Family HealthInsurance

Selecting a Family Health Insurance Plan

Due to the rising costs of medical care, finding the perfect family health insurance plan is more important than ever before. In this guide, we go over the terms and concepts most commonly heard when shopping for health insurance, as well as walk you thorough a list of questions and options to consider when examining online family health insurance quotes so that you can make sure that the plan you select is ideal for you and your family.

Understanding the Costs Involved in Health Insurance
When you have a family health insurance plan, there are several ways in which you will be responsible for costs. Your family health insurance premium refers to a fee that you pay in installments - usually monthly. Your premium will stay the same month to month regardless of how often you utilize health services, but it may increase from year to year if your insurance company decides that your insurance risk has changed.

Other than a monthly premium, you will also be responsible for copays. A copay is a small amount of money that is due each time you receive healthcare services. A primary care practitioner or specialist visit, a trip to the emergency room, a prescription, or an item of durable medical equipment are all examples of services for which you must usually pay a copay. The amount of this copay varies depending on your plan and the type of service received, but often ranges from about 10 to 50 dollars, with certain services such as ER visits ranging from 50 to 200 dollars.

For some plans, a deductible must also be met. A deductible is a specific amount, for example 500 or 1000 dollars, that you will have to pay completely out of pocket before your family health insurance plan begins to cover your costs.

In addition to the premiums, copays, and deductibles, there are occasionally “hidden” costs for some health plans. Pay close attention to whether any types of services are only partially covered - for example, some providers will cover only 90 percent of your hospitalization costs, which can really add up. Other family medical insurance plans will not cover certain types of services at all, which can mean high out of pocket expenses.

Because the costs involved in family planning and health insurance can be complex, it is always a great idea to use a health cost calculator to determine how much you pay for various health services now and how each specific plan will cover your average costs. Getting a free rate quote is a great, no-obligation way to compare various types of health insurance and how they handle premiums, copays, deductibles, and other costs.

Understanding Plan Basics
The most common terms you may come across while shopping for a family health insurance plan are acronyms such as HMO, PPO, POS, and FFS. In brief, these acronyms refer to the fundamental way a health plan is organized and managed, and it is important to understand the differences between them when examining your online family health insurance rate quotes.

An HMO, which stands for “health maintenance organization”, is a plan type in which costs are strictly controlled. This is good news for people looking for an low cost, affordable family health insurance plan, because your premiums as well as copays will generally be very low. Deductibles are low or non-existent. However, HMOs tend to be strict in terms of what types of services they cover, and you will have to seek care within a specific network of providers.

The PPO and POS (preferred provider organization and point of service organization) are great choices for people looking for more flexibility in choosing health care providers, although the premiums, copays, and deductibles can be higher than they are for an HMO. In these plans, you generally have a primary care physician who coordinates all your care. But you are free to get various health services both inside and outside the PPO or POS network, although your costs will usually be higher outside the network.

Finally, an FFS or Indemnity insurance is a type of plan in which you can seek care anywhere and get reimbursed. These plans are great for people who want to choose all of their own providers, but they can be very expensive, especially for families.

It can be difficult to determine which plan type is the best financial choice for your family, but a good way to start is by using a health cost calculator and free rate quotes to compare costs across a wide range of different family health insurance plan types.

Making Your Final Choice
No plan is right for every family, so in addition to finding out what costs are involved in each family health insurance plan, consider a few additional factors as you examine rate quotes:

1. Care Provider Selection: Do you have a health care provider or providers you already prefer, and if so, is he or she covered under your prospective plan? Do you mind going through a primary care practitioner for all of your health needs, or would you like to directly access all specialist services? Finally, do you mind if your health insurance company selects a provider for you, or do you want to select him or her yourself?

2. Out of Pocket Expenses: Would you prefer to pay a bit more for coverage that lets you utilize it often without worrying about high out of pocket expenses? Do you worry that high copays will negatively impact your health because you will resist seeking care?

3. Deductible: If you will have a deductible, how likely are you to meet it each year? Is the deductible affordable for your family? Can you pay for your deductible using your HSA (a health savings account that will save tax money)?

4. Current Health Needs: Are the members of your family currently healthy? If they have any illnesses or conditions, are they covered adequately by the plan? Is there a pre-existing condition clause? How often do you utilize health services each year? How often do you need routine care versus care for accidents and illnesses? If you and your family members take prescription medicines, are they covered in the plan's “formulary”, and if so, how much is your copay for each medication? Does the plan allow you to use non-generic or third-tier medications without a prohibitive copay?

5. Age: If you have young children, does the plan cover various things they might need, such as well child visits, vaccinations, developmental therapy, school physicals, etc? How old are you and your partner, and do you expect your health care needs to change as you age? If you plan to have another child, how does the plan cover pregnancy and birth? How much is covered and where can you give birth?

6. Alternative Health: Some plans cover some types of alternative health, such as acupuncture and massage therapy. Is this of interest to you? If you may have another child, will you want to use alternative birthing resources, such as a midwife clinic, and does the plan cover it?