Take the Stress Out of Choosing a Personal Health Plan

by Ed Byers
For those who purchase their own health insurance, selecting the best plan can be very stressful.

Careful and thoughtful planning should go in to choosing the appropriate benefit design, according to Lincoln Lafayette, vice president of Sales for Consumers Life Insurance Company, which offers competitive personal health insurance plans, and a variety of convenient services online.

"The best advice is to simply take your time," said Lafayette. "It would appear that most people devote more time to shopping around for an iPod than they spend choosing their health benefits."

Lafayette said fewer than 18 percent of Americans spend more than one hour reviewing materials about potential personal health insurance plans and fewer than 10 percent read the materials closely.

"Evaluating health plans can be overwhelming, but the downside of not educating yourself can be expensive," said Lafayette. "Although people may look at this as a short-term decision, meaning next year they may elect to change again, it is important to realize that a lot can change in a year's time and they need to be realistic about their decisions."

According to Lafayette, there are a number of important factors you need to consider when weighing personal medical insurance plans.

* Personal Needs:

o What level of benefits do you need? A good place to begin is by looking at your medical history and lifestyle.

o Find a plan that gives you and your family the flexibility it needs.

* Consider the cost and also consider out-of-pocket expenses such as:

o Deductibles, the amount of covered expenses that you must incur before benefits become payable by your health insurer.

o Copayment, a dollar amount as specified in the schedule of benefits that you are required to pay at the time covered services are rendered.

o Coinsurance, the amount of cost that you share with your health insurer after the deductible is met.

Lafayette said a higher deductible always means a lower premium: "Consider your age and how often you go to the doctor or hospital when choosing the level of deductible. For example, a younger, healthier person may want to consider a higher deductible. A key factor is to look at the total out-of-pocket expense you are willing to pay and you can calculate your costs with just the click of a mouse."

Consumer's Life also offers online health insurance quotes, and a wealth of information about products and choosing the right plan.

Although the task of evaluating health plans may seem daunting, the return on investment will be well worth the time.

"The ultimate goal," said Lafayette, "is to maximize your benefits and minimize your out-of-pocket expenses."

About Consumers Life Insurance Company Consumers Life Insurance Company is a subsidiary of Medical Mutual, the oldest and largest health insurance company based in Ohio. The company is licensed to sell health insurance products including dental insurance personal plans and personal vision insurance in 28 states and the District of Columbia. Consumers Life serves its customers through high-quality, affordable group and personal health insurance plans, and third-party administrative services to self-insured businesses. For more information, or a visit the company's Web site at www.ConsumersLifephp.com.