Know What to Look for When Buying Individual Health Insurance

Here’s how—
• Before choosing an election amount, estimate your out-of-pocket health care expenses for the coming year. Think what you expect to pay for annual exams, plus regular dental and vision care. Tack on some extra for the supplies you buy for your family’s medicine cabinet (aspirin, bandages, cold/allergy medications, etc.). Tack on some more if you know additional, non-routine health care services are on the horizon, such as any planned surgeries, or orthodontia or other major dental work.
• Keep track during the year of how you are spending down your account. If the end of the year approaches and you don’t expect to use up these funds, use what’s left in the account for more medicine cabinet items, to buy a spare pair of eyeglasses, or the like.
• Even if you end up with a few dollars in your account, you’re still ahead financially. Remember that you’ve saved significant tax dollars by contributing to an HCFSA. Let’s use the $1,200 annual election/30% combined tax rate again…your $1,200 in HCFSA contributions have saved you $360 in taxes. If the amount you don’t spend is less than this—and given all that the HCFSA can be used for, it certainly should be—you’re still ahead.
HCFSAs are easy to use. After you’ve had an expense, you file a simple claim form, and attach substantiation of the expense, such as a dentist bill or explanation of benefits from your health insurance carrier. Many HCFSAs now come with a debit card, which you can use to pay for an expense at the time of service, rather than paying out of your pocket and filing a claim for reimbursement.
Virtually everyone has out-of-pocket health care expenses; why not pay for them in the most cost-effective way? Sign up for your employer’s HCFSA.


Know What to Look for When Buying Individual Health Insurance
Most Americans who have health insurance are covered through an employer’s plan. However, some employers do not offer health insurance coverage. If you work for one of these companies, you will need to purchase private individual health insurance.
There are certain advantages to purchasing health coverage in the private market. Instead of choosing from plans pre-selected by an employer, you decide which plan features you want, and pick a plan accordingly. For example, by choosing a plan with a higher deductible, or one that doesn’t cover certain services, you may realize a substantial premium savings each month.
Instead of having your coverage tied to a place of employment, coverage through a private health plan is yours to keep no matter where you work. A health insurer can’t drop you as long as you pay your premiums on time.
But along with these advantages come some potential disadvantages—
• Employer plans provide considerably more coverage than individual plans, even when you are paying the same premium rate. That’s because with an individual policy, a larger percentage of the premium goes to pay for such operational costs as marketing and paying claims.
• A group plan generally must insure all employees and family members, while individual plans can reject applicants who aren’t in perfect health. They can also offer plans that exclude coverage for certain pre-existing conditions.
• In most states, private health insurance plan premiums increase as you age. Initially, you can avoid these rate increases by periodically changing plans, because new rates tend to be lower than renewals. However, as you get older, it will become more difficult to find a company to insure you and individual policies will get more expensive.
If you do need to shop in the private health insurance market, you first need to find a competent insurance agent. Determining what kind of insurance you need and how much coverage to buy are complex issues. A good agent will help you assess your situation, and work with you to find the right coverage for your specific needs. The key to a successful working relationship with an insurance agent is trust. You should be able to trust your agent’s knowledge, experience and professional judgment, and you should always feel secure that your agent is acting in your best interest. But keep in mind that trust is a two-way street: Your agent also needs to trust you to provide information that is truthful and complete.
If you are comparing several plans, you need to know what to look for before making a decision. When choosing a health plan ask your health insurance agent the following questions:
• Will the plan cover me for the specific doctor or hospital I would like to use?
• How does the referral system work?
• What pre-existing conditions would affect coverage?
• How will the plan handle care if I (or a family member) am away from home?
• What is the plan’s monthly premium, and what deductible and coinsurance am I required to pay?
• Are there other fees, such as copayments and any additional charges if I use providers that are out-of-network?
• Is there a maximum amount the plan will pay over a year or a lifetime?
• What types of benefits are specific to this plan?
The purchase of individual health insurance in the private market can seem confusing. Approach its purchase like you would that of any important item—research your options and compare prices, and get the best advice and assistance you can, in this case, the services of a qualified insurance agent.

About the Author

Oxonia Insurance Group is committed to helping our customers obtain Quality Health Insurance in the simplest way possible. We provide you with a free phone consultation from one of our licensed insurance agents who can help you find Affordable and Quality Individual Health Insurance, Family Health Insurance, Group Health Insurance, Short-Term Health Insurance and Mini Medical Plans. Oxonia is able to simplify the process for the consumer by offering health care plans from a multitude of top health insurance carriers. At Oxonia Insurance Group you can compare healthcare plans and find the best fit for your needs. Once our licensed agents have found the plan that best works for you, they will take your application right over the phone. Then, your health insurance application will be electronically submitted immediately to the carrier of your choice. Often, you can be approved and have coverage as soon as the next day! Oxonia currently sells health insurance in 47 states, and has developed partnerships with a multitude of health insurance providers that are highly rated companies, known to be consistent in providing excellent and reliable customer service, creative with product innovation and in tune with the needs of the consumer.