Health Insurance—Buying

Read and understand your policy carefully.

Choose a policy from a company that is financially sound. Best's Insurance Reports, available at most public libraries, can give you this information. Every member of your family should be covered on medical insurance.

Health insurance lets you budget in advance for unexpected illnesses and the high costs of medical care. Every member of a family should be covered by medical insurance.

If your employer offers a group medical insurance policy for you and your family, sign up for this benefit. It's a good buy whether the employer pays all premium costs or if you must pay part of them. Group policies are usually the least expensive per person.

If your employer doesn't provide health insurance, try to join a group that does. Cooperatives, trade unions and other private organizations may have policies available. If you leave a job for any reason, and lose medical benefits, arrange for coverage until you join another group.

Anticipating medical needs…

It's hard to anticipate your needs for medical care, so buy the broadest policy you can afford. Be sure you're covered for accidents and illnesses, also outpatient and hospital care. Other desirable benefits for some individuals include: prescription drugs, diagnostic tests, dental care, private duty nursing and skilled nursing home care

Choose a policy that pays on the basis of services performed, or a stated percentage of the costs, rather than a specified amount for different services. Although a specified amount for a particular procedure may seem adequate when the policy starts, costs could have increased greatly by the time you need it.

Compare the costs of several policies offering the same coverage. Rates are not the same. Look for the "loss ratio" of a company before you buy. This indicates how much in claims policy holders have received from premiums they paid in.

Read policies carefully for exclusions

Read policies carefully for waiting periods, pre-existing conditions and other exclusions. Avoid restrictive policies. Be sure you understand all terms used. Ask the insurance representative to explain terms in simple language. Make sure you understand the terms for renewal and the conditions for changing premium rates.

The Georgia State Department of Insurance can answer questions about a company, its reputation and record of servicing claims of customers. Be careful about buying health insurance from mail order insurance companies.

Review your insurance coverage periodically to make sure it still meets your needs.

For more information on buying health insurance, contact your local county Extension office.