Comparing major health insurance policies is critical to getting the best deal. The premiums will be very different from company to company, even for similar coverage!

Shop Safely & Save

Make sure that you’re shopping around for major medical health insurance policies at a trusted online quote site that will deliver your information to all the best in the business. Don’t just trust your personal information to any site out there – go to a large, unbiased site like insurancerates.com and avoid getting ripped off.
Lowest bidder isn’t always the cheapest.

If you’re comparing major medical health insurance policies, make sure that you’re not just going by the price you’ll pay every month.

When it comes to comparing major medical health insurance, there are a myriad of factors that you need to take into account. If you just click on the one that offers the lowest monthly premium and you wind up getting really sick, it could wind up being the most expensive of the bunch.

Deductibles

Unless this is your first venture into purchasing insurance – you’ve heard this before: The higher the deductible, the lower the premium.

A deductible is a set amount that you will pay out-of-pocket before the insurance company begins picking up the tab. So it makes complete sense that the more you take on (by getting a higher deductible), the less you’ll pay in a monthly premium.

Obviously, the savings you’ll see by opting for a high deductible should be weighed against the cost you’ll have down the line if you need health care. Ask yourself, how much can you truly afford to pay out of pocket?

Coinsurance

If you met your deductible, the insurance pays the rest right? Not so fast.

There’s a little thing called coinsurance that comes into effect even AFTER you’ve met your deductible.

Coinsurance is when you and the insurance company share (hence the “co”) the cost of health expenses.

When you’re comparing plans, you will see coinsurance displayed as two numbers separated by a backslash. For example, 80/20. The first number indicates the percentage of the bill that the insurance company will pay for and the second number represents the amount you will need to pay.

Coinsurance is a huge caveat to keep an eye on when comparing major medical health insurance plans.

The plans with a lower monthly premium will generally have a higher percentage you’ll be responsible for when it comes to coinsurance.

You might be asking yourself “So if I have open heart surgery and wind up with a $250,000 bill, I will have to pay for 20%?!”

Not necessarily. There is typically a maximum on out-of-pocket expenses. That means that once you’ve spend a certain amount of money in a calendar year, covered benefits will typically be paid in full by the insurance plan.

Most companies will pay 80% of the medical bill after the deductible up to an annual maximum of typically $5,000 to $10,000. Medical bills in excess of this annual maximum will be covered at 100% by the insurance company.

What you need to watch out for is companies that offer 50% co-insurance plans. It may mean a lower monthly premium now, but may actually cost you more in the long run.

Maximum Lifetime Benefit

Something else you might miss while comparing major medical health insurance policies. There is often a lifetime maximum on benefits covered by health insurance policies. This is a very important figure. If your covered medical bills exceed the given specific amount (not just in a year, over a lifetime) then that’s it, no more money will be paid out by the policy.

For this reason most experts recommend that you get a policy with a lifetime limit of AT LEAST $1 million dollars – preferably get a higher limit in order to fully cover yourself. A catastrophic illness such as cancer and all the follow-up care you will require can quickly eat through a maximum lifetime limit.

Comparing Major Health Insurance Policies: What’s Covered?

Once you’ve looked beyond the monthly premium and weighed deductibles, coinsurance, and maximum lifetime benefit – be sure to take a look at what types of health services the plan actually covers!

Are preventive care and prescription drug cost counted toward your deductible?

Also check out coverage differences for diagnostic tests, emergency treatment, extended hospital care, and home health care.

Is Having a Baby Anywhere on the Radar?

When comparing major health insurance policies, they don’t include maternity coverage. If you find a policy that does include it or you’re given the option of buying a separate maternity rider – be sure to find out if there’s a “wait to conceive” period. If there’s a waiting period before the policy will cover maternity care and you conceive before that – your pregnancy will not be covered.