It’s no surprise that choosing the right healthcare plan is becoming more complicated. When you need to ensure proper coverage for your entire family, you need to think about all aspects of your needs. While many workplaces offer plans that work for the whole family, how do you know you’re making the right choice?
When it comes to the health of your family, you need to be thorough. Not only is health insurance often difficult to understand, but it can be expensive if you’re not cautious. With some insurance programs charging increased surcharges for dependant or spouse coverage, you have to be extra careful you’re choosing a plan with the highest value for your family. With rising costs and regulations, this guide will address the way to choose the best healthcare strategy for your whole family.
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Know the Terms
The first step to choosing the right program is to understand the terminology. Coverage terms and conditions seem to be created in the most difficult to understand way. Let’s break down the different terms you’ll likely encounter when searching for plans.
Premiums
Premiums, usually monthly premiums, are the repeated cost of your plan. These premiums generally are increased depending on how many family members are covered under the plan. The average employee premium for family plans in America, before subsidized costs, is around $321 per month. If you choose an employer program, your employer will likely cover a percentage of your premium. There are usually different premium tiers depending on the amount of coverage you need.
Deductibles
Your deductible is the amount of money you have to spend before your coverage takes effect. In most cases, this is relatively low, and it might be a single cost per family, such as $150. After your deductible, you’ll owe a co-pay per office visit with your provider.
Out of Pocket Costs or Co-Pays
Co-pays are out of pocket costs are fees associated with your insurance program. This is how much you’ll be expected to pay for healthcare. Sometimes this will be a fixed fee like $50 per office visit while other plans might charge a percentage of the visit like 20%. Whether you choose coverage with high or low out of pocket expenses will depend on your anticipated needs.
Network
There is often a lot of confusion about in-network and out-of-network doctors under healthcare plans. Health plans usually offer better prices for doctors considered in-network. While you might still be able to visit an out-of-network facility, you can expect to pay more for this treatment. If you already have a provider you’d prefer to see, find coverage the includes this doctor in-network for the best coverage.
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Estimate Your Healthcare Needs
When you’re choosing the right insurance plan, you might be tempted to select the most affordable plan because that makes the most financial sense. While there’s nothing wrong with a lower-cost coverage, that might not be the right fit. The best way to determine plan fit is to estimate your health care needs before making a decision.
If you’ve had healthcare in the past for your family, you can start by looking at past plan usage. Did you meat your deductible or did you fall short? If you didn’t reach your deductible, you could probably get away with choosing a lower coverage for the next year. Choosing a higher deductible will save you on premiums.
What’s the Risk?
It’s no secret that unexpected health problems happen. You or your child might get sick or be caught in a sudden accident. You can’t prevent everything, but you can plan ahead. If you suffer a medical crisis, you could be left on the line for hundreds of thousands of dollars in medical bills. Lower coverage leaves you exposed to a financial crisis if you’re caught in an accident.
A potential solution to this risk is to contribute money to a health savings account or HSA. This is not only a tax-advantage, but it provides a safety net for unexpected medical expenses. Many employers will contribute to employees’ HSA accounts which can help mediate costs even further.
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The Final Decision
Ultimately, there is no one-size-fits-all when it comes to health insurance. You need to compare all of the affordable health insurance companies and estimate your expected costs to decide on the plan that’s right for your family. If you already know you’ll likely have high health costs, you should be careful with selecting a high deductible program that can leave you scrambling for funds. On the other hand, be wary of spending more than you need on health insurance. Consider alternatives like HSAs and employer contributions until you find a combination that works for you.