Time is typically limited to choose the best health insurance plan for your family, but rushing and picking the wrong one can be costly.
Here’s a start-to-finish guide to choosing the best plan for you and your family, whether it’s through the federal marketplace or an employer.
Step 1: Choose your health plan marketplace
Most people with health insurance get it through an employer. If you’re one of those people, you won’t need to use the government insurance exchanges or marketplaces. Essentially, your company is your marketplace.
If your employer offers health insurance and you wish to search for an alternative plan in the exchanges, you can. But plans in the marketplace are likely to cost a lot more. This is because most employers pay a portion of workers’ insurance premiums and because the plans have lower total premiums, on average.
If your job doesn’t provide health insurance, shop on your state’s public marketplace, if available, or the federal marketplace to find the lowest premiums. Start by going to HealthCare.gov and entering your ZIP code during open enrollment. You’ll be sent to your state’s exchange if there is one. Otherwise, you’ll use the federal marketplace.
You can also purchase health insurance through a private exchange or directly from an insurer. If you choose these options, you won’t be eligible for premium tax credits, which are income-based discounts on your monthly premiums.
Step 2: Compare types of health insurance plans
You’ll encounter some alphabet soup while shopping; the most common types of health insurance policies are HMOs, PPOs, EPOs or POS plans. The kind you choose will help determine your out-of-pocket costs and which doctors you can see.
While comparing plans, look for a summary of benefits. Online marketplaces usually provide a link to the summary and show the cost near the plan’s title. A provider directory, which lists the doctors and clinics that participate in the plan’s network, should also be available. If you’re going through an employer, ask your workplace benefits administrator for the summary of benefits.