Family HealthInsurance

Selecting Affordable Family Health Insurance

Did you know that unpaid medical bills are the most common cause of personal bankruptcy? In many places across the country, a short hospitalization can cost 100,000 dollars or more. Even a simple ER visit can cost 2,000 to 8,000 dollars. For the uninsured and the minimally insured, these costs are so astronomical that they place people in danger of losing their homes and assets due to medical debt. No one is more at risk than families with children, for whom health care needs can be substantive.

Fortunately, it is not as difficult as you might think to find affordable family health insurance, but you will need to be thorough in doing the research, comparing different plans, and calculating costs. The best way to get started is through an online health cost calculator and free rate quotes that let you examine side-by-side comparisons of a variety of different types of health insurance plans.

How Much Coverage Do You Need?
The first thing to determine when shopping for family health insurance is how much coverage you will need. In other words, what kind of health services do you expect to access based on the current health needs of your family, and how can you best select coverage for services and situations that may happen in the future - for example, unexpected illnesses or accidents?

First, let's tackle your existing health needs. Using an online health cost calculator, determine what your average health-related costs would be if you paid out of pocket for everything that you would need during a year.

For example, how many times does each of your family members visit a primary care practitioner or a specialist, and what is the average cost of these visits? How many prescriptions does each family member need each year and how much do they cost? Does a family member have an ongoing medical issue that requires periodic services, such as physical or occupational therapy? Do you generally need to purchase any medical equipment such as diabetes care supplies, oxygen, or wheelchairs or canes?

Thinking About Future Medical Needs
Next, think a bit about your future medical needs. Obviously, no one can ever fully predict accidents, illnesses, and medical conditions they may suffer in the future, but you can ensure that you are protected if the unthinkable were to happen.

What you will be looking for is a policy that offers coverage against even the most catastrophic illnesses or accidents. Avoid a policy that does not cover hospitalization, places a strict cap on hospital and other expensive services, or expects you to pay a large percentage of your hospital bills.

In addition, check to see if the policies that you are looking at cover frequently-needed services such as mental health care, physical therapy, and if appropriate, pregnancy and childbirth coverage. These are all services that can result in significant financial liability for families and areas in which some policies skimp on coverage.

Comparing Health Insurance Plans
Next, use a free online health insurance rate quote tool to examine several different plans. Remember, there is no obligation involved when getting a rate quote, so don't be afraid to enter your family's information in the free online tool. You will be using the results to compare the amount you spend on average for your existing health needs with the total amount you would spend if you were on each of the plans.

With the rate quotes in hand, calculate how much you would still be liable for if you were to purchase each of the plans. Make sure to take into account the fact that there are several different ways you will be responsible for costs when you have family health insurance.

First, you will have your monthly premiums. Then, you will probably have a copay due each time you use a service, so add those fees into your total. Then, you may also be responsible for a portion of the total each time you use some kinds of services. For example, under some plans, you will pay 10 percent of the total for hospitalizations and certain other services. If you on average incur any of the types of services for which you will be responsible for a percentage, add that total in as well. Finally, check to see if there are any services you will need that are not covered at all, and add in the full cost of these services.

You should now have two sets of totals. First, you have an amount you would pay for medical care if you had no insurance at all. Second, for each health plan you examine, you will have an amount you would pay yearly on average to cover your existing health needs if you were on the plan. You will most likely notice that the second set of amounts can be higher than the first. This is because your health plan doesn't just cover your current needs but also provides insurance against future medical needs that can sometimes be catastrophic. So in sum, you are paying a bit extra to cover unexpected medical needs.

Putting it All Together: Selecting Your Plan
You now have the tools you need to make an informed decision about selecting an affordable family health insurance plan. Looking at the totals you have calculated using your free online quotes, you will be able to see in an instant which plans are a better or worse deal.

In addition to looking at the bottom line by comparing your out of pocket expenses on a variety of plans, also consider additional factors that may make some plans more or less desirable. For example, if you want to be able to select all your own health care providers, it may be worth it to spend a bit of extra money for a PPO instead of an HMO, because PPOs offer more flexibility.

Also consider whether or not you will want to have a deductible, which is an out-of-pocket amount you must reach before your plan “kicks in”. There is no right or wrong answer in terms of deductibles, but keep in mind that a very high deductible plan may very rarely cover any medical expenses for your family. If you select a plan like this, you must be prepared to handle day-to-day medical expenses and the entire cost of the deductible on your own.

According to health insurance experts, no single plan is right for every family. Using free rate quotes and health cost calculators is a great way to be able to look in-depth at the different options offered by health insurance companies so that you can select an affordable family health insurance coverage that is best suited to cover your current and future medical needs. Your family depends on you, so it is essential to make the very best decision you can to ensure their medical needs are taken care of today and in the future.