Shopping for health insurance is like shopping for any product. You want to make sure that the health insurance provider is reputable. Make sure the company can live up to it's promises to compensate you for your bills should you find yourself in need of medical attention.
The best way to check up on health insurance
companies is to examine their ratings on government and consumer
run websites. These agencies monitor the activities of health
insurance providers and rate them according to their financial
solvency and ability to efficiently pay out claims. Health insurance
experts advise avoiding companies that appear to be amply subsidized
by the government as that may indicate that they are inadequately
You can also determine how reputable a company
is by examining its rates. Quality insurance companies pay claims
based on a premise called the Reasonable and Customary Rate or the
Usual and Customary Rate. This rate is based upon an averaging of
the costs charged by all the physicians and facilities in your area.
It is common to find insurance companies that will cover up to seventy-five
or eighty percent of the Usual Customary Rate. However you know
you have found a great health insurance company when they offer
to reimburse you for 90% of what you are charged by a facility or
Health insurance experts also advise that
you purchase the highest maximum annual deductible that you can
afford without putting you in the poorhouse. However, this rule
only applies if you are well. In the unfortunate event that you
are absolutely certain that you will incur high medical expenses
then you should purchase health insurance with the lowest possible
It is also advisable to choose a health insurance
plan with a maximum pay out of at least $2,000,000 over your lifetime.
A lower amount might not be enough.
You should also make sure that your plan allows you to use any licensed
physician or facility in the United States. Read the fine print.
You don't want to be denied coverage because you traveled out of
a geographic area that has been specified as insurable in your policy.
Once you have decided on a health
insurance plan, make sure you pay your premiums promptly when
they are due. Coverage can be cancelled with not notice if you do
not pay your premiums on time. There is nothing worse than having
to beg a health insurance company to reinstate your policy. Do not
be that individual who is denied health insurance just when they
need it the most!