With all the complicated numbers and lingo, most Americans find themselves asking themselves, how do you find the right health insurance plan for your budget? Due to this common lack of understanding, many people wind up selecting a plan that is not actually best for them, ultimately spending more money than they need to. With the right knowledge and guidance, you can avoid this mistake and select the right insurance plan for your budget.
A basic lack of understanding leads many Americans to select a health insurance plan that leaves them spending unnecessary amounts of money. You should choose a health insurance plan based on your health risk and willingness to take on financial risks, as well as whether the doctors you need are in network; remember to revisit your options every year, as things change over time. An expert can help you shop around both traditional and non-traditional plans to make absolutely sure you are on the right health insurance plan for your budget and medical needs.
Most Americans struggle with selecting the right health insurance plan
If you are like many Americans, the thought of searching for the right health insurance plan may fill you with a sense of dread. With all the strange technical lingo and numbers flying around, it is easy to become totally overwhelmed by information overload. The average citizen’s general lack of understanding of how insurance plans really work causes them to get lost in this blizzard of information, leaving them with an inaccurate idea of what they are signing up for, and ultimately choosing an insurance plan that doesn’t actually suit them.
This basic lack of understanding is astonishingly common. In fact, a survey found that only a third of Americans asked could properly identify premiums and deductibles, which are essentially the most basic terms used in the world of insurance (for the record, a “premium” is the minimum you will have to pay for your plan each month, whether or not you receive medical care, and a “deductible” is how much you will have to pay out of pocket at the beginning of each year in order for your insurance plan to take effect). With a product as simultaneously complicated and important as health insurance, and with health insurance costs on the rise, it is not unclear why so many Americans (around 61%) end up overpaying for plans that aren’t even right for them.
How to choose the right health insurance plan for your budget
Oftentimes, people falsely equate a higher price with a higher quality product and simply decide to spend as much as they can for a plan. When it comes to health insurance, a higher price does not necessarily equate to a plan that works best for your specific situation. The selection of a health insurance plan should be based on your health risk and willingness to take on financial risks. It’s what’s in the details that really matters, not how much it costs.
This is why it is important to break out a calculator and do some math. Your decision should be informed by how much healthcare you will actually need over the course of the year. This will give you a much more accurate idea of how much money you will realistically end up spending. Additionally, if you have a selection of doctors you like or even absolutely must see, you need to make sure they are all in your network. Doctors may be in a network one year and out of it the next, so make sure you are updated and take that information into consideration. The plans themselves can also change over time, so it is important to revisit your options every year to be certain that the plan you are on is still the best option for you.
An expert can help you make the right decision
If you are still feeling overwhelmed, don’t worry; there is no need to navigate this alone. An expert can help guide you through the details so you have a firm grasp on all of your options. With an understanding of your unique financial situation, medical needs, and goals for the future, an expert can shop around for you and truly tailor your selection in a way that maximizes what you get out of a plan and minimizes what comes out of your pocket. You may find that a more non-traditional option is actually what works best for you, or even a combination of traditional and non-traditional plans. Whatever the case may be, a little help from somebody with the right knowledge will help take you out of the fog so you can make a clear, informed decision.
Don’t wait to get assistance
If you find yourself daunted by all the information that comes with selecting a health insurance plan, you are not alone! Luckily, there are experts you can speak with that will guide you in the right direction so you can find a plan that gets you the most for your budget. Schedule a consultation with Lighthouse Group today to ensure you find the right insurance plan for you and your family!
