SUNDAY, OCTOBER 1, 2023
Now, it’s easier than ever to land a solid health insurance plan. It is, however, easy to miss the fine details of effective purchasing. Depending on your coverage, you’ll have several hidden advantages when browsing providers.
Keep in mind the three buying tips below. 
Tip One: Avoid the Lowest Premium
Modern health insurance is straying away from the age-old “low premiums govern all” approach. Too many buyers look at the monthly premium cost, rather than that considering copays—which are small, incremental costs. Annual deductibles, too, can cover major expenses far better than a low premium plan can. In general, you’re better off having enough savings to cover copay and coinsurance costs. Then, base your premium off of your remaining income.
Tip Two: Take a Look at Your Doctor Network
Understand which hospitals and doctors accept your new plan. Often, health plans will limit your coverage to preferred doctors. Today, out-of-network care is carrying better options for policyholders. It is still costlier than in-network care, however.
Tip Three: Opt for a Health Savings Account
Policies with high deductibles may make you eligible for a health savings account (HSA). An HSA lets you save money on a predetermined, pre-tax basis. You can use the account on a tax-free basis to pay out-of-pocket medical expenses. Whenever you withdraw money for another option, you’ll pay around a 20% penalty. You can, however, withdraw everything else with zero penalties after age 65.
It's important to view health insurance as a long-term purchase. Consider your tax plans, and don’t stray away from expenses which may have a long-term payout. Be smart, be safe and discuss further options with your agent prior to purchasing.
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