7 Tips on Buying Individual Health Insurance

1. Take inventory of your current and future needs.

Make a list of what you want and need in a health plan. This is a serious decision, take some time and do the research. Be sure to buy from a company that is well funded and well known. You can get ratings for companies at Standard & Poor’s or Moody’s. Don't forget to check if their are any complaints. This information can be found at the National Association of Insurance Commissioners web site.

2. In order to get complete coverage, look at a comprehensive plan.

These types of plans cover all manner of the normal things you would expect. Things like, doctor visits, specialists, hospital stays, testing, medications and many more. These are the things most people need covered. If your situation calls for something specific like maternity than a limited plan may suffice. Just be aware that is all the limited plan will cover.

3. How much is the plan, and not just the premium.

Cost of the premium isn't the only factor you should consider. The deductible is a major factor as well. Plan ahead if you have a health problem arise how much are you comfortable paying out of pocket? A lower premium usually means as much higher out of pocket cost if something comes up and vice versa. If a plan has a co-insurance calculate how much you would have to contribute. Figure out when co-pays will be needed and how much coverage you will get for medications. There is a can be huge differences from program to program regarding medications. Don't be caught off guard at the pharmacy counter! Co-pays may count toward the overall deductible, so check for this as well.

4. Coverage limits will influence your decision.

Check to see how much coverage a company will give you in total. This is sometimes called annual or lifetime maximum. Make sure its in the millions, you never know when a serious illness may strike and could bankrupt you quickly. The plan should be in the millions of dollars. Take careful note of the limits on the number of tests and the duration of things like hospital stays. Know what to expect before a situation arises.

5. Preventive care...inquire about it.

You want to stay healthy and the insurance company you choose should value it as well. Make sure there are provisions for routine exams, ob-gyn, physicals, eye exams and the like.These should be provided for annually and cost no more than a co-pay. Once you have a plan that supplies them, use them! Get those annual check ups, there is no excuse not to once you have coverage. Besides you are paying for it, right?

6. Network, network, network!!!

If you already have a favorite doctor check and see if they are in the network for your plan. Because if they are not, your most likely overpaying, perhaps twice as much. This rule of network also goes for your medications. There may be several medications that you could take for any particular condition. Be sure the one your doctor assigns is covered by your plan BEFORE you go to the pharmacy, if you don't you could be in for a surprise at the counter. Ask if its on your formulary list. A plan may have a limit on doses as well, so be aware.

7. Get it in writing.

A policy needs to say what it will and will not cover very clearly. If you are looking through a plan and you don't see a certain procedure then the odds of it being covered are slim. It can be tedious and its cliche, but READ THE FINE PRINT.

Be sure to have this list handy when you are looking to buy individual health insurance.