Health Insurance Shopping

The first step to making a smart health insurance decision is to understand the value of health insurance and why you need it. It may sound obvious, but many people don't properly understand the basic purpose of health insurance or how it works. In brief, health insurance helps protect you in the following ways:

Health insurance protects your finances

It entitles you to discounted rates - Insurance companies negotiate rates with health care providers. Without coverage, the fee charged for a regular office visit can be twice as high.

• It shields you from unexpected medical costs

Even if your health plan requires you to pay certain costs out of pocket, being covered can help save you from bankruptcy in case of injury or hospitalization.

Health insurance protects your health

• It improves your access to quality care

As a member of a health insurance plan, you have access to a broad network of health care providers.

• It provides you critical care

While uninsured patients will often get emergency-room care and be billed afterwards, they may not get important treatment for a life-threatening chronic condition without an upfront payment.

• It encourages a healthier lifestyle

You may be more likely to take advantage of regular checkups and preventive care if you know it won't cost you an arm and a leg.