How to Choose a Health Insurance Company

With the recent passage of the health insurance reform, many people are shopping for and choosing their own health insurance. No two insurance companies are the same, and understanding the industry language can make the process much easier. Here are a few things to keep in mind when you are looking to choose a health insurance company.

• Know the language - Many people make choosing health insurance a lot harder than it needs to be. Learning a few simple terms before starting the required research will help the consumer understand and make better choices. Understanding the differences between the premium, the monthly cost, deductibles, the cost you pay before the insurance kicks in and co-pays will help you truly evaluate the cost of the product that you are considering.


• Do your research - There are many insurance companies to choose from, and no two companies are alike.  Each company offers various products that may meet your need. Research and understand the types of policies that are being offered. 


• Understand the differences between HMOs, PPOs , POS and high-deductible policies - Understand the networks that come along with these and whether or not these would be a good fit for you. The Internet offers you the opportunity to get quotes and compare prices and policies side by side. Ensure that you are comparing the same type of policy for the best results.


• Be honest - When requesting a quote or other insurance information, be honest about any health issues that you have. While a company may not reject you, your policy may be rated up, which will increase the monthly cost. Being up front will prevent you from having to do this process all over again once you fill out the application.


• Read and understand the fine print - Health insurance often comes with a number of stipulations on what will and will not be covered, as well as any wait periods that you may have on pre-existing conditions.  Understand what these are prior to signing your contract. Most states offer a "free look" window of three to ten days in which you may cancel your contract for a full refund if you find anything within the policy that you are not pleased with.