Private Medical Insurance Comparison Tips

When comparing a medical insurance policy against another there are several things you should be aware of.  Be sure that the carrier has a limited number of consumer complaints, is likely to be financially able to pay future claims and you want to make make certain that the particular contract you choose covers benefits you are likely to need.

Not every health insurance company will be in good standing with your state's department of insurance.  Be sure to buy only from carriers that meet the standards or your state's commissioner of insurance.

Your state's department of insurance is probably the best place to look to see if a medical insurance carrier has an excessive number of consumer complaints against them.  You should be able to contact them on the Internet, via telephone or via email to ask about any health insurance carrier that sells in your state.

The number of complaints should be compared to the number of policy holders a medical insurance company has.  The volume of complaints isn't the important factor.  Larger companies are likely to have more complaints against them than smaller companies.  The ratio of complaints to policy holders is the important thing to compare.

The financial stability of an insurance carrier is also critical.  You can visit AM Best's website to get their opinion of the company's financial stability.  Buying a health insurance contract from a carrier with a poor rating is like getting an IOU from someone who is no longer employed.

Once you have limited the field of companies to choose from to those who are in good standing with your state's insurance department, have a reasonable number of claims when compared to the size of their contract holder base and that are financially stable, it is crucial to know whether or not the contract itself is a good one for you and your family.  You will need to know whether you will be able to get care from physicians and hospitals that are convenient to you.  You will need to know whether or not they will cover you when you have a major medical  expense.

Most private health insurance policies today will have a network of physicians that they encourage you to use when you need care.  If you go to a doctor who it outside of their network, you will wind up paying more for your medical expenses or may wind up paying the full amount for your care.  The penalty for using a non-network provider is usually pretty steep.

Since using network providers results in your getting more of your medical bills covered, the network is important.  You will want to see if your physician is in their network.  If your doctor isn't in the network, as a minimum you will want to make sure that there are physicians in the network who are convenient.  You will want to make sure that a hospital near your home is in the network as well.

When looking at the benefits of health insurance contracts, be sure to investigate how each contract covers the big expenses.  A contract with a low copay for doctor visits but an unreasonable limit on what it pays in the hospital is a bad policy. 

Be sure to purchase a policy with a lifetime limit of no less than 3 million dollars and no separate lifetime limit.  Also be sure that your coverage in the doctor's office is not limited.  Beware of policies that have limited benefits in the doctors' office.  You can go bankrupt trying to pay physician bills even if you never set foot in a hospital.

Knowing what to look for when comparing private health insurance policies is crucial if you want to make the best choice for yourself and your family.  A good policy will be backed by a good carrier that has a history of paying its claims and is expected to be able to pay its claims and other obligations next year and beyond.  A good policy will have a good network of physicians and hospitals that is near your home and/or job and will not have unreasonable limits on the care it pays for.