• Ask about co-pays, deductibles, and implications regarding pre-existing conditions.stethoscope image by Ana de Sousa from Fotolia.com
  
  The process of selecting and purchasing health insurance can be very complex because of the variety of plans. HMO (health maintenance organization) plans often eliminate costs beyond your premium, but restrict your choice of doctors. Indemnity or fee-for-service plans allow choice in care providers, but often have higher premiums and deductibles. High-deductible plans are growing in popularity because they can include an option to link to a health savings account for reimbursement of out-of-pocket expenses. Regardless of the type of plan, assess each choice in terms of how it will adequately cover your needs and the impact on your budget before you buy.
  
  

Impact on Pre-Existing Conditions

• Take time to carefully examine policy clauses regarding pre-existing conditions. Confirm that the company will provide coverage and ask about waiting periods. Find out if a health examination will be required. Ask the insurance representative what impact a family history of diabetes, hypertension, obesity, cardiovascular disease or other illnesses might have on your coverage, potential exclusions, and premium rates.
  
  

Compare Various Plans Based on Your Use

• Review your pattern of health care needs over the past year. Think about what you use insurance for most often. Include needs for vision care, dentistry, mental health services and physical therapy. Compare your choice of plans in terms of what they will cover and at what cost for what you use your health insurance for the most.
  
  

Identify and Review Approved Doctors and Facilities

• Examine the insurance plan to find out if you will have a choice in doctors. If the insurance company can provide you with a list, check to see if your current doctors are registered and approved for payment. If the plan requires that you go to an HMO, you may have to switch from your current medical providers. Also check their list for approved facilities for outpatient services like dialysis and physical therapy.
  
  

Evaluate Deductibles and Co-Pays

• Remember that if your plan includes a deductible, you will have to pay for this amount out-of-pocket. If there is a co-pay feature, you will also have to pay around 20 percent of the cost charged for a doctor's office. Inquire about typical costs charged by your doctors.
  
  Many insurance companies pay for only 80 percent of what they feel is "usual and customary." If your doctor's fees are viewed to be high, the insurance company may require you to pay the balance of what they won't cover. This issue is generally avoided if you choose an HMO because the insurance companies have already established payment fees, so deductibles are generally low, and in most cases there is very little (if any) cost required from you in terms of a co-payment.
  
  

Compare Coverage Provided By Your Spouse's Plan

• Analyze the companies and plans you are considering in comparison to your spouse's plan if you are married. You might find it better to have everyone insured on one plan or to have two policies. If you have children, make the same comparison to see if one policy is better than the other for their insurance needs.