matters is how you’d like to pay for your medical care. Through regular premiums (HMO/PPO Plans) versus a la carte (HSA Plan). If you have a major illness, the cost is likely to be similar between the two, and it’s just a matter of whether you elected to pay a higher monthly premium for lower co-pays/deductibles or if you paid less in monthly premiums in exchange for higher out of pocket maximums.

As a general rule, if you have an adequate emergency fund, and HSA will likely save you money over time. If you don’t have an adequate e-fund and don’t manage to save regularly, an HMO/PPO plan might be better suited to you. If you need help, talk to someone who knows health insurance as a full time job.

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