5 Things You Should Know Before Choosing a Health Insurance Plan

Check if your hospitals, pharmacies, and health care providers fall under the plan’s network. So if there’s a healthcare center in Salem, NJ you’re loyal to, make sure they’re in the network. In-network services and medicines are covered under the plan while out-of-network services and medicine aren’t covered.

If you have a $1,500 deductible, your health plan won’t cover medicine or services until you’ve paid $1,500. Out of pocket expenses include primary care visits, procedure fees, and prescriptions. Check your policy to see if medical and pharmacy services are bundled, or if medicines are a separate deductible.

A premium is the monthly amount you pay the insurance company for coverage, even if you don’t use any medical and pharmacy services that month. High-deductible plans typically have lower monthly premiums, while plans with low deductibles have a higher monthly premium.

Companies use formularies, a list of prescriptions that are covered by the insurance plan. Drugs on the list are also divided by tiers which determine how much you’ll have to pay. Create a list of your current prescriptions and compare it to the plan’s formulary to verify if your meds are covered.

A co-pay is a flat fee that patients pay out-of-pocket for prescriptions and medical services like emergency room visits, doctor appointments, and specialist visits. Insurance plans determine these fees and the amount is usually printed on your insurance card.

Selecting an insurance plan is an important health decision for you and your family. By answering these five questions, you’ll feel better equipped when shopping around for an insurance plan.