5 Tips for Choosing the Right Health Insurance Plan #TimeWellSpent

I remember the first time I had to actively select my own insurance plan.  I was 25 (not terribly young) and I was recently no longer eligible for coverage under my University’s health plan.  I pulled out our phone book — remember those big yellow things? — and looked up the nearest agent to me.

As I sat at the desk looking at the most economical insurance plans I quickly realized something.  I had no idea what I was doing! LOL

I was completely lost.  Not wanting to be stuck with huge unforseen medical bills, I hit the books and did some research.

Choosing the right health insurance plan can seem like an insurmountable obstacle to your future good health and financial soundness.  But it is not as daunting as it might first appear. And, difficult thought it may first seem, doing your research and finding the right plan for you is of utmost importance to you and your financial well being.

I took all the brochures the agent gave me back home and studied them carefully.  I wrote out the benefits of each and compared them.  Living on just $1500 a month we didn’t have much money to put towards premiums.  However, if one of us we to have an accident or serious health issue, we would be even less capable of paying the medical bills.  We couldn’t afford to go without insurance, but many of the “economical” plans had super high deductibles.

In my search for the right insurance plan for me I learned several things.  Here are a few tips I learned along with some others I’ve picked up since.

5 Tips for Choosing the Right Health Insurance Plan this Open Enrollment Season:

1. Review your current plan! This may sound obvious, but the Aflac WorkForces Report found that 51% of employees prefer NOT to have more control over their health care expenses because they don’t have the time or knowledge to effectively manage them. And the 2014 Aflac Open Enrollment Survey found that 41% of employees spent 15 minutes or less researching their benefit options during the 2013 open enrollment season; and 24% spent five minutes or less! Not reviewing your benefits could lead to thousands of dollars of unnecessary health care costs. Obviously, this ignorance is not bliss. Reviewing health benefits can be a challenge, there is a lot of jargon the average person may not understand.  That’s where “the Google” comes in handy.  Also, don’t be afraid to ask family or a trusted and knowledgeable friend to sit down with you and help you out.
2. Review your options for this year: Set aside time (with your spouse, if you are married) to review the different plans you are eligible for.  Having reviewed your current plan (see tip 1) will help you get a feel for what benefits better fit your lifestyle and health needs. Understanding your past needs will help you prepare for your future needs. Be sure to review costs for spousal and dependent coverage.
3. Understand the financial implications your choices have on your budget. In addition to monthly premiums, make sure you can afford the yearly deductible costs. If a high deductible looks like it may be a burden, choose a plan with a slightly higher monthly premium and a lower deductible that may be easier to manage.
4. Seek out a licensed insurance broker: If you are having trouble sorting through all the plans, benefits, and which are best for you and your family, you may consider seeking out an insurance broker.  They can sit down with you and explain the various plans and help you decide which might be right for you.
5. Consider Voluntary Insurance: With medical costs on the rise and increasing deductibles and copays, unexpected medical expenses can be disastrous.  Voluntary insurance can help provide employees with financial safety nets. Voluntary insurance pays cash benefits regardless of any other insurance coverage employees have in place, including policies available through government health care exchanges.

In the end I decided to go with an insurance plan that had most of the benefits I needed, but had a high deductible.  I purchased voluntary insurance through Aflac to help cover any unexpected medical costs.  It was one of the best financial decisions I ever made! Aflac helped me pay doctors’s copays and hospital bills I eventually incurred. 🙂

I encourage you to read up on more interesting findings from Aflac WorkForces Report.

Aflac offers accident, dental, life, vision, cancer, hospital intensive care and more voluntary insurance policies. For nearly six decades, Aflac insurance policies have given policyholders the opportunity to focus on recovery, not financial stress.

I was selected for this opportunity as a member of Clever Girls Collective and the content and opinions expressed here are all my own.