Insurance Basics
A lifesaver float and a $1 sign in the background
insurance
Examining the health insurance company

Price is only part of the equation when it comes to selecting health insurance. You also want to make sure you have a consumer-friendly company that makes it easy for you to get the care you need.

Once you've put a price on it, look at how easy or difficult the plan is to use. If there's a list of preferred providers, are your favorite doctors on the list? Which hospitals can you use? How difficult is it to see a specialist or get a second opinion? Would you need a referral? Does the plan cover preventative care, like annual physicals and well-baby visits? Are prescriptions you regularly use covered? Does the plan include any "extras" that you regularly use, like eye care or chiropractic visits?

Pre-existing a must

If you're currently insured, pre-existing conditions have to be covered, says Paul Fronstin, director of the health research and education program for the Employee Benefit Research Institute.

If you've gone more than 63 days without coverage, how long would the policy exclude any existing problems? It has to cap the pre-existing condition exclusions at a maximum of one year, says Fronstin.

"Employers will typically not have these exclusions anyway, because they don't make good sense," he says.

Once you've looked at the plan on paper, you want an idea of what it will be like in action. That's where it pays to check out the health-care company itself.

Check them out

Do you know people who are already on the plan? If so, what has been their experience? Go online to see what other consumers are saying about the company and its coverage. Call your state insurance department to see if you can get the complaint ratio or any other information it might have.

Industry watchdogs
  1. National Committee for Quality Assurance (Conducts regular member satisfaction surveys and grades companies on service and care)
  2. Do you just want a safety net to protect you in case of something catastrophic?
  3. Accreditation Association for Ambulatory Health Care
  4. Joint Commission on Accreditation of HealthCare Organizations
  5. URAC, the American Accreditation HealthCare Commission

To look at the company's financial health, try: Standard and Poor's, A.M. Best Company, Moody's Investors Service and Weiss Ratings.

Quality is the first priority

Whatever you choose, be practical. Look at the quality of care and coverage, not just the bottom-line price. And if a policy doesn't give you enough coverage or you can't meet the deductibles, select something else. To compare insurance policies and quotes, visit Insureme.com, a Bankrate company.

While health-care savings accounts, which are combined with a high-deductible or catastrophic policy, are popular because of the cost savings, they're not a good option if you can't meet that deductible, says Bill Vaughan, a senior policy analyst at Consumers Union, the publishers of Consumer Reports magazine. Unfortunately, that knocks out two-thirds of the people who are using them.

"Three million people have a high-deductible insurance policy," says Vaughan. "But only 1 million of them have been able to scrape up enough money to have an HSA."

advertisement

Insurance Rates Search

Receive an insurance quote
Auto - 30-YR Old Couple average
$1724
Insurance
This is the daily overnight average for auto insurance for a 30-year-old couple.
Find the best insurance rates in your area
Enter ZIP code:   
Select a product:
Compare Insurance Rates



advertisement
Auto Insurance Averages
Product Rate
Auto - 30-YR Old Couple
$1723.56
Auto - 45-YR Old Couple
$2754.17
Auto - 50-YR Old Female
$1279.53
Auto - 50-YR Old Male
$1320.96
View rates in your area:
insurance
Put your financial house in order now so your loved ones won't have to sleuth after you die.
advertisement
advertisement

Picky about what you read?

We'll send you our latest news on the topics you choose.

Subscribe:RSS Feeds