You now are the proud owner of a health insurance policy through your place of employment, but you have no clue what anything in it means. You start reviewing the policy and it gets more confusing as each word is read. This happens too often to a lot of people and it shouldn’t. Insurance policies for the most part are simple to understand if you know the language they speak. Now if you don’t that’s another story. Let’s get started and see if we can help you make sense of your new health insurance policy.
The first things you want to understand are the many terms that are in your policy. One of the common terms that you will see a lot and deal with a lot is a deductible. A deductible is what you would have to pay before any benefits in your health insurance policy would be accessible. Usually this is an annual amount and will vary greatly by the underwriters of the policy. Most of the time there are separate deductibles for an individual account and a family account. Some policies will let you use some of their services with out meeting the deductible. Once you meet your deductible then you’re done for that calendar year. The following year though you have to start all over again.
Co-insurance, or co-payments which they are sometimes called, are amounts that are paid by the insured before the insurance will pay and this is in addition to the deductibles. Some policies let you pay a co-payment for certain services without meeting the deductible.
Out of Pocket is what you will have to pay out of your own pocket. This could include your deductibles, co-insurance, and your co-payments. If you hear the term “annual out of pocket expense” this is the maximum out of your own pocket you would have to pay for the services minus the premiums, which are due no matter what.
Most every policy that you get especially health insurance policies have a lifetime maximum term. What this means that your policy basically has a cap on it. During the lifetime you can’t go over a predetermined amount or the health insurance won’t pay after the set amount. Now don’t get worried it’s usually a very high figure but with today’s rapid escalating health care costs you can reach it fairly quickly.
Exclusions will be one section that you must read very carefully and fully understand in your health insurance policy. Exclusions are things the policy will not cover and this can be a very gray area. The policy could cover operations but not after care or cover after care and not the operation. This is one of the most important sections of your policy so read it and reread it over a lot to make sure you grasp all of the contents and what it covers and what it doesn’t cover.
Pre-existing conditions is one of the things you will want to know about. Pre-existing basically means it was a condition you already have and been treated for which the policy will not cover it or pay for any work done for that pre-existing condition. Some health insurance policies will cover pre-existing where others won’t which is why knowing what is in your policy is very important.
Waiting period is usually the time you will have to wait for your health insurance policy to become effective. Most policies do have a waiting period and the benefits aren’t available until you have met the waiting period requirements. Different companies have different policies so check with your insurance company so you will know the rules for your policy.
Grace period is the amount of time that is given for one to pay their health insurance premium after the original due date has passed.
There are many things that you should always remember as you look over your health insurance policy. Read each and every paragraph and make sure you understand how the whole policy works so you will never be in the dark or have any questions about what is covered and what isn’t. Remember that it is okay to ask questions!
Workman’s Compensation: Who Pays for It
Workman’s compensation insurance, also known as “workman’s comp”, is a state-mandated insurance program designed to protect workers who have been injured on the job or rendered ill because of workplace conditions. All companies, with a few exceptions, are required to maintain this type of insurance coverage no matter where they are located – all 50 U.S. states require it. Although some details of workman’s compensation coverage may differ slightly from state to state, the basics are fairly uniform.
Workman’s compensation insurance typically consists of two parts: compensation for the worker and employer’s liability coverage. The first covers the injured worker’s medical bills, rehabilitation costs, lost wages and most other costs directly related to the injury, even if the injury was the employee’s fault. Employer’s liability, on the other hand, covers the employer’s legal costs should an employee bring suit against the business.
The location and size of the business will determine what sort of workman’s compensation policy an employer must carry. Most states allow employers to purchase their plans through a traditional insurance company. There are some states, however, that require the insurance be purchased exclusively through programs run by the state itself. North Dakota, Ohio, Washington, West Virginia and Wyoming all require the use of state-run workman’s compensation programs. Puerto Rico and the U.S. Virgin Islands require this type of plan as well. Not all states that provide a state-run plan, however, demand that the companies within their jurisdiction use it exclusively. Arizona, California, Colorado, Idaho, Maryland, Michigan, Minnesota, Montana, New York, Oklahoma, Oregon, Pennsylvania and Utah all sponsor workman’s compensation plans that compete with programs in the private sector.
In some U.S. states, a company that is big enough and reputable enough may create its own workman’s compensation fund, without having to go through either the state or a private insurance carrier. The states that allow this option are: Arizona, California, Colorado, Hawaii, Idaho, Kentucky, Louisiana, Maine, Maryland, Minnesota, Missouri, Montana, New Mexico, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas and Utah. Any company that is self-insured in this manner, however, must be authorized by the state.
Cost to the Employer
No matter where the coverage comes from, workman’s compensation insurance is expensive for an employer. Indeed, American businesses pay over $100 billion in premiums each year. The coverage is wholly paid for by the employer, who is prohibited from passing any portion of the expense on to his or her employees.
The cost of workman’s compensation insurance is dependent upon many factors. One important factor has to do with the classification of employees. Some employees are more expensive to cover than others because their jobs are considered more hazardous. For example, it costs more to cover a roofer than it does to cover a secretary because the roofer’s job duties require more potentially risky behavior.
Two other important factors that determine the rise or fall of workman’s compensation premiums are: the existence and implementation of a company’s safety programs and its history of accident and injury. If an employer shows a concern for workplace safety and can prove that concern by keeping accidents down to a minimum, then the likelihood of a rise in premium rates is minimal.
Keeping Costs Down
There are many ways in which an employer can make sure that he or she is getting the lowest workman’s compensation premium rate possible. The easiest way is for the employer to make sure that all workers are classified correctly. The premium rate for each classification is different – depending on the risk associated with it – and even the slightest error in classification can cost an employer dearly. For example, keyboard use is considered a somewhat risky behavior because of the possibility of developing carpal tunnel syndrome. If an office worker who does not use a keyboard is mistakenly classified as one who does, then the employer could be paying an unnecessary premium.
Another method of keeping workman’s compensation premium costs down is for the employer to institute safety programs, seminars and workshops. Very few employees purposefully injure themselves in order to obtain benefits. Sometimes workplace injuries are simply the result of an unaware and uneducated workforce. So, if an employer’s concern for workplace safety is evident and ever-present (posters, signs, announcements, etc.), safety issues are more likely to remain on the minds of the employees and accidents are less likely to occur – fewer accidents man lower premiums. An employer’s overt preoccupation with safety also lets the insurance carrier know that he or she is doing everything possible to enforce employee safety. This often leads to lower premium rates as well.
Workman’s compensation insurance typically consists of two parts: compensation for the worker and employer’s liability coverage. The first covers the injured worker’s medical bills, rehabilitation costs, lost wages and most other costs directly related to the injury, even if the injury was the employee’s fault. Employer’s liability, on the other hand, covers the employer’s legal costs should an employee bring suit against the business.
The location and size of the business will determine what sort of workman’s compensation policy an employer must carry. Most states allow employers to purchase their plans through a traditional insurance company. There are some states, however, that require the insurance be purchased exclusively through programs run by the state itself. North Dakota, Ohio, Washington, West Virginia and Wyoming all require the use of state-run workman’s compensation programs. Puerto Rico and the U.S. Virgin Islands require this type of plan as well. Not all states that provide a state-run plan, however, demand that the companies within their jurisdiction use it exclusively. Arizona, California, Colorado, Idaho, Maryland, Michigan, Minnesota, Montana, New York, Oklahoma, Oregon, Pennsylvania and Utah all sponsor workman’s compensation plans that compete with programs in the private sector.
In some U.S. states, a company that is big enough and reputable enough may create its own workman’s compensation fund, without having to go through either the state or a private insurance carrier. The states that allow this option are: Arizona, California, Colorado, Hawaii, Idaho, Kentucky, Louisiana, Maine, Maryland, Minnesota, Missouri, Montana, New Mexico, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Texas and Utah. Any company that is self-insured in this manner, however, must be authorized by the state.
Cost to the Employer
No matter where the coverage comes from, workman’s compensation insurance is expensive for an employer. Indeed, American businesses pay over $100 billion in premiums each year. The coverage is wholly paid for by the employer, who is prohibited from passing any portion of the expense on to his or her employees.
The cost of workman’s compensation insurance is dependent upon many factors. One important factor has to do with the classification of employees. Some employees are more expensive to cover than others because their jobs are considered more hazardous. For example, it costs more to cover a roofer than it does to cover a secretary because the roofer’s job duties require more potentially risky behavior.
Two other important factors that determine the rise or fall of workman’s compensation premiums are: the existence and implementation of a company’s safety programs and its history of accident and injury. If an employer shows a concern for workplace safety and can prove that concern by keeping accidents down to a minimum, then the likelihood of a rise in premium rates is minimal.
Keeping Costs Down
There are many ways in which an employer can make sure that he or she is getting the lowest workman’s compensation premium rate possible. The easiest way is for the employer to make sure that all workers are classified correctly. The premium rate for each classification is different – depending on the risk associated with it – and even the slightest error in classification can cost an employer dearly. For example, keyboard use is considered a somewhat risky behavior because of the possibility of developing carpal tunnel syndrome. If an office worker who does not use a keyboard is mistakenly classified as one who does, then the employer could be paying an unnecessary premium.
Another method of keeping workman’s compensation premium costs down is for the employer to institute safety programs, seminars and workshops. Very few employees purposefully injure themselves in order to obtain benefits. Sometimes workplace injuries are simply the result of an unaware and uneducated workforce. So, if an employer’s concern for workplace safety is evident and ever-present (posters, signs, announcements, etc.), safety issues are more likely to remain on the minds of the employees and accidents are less likely to occur – fewer accidents man lower premiums. An employer’s overt preoccupation with safety also lets the insurance carrier know that he or she is doing everything possible to enforce employee safety. This often leads to lower premium rates as well.
Health Insurance: is it worth the gamble
Unlike in Canada and parts of Europe where the bulk of health care costs are put on a government tab, most able-bodied, mentally sound Americans under the age of 65 must generally rely on themselves to manage personal health care funding. For most Americans, that means incorporating some kind of health insurance into their overall personal financial strategy.
Over time, however, the costs of health care insurance add up, and the total spent can be staggering. So should you have health insurance? Is it worth the gamble? There is no single answer to these questions, of course, but there are several items you should consider before making a decision one way or the other about your health care insurance future.
First of all, about 44 million Americans do not have any health insurance coverage. Many of these people are members of poor families who do not qualify for Medicaid, employment-based health insurance and who cannot afford, or who have been refused for, individual coverage. If you are looking to purchase individual health care insurance coverage, be aware that the costs tend to be higher than employer-sponsored plans and the plans less user-friendly.
With so many types and ranges of personal or individual private health care insurance available, it can be confusing as to what kind of health insurance you should buy, and how much coverage you should have. You may not think you need several hundred thousand dollars worth of coverage, but consider how much one hospital visit costs if you need a serious (yet common) procedure like a heart bypass or even minor surgery to remove a gall bladder or appendix. Even slight complications can result in an enormous bill.
If you receive a health benefits package as part of your employment, you will be accepted under the company’s plan regardless of your health status. However, when you apply for individual coverage, there are no such guarantees and you many not be able to secure the coverage you need, even with reduced benefits. The same is true when it comes to renewing your health care insurance. If you are employed and are covered under your company plan, you can renew your coverage as necessary, even if you are sick. With most individual plans, there is no guarantee your policy will not be cancelled.
Similarly, there are differences between job-based and individual-based insurance when it comes to limitations and portability. If you have had a pre-existing condition when you apply for job-based medical coverage, there is a limit of about a year to a year and a half on what can be counted ‘against’ you. With individual coverage, limitations are prescribed by the state, and vary greatly state-to-state, but generally, you may not be eligible for coverage of costs related to a pre-existing medical condition for the entire duration of your policy.
When it comes to portability, again, depending on the state in which you reside, it is possible that you may receive no credit for past coverage. That means even if you are lucky enough to qualify for health insurance coverage, you could end up waiting for the entire pre-existing condition exclusion period.
Whether you choose job-based, employer-sponsored health insurance or a private, individual plan, health care insurance is going to cost you a lot of money, especially if you have a family or if you have any ongoing medical issues. The exact amount depends on your particular situation needs. You may never need medical attention, and in that case, you might consider the money spent on health care insurance wasted.
However, most of us need medical attention at some time or another. Even healthy, positive lifestyle-oriented people have unexpected health events, car accidents and broken bones. You can’t anticipate when these events will happen, or how severe they will be, but without significant financial means or a decent health care insurance plan, you could end up financially devastated. Are you willing to make that gamble? To assume the risk of not being able to pay for medical services or products that you or a member of your family needs? Money spent on premiums is certainly a consideration when deciding whether to purchase health care insurance, but there are other priceless things to consider before you make a final decision.
Over time, however, the costs of health care insurance add up, and the total spent can be staggering. So should you have health insurance? Is it worth the gamble? There is no single answer to these questions, of course, but there are several items you should consider before making a decision one way or the other about your health care insurance future.
First of all, about 44 million Americans do not have any health insurance coverage. Many of these people are members of poor families who do not qualify for Medicaid, employment-based health insurance and who cannot afford, or who have been refused for, individual coverage. If you are looking to purchase individual health care insurance coverage, be aware that the costs tend to be higher than employer-sponsored plans and the plans less user-friendly.
With so many types and ranges of personal or individual private health care insurance available, it can be confusing as to what kind of health insurance you should buy, and how much coverage you should have. You may not think you need several hundred thousand dollars worth of coverage, but consider how much one hospital visit costs if you need a serious (yet common) procedure like a heart bypass or even minor surgery to remove a gall bladder or appendix. Even slight complications can result in an enormous bill.
If you receive a health benefits package as part of your employment, you will be accepted under the company’s plan regardless of your health status. However, when you apply for individual coverage, there are no such guarantees and you many not be able to secure the coverage you need, even with reduced benefits. The same is true when it comes to renewing your health care insurance. If you are employed and are covered under your company plan, you can renew your coverage as necessary, even if you are sick. With most individual plans, there is no guarantee your policy will not be cancelled.
Similarly, there are differences between job-based and individual-based insurance when it comes to limitations and portability. If you have had a pre-existing condition when you apply for job-based medical coverage, there is a limit of about a year to a year and a half on what can be counted ‘against’ you. With individual coverage, limitations are prescribed by the state, and vary greatly state-to-state, but generally, you may not be eligible for coverage of costs related to a pre-existing medical condition for the entire duration of your policy.
When it comes to portability, again, depending on the state in which you reside, it is possible that you may receive no credit for past coverage. That means even if you are lucky enough to qualify for health insurance coverage, you could end up waiting for the entire pre-existing condition exclusion period.
Whether you choose job-based, employer-sponsored health insurance or a private, individual plan, health care insurance is going to cost you a lot of money, especially if you have a family or if you have any ongoing medical issues. The exact amount depends on your particular situation needs. You may never need medical attention, and in that case, you might consider the money spent on health care insurance wasted.
However, most of us need medical attention at some time or another. Even healthy, positive lifestyle-oriented people have unexpected health events, car accidents and broken bones. You can’t anticipate when these events will happen, or how severe they will be, but without significant financial means or a decent health care insurance plan, you could end up financially devastated. Are you willing to make that gamble? To assume the risk of not being able to pay for medical services or products that you or a member of your family needs? Money spent on premiums is certainly a consideration when deciding whether to purchase health care insurance, but there are other priceless things to consider before you make a final decision.
Antique Insurance for Your “Old Auto”
If your classic or antique automobile is covered under a traditional auto insurance policy, then you may be wasting your money. Most people who know they have a classic or vintage vehicle don’t use that vehicle as they would their “everyday car”, and the insurance carried for it should take that into account. You’re much better off acquiring an insurance policy that is designed especially for the older car. You’ll be giving your car the coverage it needs and might even save on premiums in the process.
Old Cars vs. Classic Cars
So, what makes a vehicle antique, classic or just plain old? Each insurance company has its own definitions; but, in general, a classic car is one that is anywhere from 15 to 30 years old. It must also have some value on the collector’s market, be in good overall condition and not be used for commuting or any commercial endeavor.
A vehicle that is deemed to be “antique” is more than 25-30 years old and is only used for show purposes. Antique vehicles are usually outfitted with some sort of historic license plate as well. They can be driven, of course, but only in association with a show. An older vehicle that does not meet the criteria for either the “classic” or “antique” classifications is considered to be simply an “old car” and if used at all, must be covered under a traditional auto insurance policy.
Why the difference in automobile classifications so important? There are many specialty auto insurance companies that deal exclusively with collectable vehicles. If your car or truck is “antique” or “classic”, then you may qualify for insurance rates that are lower than traditional auto policies.
The Antique or Classic Car Appraisal
If you want your car insured for any amount greater than its book value, you may have to get an appraisal done (appraisals also come in handy in cases of divorce or estate planning). In the course of an official appraisal the car is properly categorized, its condition is documented and a list of comparable vehicles (along with their values) is made.
Choosing the right appraiser is very important. The person you choose to evaluate your vehicle should be knowledgeable about similar makes and model, should provide references and should make his or her résumé available to you. If you have trouble finding a qualified appraiser on your own, check with the American Society of Appraisers (ASA). The ASA will at least be able to point you toward the most helpful resources.
In order for the automobile to be properly insured, it must be properly categorized. Information such as body style, make, color, model, year and Vehicle Identification Number (VIN) or engine number are all noted. For some vehicles (i.e. Corvettes and Ferraris), the VIN is needed in order to verify authenticity.
Proper consideration of the vehicle’s condition is very important when appraising its value. The appraiser will need to thoroughly examine the vehicle, run it if possible and document the condition in a detailed written report. The appraiser will also record the vehicle’s condition through the use of photographs.
In order to add additional validity to the appraised value of the vehicle, the appraiser will also include in his or her report a list of comparable vehicles and their prices. This information can come from sale and auction results, vehicle price guides, advertisements and any other printed material that documents a similar vehicle’s market worth.
Insurance for the Antique or Classic Car
Obtaining insurance specifically designed for classic cars is very important. The correct policy will provide just the right amount of coverage for your vehicle. Furthermore, agencies that specialize in vehicles like yours are more likely to understand your special needs and concerns.
There are three types of insurance coverage for classic or antique cars, all of which are substantially less expensive than standard auto insurance: actual cash value, stated value and agreed value. Actual cash value (ACV) sets a value for the vehicle at the time coverage is obtained; and, as the vehicle ages, the ACV decreases. If a claim is made, the insurance adjuster is the one who sets the final ACV. In case of a claim, stated value coverage (SV) pays either the stated value of the vehicle, the cost to repair the vehicle or the ACV, whichever is less. Agreed value coverage (AV) is the most recommended type of coverage for an antique or classic vehicle. AV guarantees a set amount of coverage (set at the time the policy is purchased) should a claim arise.
Old Cars vs. Classic Cars
So, what makes a vehicle antique, classic or just plain old? Each insurance company has its own definitions; but, in general, a classic car is one that is anywhere from 15 to 30 years old. It must also have some value on the collector’s market, be in good overall condition and not be used for commuting or any commercial endeavor.
A vehicle that is deemed to be “antique” is more than 25-30 years old and is only used for show purposes. Antique vehicles are usually outfitted with some sort of historic license plate as well. They can be driven, of course, but only in association with a show. An older vehicle that does not meet the criteria for either the “classic” or “antique” classifications is considered to be simply an “old car” and if used at all, must be covered under a traditional auto insurance policy.
Why the difference in automobile classifications so important? There are many specialty auto insurance companies that deal exclusively with collectable vehicles. If your car or truck is “antique” or “classic”, then you may qualify for insurance rates that are lower than traditional auto policies.
The Antique or Classic Car Appraisal
If you want your car insured for any amount greater than its book value, you may have to get an appraisal done (appraisals also come in handy in cases of divorce or estate planning). In the course of an official appraisal the car is properly categorized, its condition is documented and a list of comparable vehicles (along with their values) is made.
Choosing the right appraiser is very important. The person you choose to evaluate your vehicle should be knowledgeable about similar makes and model, should provide references and should make his or her résumé available to you. If you have trouble finding a qualified appraiser on your own, check with the American Society of Appraisers (ASA). The ASA will at least be able to point you toward the most helpful resources.
In order for the automobile to be properly insured, it must be properly categorized. Information such as body style, make, color, model, year and Vehicle Identification Number (VIN) or engine number are all noted. For some vehicles (i.e. Corvettes and Ferraris), the VIN is needed in order to verify authenticity.
Proper consideration of the vehicle’s condition is very important when appraising its value. The appraiser will need to thoroughly examine the vehicle, run it if possible and document the condition in a detailed written report. The appraiser will also record the vehicle’s condition through the use of photographs.
In order to add additional validity to the appraised value of the vehicle, the appraiser will also include in his or her report a list of comparable vehicles and their prices. This information can come from sale and auction results, vehicle price guides, advertisements and any other printed material that documents a similar vehicle’s market worth.
Insurance for the Antique or Classic Car
Obtaining insurance specifically designed for classic cars is very important. The correct policy will provide just the right amount of coverage for your vehicle. Furthermore, agencies that specialize in vehicles like yours are more likely to understand your special needs and concerns.
There are three types of insurance coverage for classic or antique cars, all of which are substantially less expensive than standard auto insurance: actual cash value, stated value and agreed value. Actual cash value (ACV) sets a value for the vehicle at the time coverage is obtained; and, as the vehicle ages, the ACV decreases. If a claim is made, the insurance adjuster is the one who sets the final ACV. In case of a claim, stated value coverage (SV) pays either the stated value of the vehicle, the cost to repair the vehicle or the ACV, whichever is less. Agreed value coverage (AV) is the most recommended type of coverage for an antique or classic vehicle. AV guarantees a set amount of coverage (set at the time the policy is purchased) should a claim arise.
10 Things to Consider When Choosing an Insurance Company
We don’t think of it too often; as a matter of fact, unless we are faced with a health crisis or need, we don’t think about health insurance at all! It is no wonder that many of us are caught unawares when an emergency happens, and some of us suddenly realize that the insurance coverage we had ten years ago is woefully out of date for our current needs. While purchasing insurance can be a daunting task in itself, please remember that any plan is only as good as the company that underwrites and stands behind it. To this end, here are ten things to consider before choosing your next insurance company:
1. Full Disclosure
When purchasing an individual health insurance policy, the underwriter will look at your medical history. Prior to comparing rates, be sure to write down all pertinent information, so you will be able to compare apples to apples. Additionally, it will give you a feel for what kind of information raises red flags for insurance companies. If you suddenly deal with a company that does not bat an eyelash at your skydiving accident that happened just last month, you will need to ask a few more questions to make sure the rates don’t suddenly change after you sign on.
2. Pre-Existing Conditions
Most companies will not insure pre-existing conditions; others will do so after a sometimes lengthy waiting period. Still others are legally mandated to carry "guaranteed issue" policies. Prior to signing on with a company, get a detailed list of what is considered a pre-existing condition, the exclusionary period, and also what kind of coverage will be provided one the exclusion ends.
3. Interview An Agent
A licensed, independent insurance agent is a goldmine of information and industry gossip. Furthermore, the agent will be able to share feedback received from other clients about a given health insurance company, insurance products, and even customer service.
4. What Does The Future Hold?
When picking an insurance company it is imperative that its products and coverages can grow with you and your changing needs. Thus, a company that specializes in catastrophic coverage only will be of little use once you have children in the house.
5. Have It Your Way!
Since you will have to live with the health plan of your choosing, it is imperative that it will work for and with you. Therefore, you should think through your wants and needs when it comes to coverage. For example, how important is it to you to pick your own doctors? If it does not really matter to do, then an HMO may be a cost-saving choice. On the other hand, if you have a favorite doctor and wish to continue consulting this physician rather than picking someone else, you may wish to consider the pricier PPO.
6. Add-Ons
Some companies will bundle their products with other coverages, such as short- and long-term disability, prescription drug coverage, dental and vision coverage. If these are important to you, you should make sure the insurance company you wish to do business with will offer them.
7. Out Of Pocket Expenses?
Take the time to look at the fine print. For example, how much are the co-pays? Is there an annual cap on the co-pays? Do these caps pertain to a calendar year or any 365-day period? In addition to co-pays, what is the percentage of coverage?
8. Accessibility
An insurance company should be easy to get a hold of, should have extended office hours, and naturally also a toll-free number. Give the company a call and get a feel for average hold times, times of operation, and also services offered via telephone.
9. Rating
Check out the insurance company’s rating with the Better Business Bureau. A company that has too many unanswered complaints does not need your business!
10. Rate Increases
Talk to friends and neighbors who are insured with the company you are choosing, or if you are working with an agent, seek to find out how often the insurance companies has raised its rates in the last two years. This will be a fair measure of the possible rate changes that will await you once you sign on!
1. Full Disclosure
When purchasing an individual health insurance policy, the underwriter will look at your medical history. Prior to comparing rates, be sure to write down all pertinent information, so you will be able to compare apples to apples. Additionally, it will give you a feel for what kind of information raises red flags for insurance companies. If you suddenly deal with a company that does not bat an eyelash at your skydiving accident that happened just last month, you will need to ask a few more questions to make sure the rates don’t suddenly change after you sign on.
2. Pre-Existing Conditions
Most companies will not insure pre-existing conditions; others will do so after a sometimes lengthy waiting period. Still others are legally mandated to carry "guaranteed issue" policies. Prior to signing on with a company, get a detailed list of what is considered a pre-existing condition, the exclusionary period, and also what kind of coverage will be provided one the exclusion ends.
3. Interview An Agent
A licensed, independent insurance agent is a goldmine of information and industry gossip. Furthermore, the agent will be able to share feedback received from other clients about a given health insurance company, insurance products, and even customer service.
4. What Does The Future Hold?
When picking an insurance company it is imperative that its products and coverages can grow with you and your changing needs. Thus, a company that specializes in catastrophic coverage only will be of little use once you have children in the house.
5. Have It Your Way!
Since you will have to live with the health plan of your choosing, it is imperative that it will work for and with you. Therefore, you should think through your wants and needs when it comes to coverage. For example, how important is it to you to pick your own doctors? If it does not really matter to do, then an HMO may be a cost-saving choice. On the other hand, if you have a favorite doctor and wish to continue consulting this physician rather than picking someone else, you may wish to consider the pricier PPO.
6. Add-Ons
Some companies will bundle their products with other coverages, such as short- and long-term disability, prescription drug coverage, dental and vision coverage. If these are important to you, you should make sure the insurance company you wish to do business with will offer them.
7. Out Of Pocket Expenses?
Take the time to look at the fine print. For example, how much are the co-pays? Is there an annual cap on the co-pays? Do these caps pertain to a calendar year or any 365-day period? In addition to co-pays, what is the percentage of coverage?
8. Accessibility
An insurance company should be easy to get a hold of, should have extended office hours, and naturally also a toll-free number. Give the company a call and get a feel for average hold times, times of operation, and also services offered via telephone.
9. Rating
Check out the insurance company’s rating with the Better Business Bureau. A company that has too many unanswered complaints does not need your business!
10. Rate Increases
Talk to friends and neighbors who are insured with the company you are choosing, or if you are working with an agent, seek to find out how often the insurance companies has raised its rates in the last two years. This will be a fair measure of the possible rate changes that will await you once you sign on!
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