How Do I Compare Health Insurance Plans?
How do I Compare Health Insurance Plans?
Supplemental health insurance can help protect you and your family from the financial impact of an unexpected injury or illness by reducing your out-of pocket medical expenses. With so many options available, comparing health insurance plans to find the one that is right for you and your family can be overwhelming. But comparing plans is necessary for determining the eligibility requirements, evaluating what is and is not covered and estimating your out-of-pocket expenses.
Eligibility
You may not be eligible for every supplemental health insurance plan available. Some plans offer guaranteed acceptance, while others determine eligibility based on your medical history and whether or not you are leaving a company group plan. Find out the requirements of each plan you are considering to determine whether or not you are eligible for coverage before you apply.
Coverage Level
The purpose of health insurance in Canada is to provide the coverage you need for routine and emergency medical care, while reducing your out-of-pocket expenses. A typical plan pays a percentage of the cost associated with covered services, such as prescriptions, home care, medical equipment and more. But all health insurance plans do not offer the same level of coverage for the same services.
Some plans cover certain services; partially cover others; and exclude some altogether. It is important for you to review each plan to find out what is and is not covered, especially if you have a pre-existing condition. Some health insurance plans will not cover the cost of treatment for pre-existing conditions. If you have a pre-existing condition, make sure you choose a plan that covers the costs associated with treating it.
Cost
There is more to the cost of health insurance in Canada than the monthly premiums you pay. Many plans also have deductibles. A deductible is the amount you must pay for services rendered before your health insurance plan will begin covering the cost of your treatment. For example, if you have a $500 deductible you must pay the total cost of your health care up to $500 before your insurance will begin paying.
After you have met your deductible, you may be responsible for paying a portion of your healthcare costs in the form of a copayment or coinsurance. For example, if you have a $20 copayment for registered therapists, you will have to pay $20 every time you visit a registered therapist. The premium, deductible and copayment/coinsurance associated with each plan are out-of-pocket expenses you will incur. Make sure you consider your total out-of-pocket costs when comparing health insurance plans.
Maximums
Every health insurance plan has a maximum dollar amount they will pay for products and services within a given period of time. For example, Plan A may pay a maximum of $1,500 a year for medical equipment, while Plan B pays a maximum of $5,000 a year for medical equipment. After the plan has paid the maximum amount allowed, you are responsible for any additional costs above that amount. Be sure to select a plan with maximums that meet your needs.
Choosing a Canada health insurance plan is an important decision. If you are still unsure about which plan is right for you and your family, you can contact a customer service agent for additional information and a health insurance quote.
