How To Choose A Health Insurance Plan

Most companies hold their open enrollment period for health insurance sometime in November.

A recent study by the Aetna health insurance company and the Financial Planning Association found that 59% of Americans plan to spend less than an hour reviewing their health insurance options. That could be an expensive mistake.

The number one thing consumers do wrong is automatically pick the health insurance plan with the lowest monthly premium. Here's why: Those low-cost plans often come with high deductibles, and you may find yourself in an emergency situation that you can't afford.

Lisa Webber of Consumers for Affordable Health Care said, "It's becoming more popular to pick higher deductible plans, $5-, $10-, $15,000 deductibles. And what that means is you have to come up with $5,000 or $10,000 out of your own pocket before your insurance pays anything."

You also have to consider co-pays, the money you plunk down at the doctor's office when you go in for an appointment. If you go to the doctor a lot, those can add up. Plans also reimburse different amounts for hospital visits and for prescription drugs. And they may or may not pay for preventive care.

Mark Ishkanian of Anthem Blue Cross/Blue Shield adds that consumers should be aware that plan details change each year, too. So it may not be a good idea to just sign up for what you had last year without checking the fine print.

Webber recommends you compare plans based on the amount of care you used last year and add in any new costs you anticipate, like a scheduled surgery. She set up a spread sheet to compare plans using the following categories:

Deductible: The amount you pay before insurance kicks in

Non-listed Mental Health Deductible: May be different than listed mental health services deductible.

Co-insurance: What percent of the bill insurance pays vs. what you pay (i.e. 80/20 or 60/40, etc.)

Co-payments: The amount you pay per visit

General Lifetime Maximum: The total amount that insurance will pay over your lifetime

General Lifetime Maximum: The amount insurance will pay over your lifetime

Non-listed Mental Health Lifetime Maximum: May be different from listed mental health services maximum

Pre-Existing Conditions: Any illness you had before getting this insurance. Many plans won't cover it for one full year

Premium Rate: The amount you pay on a monthly or quarterly basis

Specific Health Conditions That You Need Covered: Any regular medications, services or illnesses that are costly for you

Ishkanian recommends that people take advantage of any health insurance question and answer sessions their companies provide, and talk to their company's human resources representative if they have questions. Consumers for Affordable Health Care often works with people who need to buy insurance on the individual market, but also can discuss employer-based programs with you. Their helpline is: 1-800-965-7476.