Stay Smart with These Five Health Insurance Buying Tips

In 2016, it’s easier than ever to land a solid health insurance plan. It is, however, easy to miss the fine details of effective purchasing. Depending on your coverage, you’ll have several hidden advantages when browsing providers.

Keep in mind the five buying tips below. Check out 2016’s latest purchasing tricks.

Tip One: Avoid the Lowest Premium

Modern health insurance is straying away from the age-old low premiums govern all approaches. Too many buyers look at the monthly premium cost, rather than that considering co-pays—which are small, incremental costs. Annual deductibles, too, can cover major expenses far better than a low premium plan can. In general, you’re better off having enough savings to cover co-pay and coinsurance costs. Then, base your premium off of your remaining income.

Tip Two: Make Sure Your Employer-Sponsored Plan Meets Value Guidelines

Today, over 50 percent of Americans maintain work-sponsored coverage. If you’re one of them, make sure this coverage meets all minimum-value and affordability guidelines. Additionally, make sure your family can obtain cost assistance via the employer-sponsored plan. If in doubt, choose the cheapest employer-sponsored plan. Check out these tips provided via Obamacare Facts, too.

Tip Three: View Provider Satisfaction Online

Run your provider’s numbers, too. View their benefits, and match your plan’s needs with their online satisfaction rating. By viewing a provider’s customer satisfaction you can reduce poor provider choices.

Tip Four: Take a Look at Your Doctor Network

Understand which hospitals and doctors accept your new plan. Often, health plans will limit your coverage to preferred doctors. Today, out-of-network care is carrying better options for policyholders. It is still costlier than in-network care, however.

Tip Five: Opt for a Health Savings Account

Policies with high deductibles may make you eligible for a health savings account. A HAS lets you save money on a pre-determined, pre-tax basis. You can use the account on a tax-free basis to pay out-of-pocket medical expenses. Whenever you withdraw money for another option, you’ll pay around a 20-percent penalty. You can, however, withdraw everything else with zero penalties after age 65.

It's important to view health insurance as a long-term purchase. Consider your tax plans, and don’t stray away from expenses which may have a long-term payout. Be smart, be safe and discuss further options with your agent prior to purchasing.