Picking a Plan!
Updated: Sep 20
Health Insurance is a necessity for all people, but it becomes increasingly important as we age. As you have spouses and children, you have to be much more careful with your coverage. Different stages of life bring about different healthcare needs. Because of this, there are several options to choose from and a lot of choices to consider.
I was speaking with a young man who was going through the process of switching from his parents’ health insurance to his employer’s, as he was turning 26. He was overwhelmed with the entire experience, especially because it kind of sneaks up on you. Before you know it, you need to be submitting applications or selecting a plan with your employer to ensure there is no gap in your coverage. Life gets busy with work and personal obligations, but selecting a health insurance plan should be at the top of your list.
This young man was worried about making the right decision. He said numerous times, “How do I know if I will need that in the future or not?” This is something we often wonder about health savings plans or catastrophic coverage. This made me realize that this is not a well-covered topic in the media and resources are slim. We expect young people to know what all of the terminologies mean and how to make responsible decisions. This conversation urged me to research all the options and break them down. This article will focus mainly on the process of choosing a healthcare plan from your employer.
Choosing a Plan
Firstly, there are fees for service plans. These plans are a basic form of insurance and what some refer to as “traditional”. This is where the healthcare provider will pay the doctor or hospital, or you will be reimbursed after making a claim. This type is popular for people with no chronic illnesses or those that aren’t frequently going to the doctor. Generally, it tends to be more expensive. On the other hand, there is a PPO (preferred provider plan) that involves the insurance company partnering with the medical care providers. This is recommended, as you will pay less and are a part of a medical care network where your insurance is accepted.
Lastly, there is the HMO option, which stands for health maintenance organizations. Unlike a PPO, you are given a select list of providers you are able to go to. It will lower costs but can be inconvenient. A lot goes into making the choice. Evaluate your healthcare needs and determine what you value in a medical provider. Consult your company’s benefits specialist or seek advice from an insurance agent if you are really unsure.
In conclusion, there are several options to choose from, and rather than being overwhelmed by options, view it as an opportunity. It is an opportunity to take control of your healthcare and customize it to your specific needs. Make sure to use Insuravita to help you compare your options and learn about the road to healthcare. If you have questions about healthcare, we have additional articles about Health Insurance FAQs and open enrollment. Be on the lookout!