What You Should Know Before Getting New Insurance

If you recently lost your health insurance because you lost your job or you changed jobs, you probably want to get new health insurance as soon as possible. Not only is it mandatory in some states, but you likely want to have peace of mind, especially with all that's going on in the world right now. Below we've outlined the top five things you should know if you need new insurance.

1. Health Insurance Terminology

If you haven't purchased health insurance for yourself before, you'll need to learn some of the lingo so that you can choose an insurance plan and provider that's best for you. Some of the terminology you might come across when searching for a health insurance plan includes:

• Deductible: A deductible is the amount you pay each year for healthcare services before your insurance company pays its portion.

• Out-of-Pocket Maximum: The out-of-pocket maximum is the cap on how much you'll have to pay each year toward costs such as your coinsurance, copay, and deductible.

• Premium: The premium is what you have to pay the health insurance company for having an active insurance plan.

• Coinsurance: The coinsurance is the amount you have to pay for medical expenses after you've met your deductible for the year.

• Copay: The co-pay is what you'll pay each time you receive certain medical services before the doctor can see you.

2. What Questions to Ask

Getting the right health insurance plan and provider means asking the right questions. Some of the questions you should ask include:

• What kind of plan is it?

• What are the restrictions on pre-existing conditions?

• How much will I have to pay out of pocket?

• Are routine exams covered?

• Can I stay with my current primary care doctor?

• How will you handle disputes over claims?

Questions like these can help you determine whether a provider is the right one for you. If they can't answer these questions to your liking, then it's best to move on and find a health insurance provider that can give you what you want and need.

3. What Type of Plan You Want or Need

Before you start looking at healthcare providers, it helps to know what kind of plan you want because it can save you time when it comes to comparing plans. There are several different types of healthcare plans you can choose from, including PPO, HMO, EPO, and POS. Below, you'll see exactly what each type of healthcare plan is and what it offers.

• Preferred Provider Organization (PPO): A PPO is a type of health plan that allows you to pay less if you use in-network providers. Medicare Advantage PPO plans are Part C plans that work like PPOs, but they give you the flexibility to work with any doctor or specialist in or out of network with no referral needed. Medicare Advantage PPOs are for anyone eligible for Medicare.

• Health Maintenance Organization (HMO): An HMO is a type of healthcare plan that limits coverage to care from doctors within that HMO network. You won't be covered for out-of-network care unless it's an emergency. HMOs are typically focused on prevention and wellness and offer integrated care.

• Exclusive Provider Organization (EPO): EPO plans are managed care plans that offer coverage only if you use certain hospitals, doctors, or specialists in the plan's network (excluding emergencies).

• Point of Service (POS): POS plans allows you to pay less if you use hospitals, doctors, and other healthcare professionals in your plan's network. These types of plans require a referral from a primary care physician if you want to see a specialist.

Choosing the Best Plan and Provider

Now that you've got some information about the basics of healthcare, you can feel assured that you can choose the best plan and provider for you. The above information can help you make an informed decision about your healthcare and give you an idea of what to expect when it comes to shopping for and getting the right health insurance.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes