More on Buying Your Own Health Insurance
Posted by Lynnae on August 16, 2007
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I’ve learned a few things about buying your own health insurance over the last couple of days. The process isn’t really that difficult, but there are some important things to do before you take the plunge. Here are a few of the things that I’ve learned.
Compare Rates
There is a huge
difference in rates between different insurance companies and different
plans. You need to figure out how much coverage you need and how much
you’re willing to pay. In general, a higher deductible will mean a
lower monthly rate. You need to balance the rate you pay against a
deductible. If you can afford to take a high deductible, it would be
worth it to pay a lower rate every month. It’s easy to compare
insurance rates on-line. Sites like Netquote and eHealthInsurance make it easy to obtain information in
minutes. I used Netquote, and I started getting insurance quotes within
the hour. But don’t buy yet.
Talk to an Insurance Broker
Different
states have different insurance regulations. It’s important to talk to
someone who is knowledgeable about the insurance laws in your state.
The broker I talked to informed me that I live in one of the most
regulated states, so it is very important to stick with insurance
companies that are underwritten in my state. He said that buying an out
of state plan was worthless in my state. I wouldn’t have known this,
had I not talked to a local broker.
Another advantage of going
through a good broker, is that they can go to bat for you if you have a
dispute with the insurance company. Since you’re not getting a policy
through your employer, you won’t have a human resources person to help
you out, should the need arise. A good broker will be willing to act as
a go-between to deal with the insurance company, should you ever have a
dispute. That’s another good reason to buy an in-state policy, as well.
It’s easier for a broker to work with an insurance company on your
behalf if he lives near the insurance company’s main offices.
Compare Insurance Companies
Once
you have a couple of quotes from a reputable insurance broker, you need
to compare the companies. A good source of information is your state’s
Department of Insurance website. I was able to look up the number and
types of complaints that were filed against the companies I was
considering. I was also able to look at financial statements. I relied
on information from my broker as well. He refused to sell insurance
from certain companies, because of their bad reputation. He sent
me to the Department of Insurance website for my state to back up what
he said.
You need to decide which type of plan is right for you.
An HMO, PPO, or traditional plan will likely be your choices. There is
no one size fits all rule here. It will depend on how often you see
your doctor. If you just want catastrophic insurance, a traditional
plan may be your best bet. If you have a baby and need well-baby
checks, an HMO or PPO might be the way to go.
Another very
important thing to check is what doctors and hospitals are part of each
plan. You don’t want to sign up for insurance, only to find out you
have to travel to the next county just to see a doctor. If you have a
doctor that you currently see, call his office to make sure he accepts
this particular insurance. Each insurance company should have a list of
doctors they work with, but these lists are sometimes out of date. It
never hurts to double check with your physician.
Finally
consider the details of each plan. Do you need vision coverage?
Prescription drugs? Is alternative medicine important to you? When the
choice between two companies is difficult, these are the kinds of
things that can make the decision easier.
Whatever you do, make
sure you do get insurance coverage. It is much better to pay $300 a
month out of your pocket for coverage than to have a 10 day hospital
stay with no insurance coverage. Even if you can only afford to get a
policy with a $10,000 deductible, it’s better than not having any insurance
at all.
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I am not a financial expert. I'm just a wife and mom doing the best I can to live a frugal life and get out of debt. Like any human, I make mistakes. I write this blog out of my own experiences, and nothing I write should be taken as expert advice. If you need financial advice, please consult a professional.
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Now the hard part, being accepted!! We were accepted for an increased (read HUGE) increase from the regular quote because of pre-existing conditions. That is why it is easier for us to have the group insurance.
You have done a GREAT job with your homework! You have some very informative websites to share! Keep us posted on how it turns out!