Gotta be done.
Don’t want to do it.
Afraid of the cost.
Perhaps this list will help take some of the pain out of the process.
When you are shopping for new health insurance, you can separate the good ones from the bad ones with these key items:
- Customer Service and Company Strength
- The Network
- The Type of Policy
- Price
Customer Service and Company Strength – How do you find out anyway?? Turns out, it’s pretty easy! There is a national organization that keeps track of this information for you, it’s the National Association of Insurance Commissioners – and yes, they have a web site: http://www.naic.org/consumer_home.htm
On the left side of the NAIC web page, you’ll see: “Consumer Information Source (CIS): File and/or search complaints for individual insurance companies” Click on it. A Complaint Ratio of 1.0 is average. Less than 1.0 is better. More than 1.0 is definitely not better.
Enter your favorite insurance company name, choose your state. Statement Type is “All,” Business Type is “Life/Accident/Health,” and then click: Find Company. Then click on “Closed Complaints,” and “Closed Complaint Ratio Report,” finally, choose “Individual Accident and Health.” Voila! There’s the info. Not just the Complaint Ratio but also their financial position. You're asking yourself: Why didn't I know about this?
The “Network” – All good health insurance companies have provider networks. These are called PPO Networks or Preferred Provider Networks. So, first of all, how big is the network? Did you know that it will cost you a lot more to use a provider that is out of network? Is your doctor in the network? This item alone could be a deal breaker for you. Are the hospitals near you, or are hospitals you care about, in the network? All of this information is available to you BEFORE you make a decision. On the insurance company's web site they will highlight their network and give you the ability to search for providers. Do this! It's important.
Type of Policy - Here’s where it starts getting complicated. There are PPOs and HMOs and Indemnity policies… what works best for you is a very personal decision. However, the policies with more coverage cost more. You knew that. Here’s what people don’t seem to want to do, though: They don’t sit down and think about how they use the healthcare system. Do you go to the doctor frequently? Did you know that having a $30 copay for doctor visits could increase the cost of your insurance by $100 or more a month? If you go to the doctor twice a year do you want to add $1,200 to your annual cost for a $30 copay? Are your children young requiring frequent medical attention? Are you older when “things start to break?”
On the AIG web site, you’ll see “Consumers, Insure U.” Click on it. They have done an excellent job of highlighting what to consider based on your age and personal situation. Spend a few minutes here and save big bucks in the long run.
Competitive Pricing – don’t make the mistake of making this number one on your search criteria. Notice that I put it last. And yes, an experienced broker can help you sort through this after you’ve done a little work to learn what to ask. Remember there is a difference between an “agent” and a “broker.” A broker represents many insurance companies. An agent only one.
All insurance companies use the same set of statistics to figure out how to price their product. So, if a policy from one company is dramatically less than a “similar policy” from another company, there’s probably a reason and it's not because the insurance company is trying to be nice.
Can I help? Sure, give me a call or best of luck to you!
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