How to Choose Health Insurance: 5 Steps to Pick the Best Plan

But the health insurance world has changed significantly over the past few years. Obamacare introduced new rules about what health policies must cover, how and when they’re sold, and who must be accepted (insurers can no longer reject anyone or charge more because of their health). It also limited the amount insurers can charge older policyholders and introduced tax credits to help some people with the premiums. And even people who have coverage through their employer are experiencing many changes — with higher deductibles, more out-of-pocket costs, less-generous coverage for prescription drugs, and shrinking networks of doctors and hospitals.

Assess the Flexibility of the Policy

• Most people look at costs and star ratings to find a health insurance company that is both high quality and affordable.
• If you’re signing up for an employer-sponsored plan or Medicare, the deadlines will be different, but probably also in the fall.
• Lower out-of-pocket costs and usually no required referrals, but less freedom to choose providers.
• Think of what would happen if you didn’t have insurance and someone in your family suffered a serious illness requiring a long hospital stay or expensive prescription drugs.
• If you would rather see specialists without a referral, you might be happier with an EPO or a PPO.
• If you’re basically healthy and picking from one or two plan options through your job, the choice may be pretty simple.

Until recently, it could be difficult to shop for the best price for care, especially because each insurer negotiates a different rate with health care providers. Employers are improving their tools to help you understand the cost of your health care choices. They’re also offering more support when researching your care options. For example, 85% plan to offer nurse coaching, and 71% plan to offer self-service decision support tools to help you choose the type of care you need.

tips to help you pick the right health insurance plan

UnitedHealthcare, for example, sold policies on four exchanges but plans to sell on as many as 24 for 2015; Cigna is entering three more states. For marketplace plans, you may also qualify for a premium tax credit to help with the costs of health insurance, regardless of the plan tier. If you don’t have access to health insurance through a job — or the plan that’s offered isn’t affordable — you can purchase coverage from the federal or state marketplace, depending on where you live. Start at HealthCare.gov and choose your state to determine where you’ll shop. Health insurance plans will have a list of in-network doctors and hospitals.

What’s the biggest mistake you can make when choosing health insurance?

Although you have until February 15 to switch policies for 2015, you picking the best health insurance for 2015 only have until December 15 if you want your new coverage to kick in on January 1. If you buy health insurance on your own, you have from November 15, 2014, to February 15, 2015, to pick your plan for 2015. For the second year, insurers can no longer reject you or charge you higher rates because of a preexisting condition, and premiums for older people are capped.

Why does the network matter?

If you do, make sure they’re included in the network related to whichever plan or plans you are considering. If you still want to go with one of these companies, you should conduct extensive research and background checks on them to make sure they are trustworthy. Try, if you can, to interact with their existing customers and speak with the company agents.

• If you aren’t too tied to certain doctors and hospitals, a lower-cost, narrow-network plan may work for you.
• If you do, you’ll want to make sure whichever marketplace or exchange plan you purchase covers them, especially if it would be difficult for you to pay for them on your own.
• And even people who have coverage through their employer are experiencing many changes — with higher deductibles, more out-of-pocket costs, less-generous coverage for prescription drugs, and shrinking networks of doctors and hospitals.
• Choose a plan that gives you convenient access to medical care, including any specialists you regularly see.
• All content and services provided on or through this site are provided “as is” and “as available” for use.
• “If you had a bronze plan and are anticipating surgery in 2015, you may want to go to a gold plan, but then move back to the bronze plan the following year,” says Wayne Sakamoto, a health insurance broker in Naples, Fla.

How you shop for health insurance will depend on what’s available to you. Whether you get coverage through your employer or buy it on your own, use our strategies to make smarter choices during open enrollment. QuoteWizard.com LLC has made every effort to ensure that the information on this site is correct, but we cannot guarantee that it is free of inaccuracies, errors, or omissions.

In Missouri, for example, the number of insurers selling on the state exchange is rising from three in 2014 to eight in 2015. New Hampshire, which had only one company selling on the exchange in 2014, will have five insurers in 2015. United Healthcare, for example, sold on only four state exchanges in 2014 but will be selling on 23 exchanges in 2015. Profit and prosper with the best of Kiplinger’s advice on investing, taxes, retirement, personal finance and much more.