Buying health insurance is a complex process. Even the simplest policies can come with hundreds of pages of fine print. Fortunately, there are resources to help one understand their options and make an informed decision. This guide will walk prospective health insurance buyers through what they need to know before buying health insurance.

Coverage

Health insurance varies widely in coverage and cost. The right plan depends on one’s specific needs and budget, but it’s always best to purchase as much coverage as possible without going over budget.

Affordability

The cost of health insurance depends on where one lives, how old they are, and whether or not they smoke cigarettes or use tobacco products, among other things. Some insurers charge higher premiums for smokers or those who have pre-existing conditions such as diabetes or high blood pressure (hypertension). Certain insurers also charge more if they consider certain medications necessary for the policy buyer’s treatment. One may find that these extra charges make it impossible to afford adequate coverage. It’s important to get quotes from multiple insurers. Look at different companies’ plans and compare them side by side.

Pre-Existing Conditions

People who have pre-existing conditions may be able to receive coverage through the Pre-Existing Condition Insurance Plan (PCIP). The PCIP will cover medical costs for those who have been uninsured for at least six months and have a pre-existing condition that was not diagnosed or treated before losing coverage.

How Much Does It Cost?

There are three major health insurance plans: bronze, silver, and gold. The level of coverage one chooses depends on their budget, but the higher the deductible and co-payments, the lower their monthly premium will be. Bronze plans have high deductibles with low premiums.

On the other hand, gold plans have lower deductibles with higher premiums. If one is young and healthy, a bronze plan might be the best fit; if one is older or needs more extensive coverage, they must consider a silver or gold plan that offers more benefits at a higher cost per month.

What’s Covered?

Each state determines which benefits must be included in all health plans sold within its borders. These essential benefits include hospitalization, prescription drugs, and mental health services, among others. Some states require health plans to cover additional services such as pediatric dental care.