Health insurance is probably the most important financial product you can buy as an employee. It’s also one of the most confusing and overwhelming. There are a lot of different variables to consider when choosing a plan. Premium, deductible, co-pay, coverage amount, out-of-pocket maximum, and waiting period might be foreign terms to you if it’s your first time buying insurance. Even though it seems daunting at first, finding the best health insurance for you is not that difficult. You just need to understand what type of coverage is best for you, where you live, and your financial limitations. Follow these seven simple steps to help find the best health insurance for you:

Know Your Healthcare Needs

This may seem obvious, but knowing what health care services you’ll need is important. This might include preventative care, drug coverage, mental health services, treatment for a chronic illness, etc. Once you know your health care needs, you can find a plan that covers those services and any out-of-pocket expenses that may come along with them. 19. What coverage is best for you? Before diving into them, you should have a basic understanding of the different coverage types. There are three main types of plans: Preferred Provider Organizations (PPOs), Health Maintenance Organizations (HMOs), and Indemnity Plans. PPOs are the most common plan in the U.S. and are best suited for those who want flexibility and want the freedom to use any healthcare provider they want. An HMO is best suited for those who want the security of staying within their network. And an indemnity plan is best suited for those who like to know exactly what their annual costs will be.

Check Your Eligibility for Coverage

You can ask your Human Resources representative if your company offers health insurance if you’re employed. They’ll let you know if it’s offered to you and your eligibility. You can also see if your spouse’s employer offers health insurance. If they do, you can sign up for it, and your spouse can add you to their plan. Potential healthcare coverage options for the self-employed include marketplace exchange and short-term insurance. In the past, short-term health insurance was mostly for people in between jobs. The Affordable Care Act (ACA) changed that and opened it up to anybody who wanted to buy it. However, you can only buy it for a maximum of three months.

Know the Different Health Insurance Plans

There are a few different types of health insurance plans to choose from. Most will be administered by either an insurance company or a broker. Affordable Care Act (ACA) compliant plans are available in all 50 states. For-profit plans are privately owned and operated by companies that are out to make a profit. Non-profit plans are government-owned and operated. There are also hybrid plans that are a mix of for-profit and non-profit. Understanding the differences between these plans is important so you can make the best decision for yourself and your family.

Find Out What’s Important to You

It’s time to look at other important variables.  You should ask yourself some questions, such as:

• What type of plan is best for you?
• How much coverage do you really need?
• What expenses are you willing to cover out-of-pocket?
• If you move to another state will you still be covered?
• How many providers are in your network?

These are just a few of the questions you should be asking yourself. The answers will help you narrow down your choices.

Check Out the Companies and Their Ratings

Now it’s time to get down to the nitty-gritty and look at what companies are out there and what they offer. First, you need to narrow down your options. There are dozens of companies out there, so you may want to limit your search to five or six. Once you’ve narrowed down your options, you need to check out their ratings and reviews. You can do this online by Googling the company’s name along with “reviews” or “ratings.” This will give you a better idea of what each company is like. Often, finding a company backed by top healthcare private equity firms is usually a good indication, as it indicates confidence in the company. Providers may have complaints  filed against them. Check with your state insurance department to make sure it is not your provider.

Understand What You’re Purchasing

When you finally decide on the right provider, it’s time to dive into the plan’s fine print. You want to ensure you understand everything in the plan and your out-of-pocket expenses. Ensure you understand your coverage amounts and any waiting periods you may have to go through before you’re eligible for certain services. Doing this will help ensure you purchase a plan that is best for you and your family and that you’re not overpaying for coverage.

Bottom Line

There are many options out there, and finding the best one can seem daunting. But if you follow these steps, you’ll be able to find the right plan that’s best for you and your family. Remember, buying health insurance is an important financial decision, so make sure you do your research.