In the past, I have used health insurance provided by an employer. When leaving employment
or working somewhere with no benefi ts, I’ve used the continuation benefi ts from a job that I or my wife was working at when one of us left. I have purchased individual insurance from private insurers without really knowing what options I had or how well the plan I bought would work for me. I’ve also been ripped-off: in subtle ways and in some very big ways, and I hope that you can avoid some of the traps that have gotten me.
In this guide, you will learn how to get the best deal on health insurance – for you. Not a good deal for someone else, but a technique that will provide you with a comparison of how well each of your available health insurance options meets your needs, and how much your total health expenditures can be – whether in a good year, or a year where there are one or more health emergencies in your household.
What is a Good Deal?
Before launching into the process of getting a good deal, you should briefl y review the factors
that constitute a good deal. Each of the following points in Figure 1.1 is an important factor in defining a good deal on health insurance.
Figure 1.1: What Makes a Good Deal?
Let’s explore getting the most for your money in more detail.
1. Value
Getting the most for your money means getting the best value for you. This may not be the
same value as your sister, your best friend, or your neighbor. For example, two different
people drive cars – one sees the best value in getting the most miles to a gallon of gas. Another
sees getting the most enjoyment from a gallon of gas. While the fi rst may be trying to
save money, the second may be trying to enjoy the act of driving, placing that at a higher
priority than the additional cost of fuel. Both are trying to get the most for their money, but
they are after different goals. This is true of health insurance, where different coverages
and approaches will be better for different people – not a one-size-fi ts-all approach. Some
people are more attracted to having a lower monthly payment, others are more attracted to
having a lower deductible.
