When you start looking at insurance plans, the options can sometimes be overwhelming. How do you decide which plan will have the best benefits for you at a price that fits your budget? Consider these tips while you are making your choice:
1. Decide whether you are more comfortable with an HMO or PPO plan.
With a PPO, you pay a bit more to get a chance to see the doctor of your choice. HMOs are more restricted, but can save you a lot of money. If your current doctor is an option with your HMO of choice or if you are comfortable making a switch, this can be a good fit that keeps money in your pocket. But, if you prefer to have a wider choice, a PPO may be worth the extra out of pocket.
2. Be honest about how much you can afford in an emergency.
A plan with a $12,000 out of pocket limit may seem affordable until you consider that you’ll be on the hook for that amount if something major happens. If you have substantial savings that you don’t mind putting on the line, this can be a workable situation. But, you may want to pick a lower cap otherwise.
3. Consider prescription costs.
Most American adults have a few prescription medications that they take sometime during the year. This can get costly, especially if you have a medication that you need to take every day. By picking the plan that has the best prescription coverage, you can cut your costs.
4. Ensure that the plan you are looking at is ACA-compliant.
Independently offered plans need to meet certain restrictions to be qualifying coverage.
5. Make sure you enroll by the deadlines.
There are limited open enrollment periods each year for many plans. Mark the date on your calendar to make sure you are ready to buy when you need to.