Picking The Right Health Isurance Policy - 5 Main Things To Do

It is very difficult to make a right and wise decision on which Health Insurance Policy to buy. This is truly a confusing task. Here is a guideline. Here are the five most important things you have to pay attention to. These items are also your keys to picking a policy that's right for you

1.) The insurance company's record of complaints:

Every large company will have some complaints. You can obtain all this information at your State Board of Insurance. Avoid companies that have a high number of unresolved complaints. Ask your agent for the phone number for your State Board of Insurance. If he will not give it to you, this is a warning signal! You can also look up the number in any directory of your state's agencies.

No matter what your agent says, CALL your State Board of Insurance and ask them for the record on any company you are considering.

2.) The limits shown on your health insurance quote:

Check your quote to see if you are comfortable with the benefit levels. You can usually change several levels to fit your needs and budget. For example, a higher deductible will cost less each month. Also, many plans give you a choice to split your medical bills with the Insurance Company either 50/50 or 80/20 (with them paying 80%). Then they will have an amount (your stop loss) where they will take over at paying 100% of your covered bills for the remainder of the year. These deductibles and other levels start over every year in most plans. Some plans, though, have a "per cause" deductible. Such a deductible means that you will be responsible for bills up to that deductible for each accident or illness. Make sure you are aware of this distinction, so you can choose a plan that's right for YOU!

3.) The insurance company’s rating:

Ask your agent for the company's best rating. If the company is highly rated at this national rating registry, then the company will have literature showing their rating with an explanation of what it means. Choose only companies that have an A or A+ rating.

4.) The limits revealed within the policy:

Ask your agent for a sample policy, and then check two sections: The Benefits and The Limitations and Exclusions. Many of your benefits are actually limited in the Benefits section. For example, diagnostic testing or outpatient treatment may be severely limited. These days, you could have a serious disease such as cancer, and never go into the hospital for it. You could rack up thousands of dollars in medical bills for the diagnostic and follow-up lab tests and MRIs, and then have surgery, chemo, or radiation therapy all on an outpatient basis.

Your hospital room rate and intensive care can be limited. Your hospital room rate should be at least average semi-private and your intensive care benefit should not be tied to your room rate, but should, instead, be covered as whatever is an average ICU rate for the area of the hospital, also. Some policies limit the ICU benefit to 3 times the regular room rate, when ICU can cost you 10 or 20 times the room rate each day.

A short hospital stay with a limit like this in your policy can cost you literally thousands of dollars. A long hospital stay with a limit like this in your policy could drive you into bankruptcy. Even if your policy says it takes over at 100% after $5,000 of covered medical bills, the important term here is "covered" medical bills. If the policy only pays three times the room rate for ICU, then the rest of the ICU bill is considered an "uncovered" charge!

5.) Pay the Insurance Company, Not the Agent, & Follow Up!:

And lastly, make your check payable to the Insurance Company, and then follow up to make sure it was received. When you get your policy, check the Schedule of Benefits to verify you got the coverage you ordered, and then check to see if any special Amendments were added to your policy to exclude any of your conditions. If an Amendment exists, these conditions will always be excluded from this policy, even after the

Pre-Existing Conditions Limitation expires.
With all these 5 items, they will help you which will protect you from catastrophic medical bills. Be sure to take the time to choose wisely when it comes to your health insurance!

What Happens If I lose My Job

The Consolidated Omnibus Budget Reconciliation Act(COBRA), a law created in 1986, gives workers (and members of their family) who lose their health insurance benefits the right continue their group health insurance for a limited period of time under circumstances such as voluntary or involuntary jobloss, reduction in hours, transition between jobs, divorce, adoption and death.

Generally, the employee pays up to 102% of the premium cost for the same policy; this is still usually less expensive than buying an individual insurance policy. There are three basic aspects for qualifying for COBRA: the qualifying event, the insurance plan coverage and the qualified person.

Each aspect is taken into consideration when applying for COBRA and you must elect to either apply for COBRA or waive your rights to COBRA within 14 days after aqualifying event.
You must also have been in the group insurance plan during your employment to be eligible. Although there are exceptions, generally you may continue to pay your own premiums to keep COBRA coverage intact for up to 18 months.

Companies who have fewer than 20 employees, State or Federal employers or employee organizations may not offer COBRA coverage. Check with your health insurance administrator to see if you may qualify. You may also have this informationreadily available in your group health insurance policy or in your company handbook.

Although it may be expensive, the cost of being able to keep your group insurance coverage rate may be well worth it.

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