Are you a new adult feeling overwhelmed by how to choose a health insurance plan? Don’t worry, you’re not alone. Navigating the ins and outs of how to choose a health plan as a new adult can be a daunting task, but it’s an important one.
Whether you’re looking for a primary care physician, seeking specialist care, or just trying to understand your insurance plan, it’s crucial to be informed and empowered when it comes to your health.
In this blog post, we’ll provide you with advice and tips for how to choose a health plan as a new adult. From choosing a health plan to finding the right doctor, we’ve got you covered. We know that this can be a complex topic, but we’ll do our best to break it down in a way that’s easy to understand. So, grab a cup of tea, sit back, and let’s dive into the world of healthcare!
Note that this is an especially long post. There is a lot of research put into this post. It is meant to be a guidance document that you can refer to as you embark on your health plan journey.
So, don’t feel the need to read it all in one sitting! Instead, take your time and absorb the information at a pace that works for you.
I. Why Should I Care About My Health Care Plan?
You might be thinking, “Why should I even care about my health care plan?” Well, because your health is on the line! Your health is a key aspect of your overall well-being, and having a good healthcare plan can ensure that you have adequate access to the medical care you need to maintain good health.
But let’s discuss more below!
Explanation of the importance of choosing a health plan as a new adult
Choosing a health plan is an important decision that can have a significant impact on your health and finances. Without a health plan, a visit to the doctor or a hospital can be incredibly expensive.
In addition, a health plan can provide you with access to preventive care, which is crucial for maintaining good health. It can also help you save money by covering a portion of your medical costs – which can often help us stay out of debt.
By choosing a plan that fits your needs, you can ensure that you’re getting the care you need at a hopefully affordable price.
Yes, health insurance is not always cheap, and in many cases, you get what you pay for which is why, again, it is so important to do your own due diligence.
II. Assess Your Health Plan Needs As A New Adult
Before choosing a health plan, it’s important to assess your healthcare needs. This can help you determine what type of plan will work best for you. Consider the following:
Determine what kind of healthcare you will need
Think about the types of medical services you’re likely to need in the near future. Do you have any chronic conditions that require ongoing care? Are you planning to start a family? Do you need specialist care? By assessing your healthcare needs, you can choose a plan that will provide you with the coverage you need.
Consider your current health status and any pre-existing conditions
Your current health status and any pre-existing conditions can impact the type of plan that will work best for you. Some plans may offer more comprehensive coverage for certain conditions, while others may not cover them at all. By understanding your current health status and any pre-existing conditions, you can choose a plan that provides the coverage you need.
Anticipate any major life changes that may impact your healthcare needs (e.g. planning to start a family)
Anticipating any major life changes that may impact your healthcare needs is also important. For example, if you’re planning to start a family, you may need a plan that offers maternity care. If you’re planning to move or change jobs, you may need to consider how your healthcare needs will change.
III. Understand the Different Types of Health Plans
Overview of the most common types of health plans
There are several different types of health plans available, including HMOs, PPOs, EPOs, and POS plans. Don’t worry if you have never heard of any of these. That is what this post is for – to make you aware of some of your potential health plan options to choose from as a new adult.
Here’s an overview of each type:
HMO (Health Maintenance Organization)
HMOs typically require you to choose a primary care physician who will coordinate your care. You may be required to get a referral to see a specialist. HMOs generally have lower out-of-pocket costs, but you may have limited choices when it comes to providers.
PPO (Preferred Provider Organization)
PPOs allow you to see any provider in the network without a referral. You may also have the option to see providers outside the network, but you may have to pay more. PPOs generally have higher out-of-pocket costs, but you may have more choices when it comes to providers.
EPO (Exclusive Provider Organization)
EPOs are similar to PPOs, but they generally have a smaller network of providers. You may be required to choose a primary care physician and get a referral to see a specialist.
POS (Point of Service)
A Point of Service (POS) plan is a combination of an HMO and a PPO plan. Like an HMO, you choose a primary care physician and generally need a referral to see a specialist. However, like a PPO, you also have the option to see out-of-network providers, but at a higher cost. With a POS plan, you’ll generally pay less out-of-pocket for in-network care, but you’ll also have more flexibility to choose providers outside of the network.
HDHP (High Deductible Health Plan)
HDHPs are typically associated with a health savings account (HSA) and have higher deductibles than other plans. These are usually one of the most common plans you hear people talk about in the realm of preparing for retirement and considering tax advantages.
Simplified Pros and Cons Chart
Here’s a more simplified pros and cons chart to quickly highlight the different types of health plan options that are out there for new adults to select.
| Pros | Cons | |
| HMO | – Lower out-of-pocket costs – Comprehensive coverage – PCP serves as a gatekeeper for coordinating care | – Need for referrals to see specialists – Limited choice of healthcare providers outside the network |
| PPO | – More flexibility in choosing healthcare providers – No need for referrals to see specialists – Option to see providers outside the network | – Higher premiums and deductibles – Higher out-of-pocket costs for out-of-network services |
| EPO | – Lower out-of-pocket costs for in-network services – No need for referrals to see specialists | – Limited coverage for out-of-network services – No coverage for services received outside the network, except for emergencies |
| POS | – Choice of in-network and out-of-network providers – Lower out-of-pocket costs for in-network services – PCP coordinates care | – Higher out-of-pocket costs for out-of-network services – Need for referrals to see specialists |
| HDHP | – Lower premiums – Option to save pre-tax money in an HSA – Ability to carry over unused HSA funds | – Higher deductibles and out-of-pocket costs – Limited coverage until the deductible is met |
Read More: Here’s another breakdown of the health plan types from Aetna.
Tips for choosing the right type of health plan for your specific needs
When choosing a health plan, it’s important to consider your individual needs and preferences.
Here are some tips to help you choose the right type of plan for you:
- Consider your current health status and any pre-existing conditions. Again, if you have a chronic condition or require regular medical care, an HMO or POS plan with coordinated care may be a good fit. If you’re generally healthy and don’t anticipate needing a lot of medical care, a PPO or EPO plan with more flexibility may be a better choice.
- Look at the provider networks. Make sure the plan you choose has a network of providers that you’re comfortable with and that are convenient for you to access. If you have a preferred doctor or specialist, make sure they’re in the network.
- Think about your budget. Consider not only the premium cost but also the deductible, copays, and coinsurance amounts. Make sure you can afford the plan you choose.
- Anticipate any major life changes. This is extremely important. If you’re planning to start a family or have other major life changes coming up, consider how your healthcare needs may change and choose a plan that can accommodate those changes. You would want to consider a health plan that caters toward maternity and prenatal care if you’re thinking of starting a family soon.
Importance of looking beyond the premium cost
When choosing a health insurance plan, it’s crucial to look beyond just the premium cost. While premiums are an important factor to consider, they are not the only determinant of the overall value and suitability of a health insurance plan. Here are some key points to keep in mind:
Out-of-pocket costs
In addition to the premium, you need to consider other out-of-pocket costs, such as deductibles, copayments, and coinsurance. These costs can significantly impact your budget and can vary widely among different health insurance plans. A plan with a low premium may have higher out-of-pocket costs, while a plan with a higher premium may have lower out-of-pocket costs. You need to carefully evaluate the balance between premiums and out-of-pocket costs to determine the true cost of the plan.
Network of providers
Health insurance plans typically have networks of healthcare providers, including hospitals, doctors, specialists, and pharmacies, with which they have contracts.
It’s important to review the network of providers and check if your preferred healthcare providers are included.
If you have specific healthcare needs or require specialized care, ensure that the plan you choose has an adequate network that meets your requirements. Going out of network can result in higher costs or may not be covered at all unless it’s an emergency.
Coverage of services
Different health insurance plans may cover different services and treatments and have varying levels of coverage for preventive care, prescription drugs, mental health services, maternity care, and other specific services. It’s important to review the coverage details of each plan to ensure it aligns with your healthcare needs.
For example, if you require regular medications or have a pre-existing condition, make sure the plan covers your prescription drugs and provides adequate coverage for your condition.
Plan restrictions and limitations
Health insurance plans may have restrictions and limitations, such as requirements for referrals to see specialists, prior authorization for certain procedures, or limitations on coverage for certain treatments or therapies.
It’s essential to review and understand these restrictions to avoid unexpected surprises when seeking healthcare services. Consider your healthcare needs and preferences when evaluating plan restrictions and limitations.
Read More: 16 Financial Terms Every New Adult Should Understand
Consider the indirect health plan benefits
Additional benefits
Some health insurance plans may offer additional benefits, such as wellness programs, telehealth services, or dental and vision coverage. These benefits can add value to the plan and may save you money on out-of-pocket expenses.
Be sure to review the additional benefits offered by each plan and consider their value in relation to your healthcare needs.
Customer service and support
Health insurance can be complex, and it’s essential to have access to reliable customer service and support. Consider the quality of customer service, ease of communication, and responsiveness of the insurance company when evaluating health insurance plans.
Good customer service can be invaluable when you need help with claims, billing issues, or understanding your benefits.
IV. Take Action
Tips for enrolling in a health plan
Once you’ve chosen a health plan, it’s important to take action and enroll in the plan. Here are some tips for enrolling in a health plan:
Understand the enrollment period: Most health plans have a specific enrollment period, during which you can enroll in the plan or make changes to your coverage. Make sure to understand the enrollment period and deadlines for enrolling.
Gather the necessary information: Before enrolling in a health plan, you’ll need to have certain information on hand, such as your social security number, employer information, and information about any dependents you’ll be enrolling.
Enroll online or by phone: Most health plans allow you to enroll online or by phone. Follow the instructions provided by the plan to enroll.
Ask for help if needed: If you need help enrolling in a health plan or have questions about the enrollment process, don’t hesitate to reach out to the plan’s customer service department for assistance.
What to do if you need help or have questions
If you need help or have questions regarding your health insurance, it’s important to know who to contact and what steps to take. Here are some tips to help you navigate the process:
Contact your insurance provider: If you have questions about your health insurance plan or need assistance with enrollment, coverage, claims, or other related matters, the first step is to contact your insurance provider.
You can find their contact information on your insurance card or on their website. Many insurance providers also have customer service hotlines that you can call for assistance.
Review your plan documents: Your health insurance plan documents, including the Summary of Benefits and Coverage (SBC) and the plan’s Evidence of Coverage (EOC), contain important information about your coverage, benefits, and limitations. Review these documents carefully to understand what is covered under your plan and what your financial responsibilities may be.
Consult with your healthcare provider: Your healthcare provider can also be a valuable resource if you have questions or concerns about your health insurance coverage. They can help you understand what services are covered, provide information on in-network providers, and help you make informed decisions about your healthcare.
Utilize online resources: Many health insurance providers have online portals or websites that offer resources and information about your plan. You can access your plan details, check claims status, find in-network providers, and learn about your coverage options.
Additionally, there are many reputable online resources that provide information about health insurance, such as government websites and non-profit organizations.
Remember, it’s important to be proactive and advocate for yourself when it comes to your health insurance. This is your health plan and you are the adult in charge!
Read More: Developing An Emergency Fund is Essential – Here’s How To Do It
How to stay on top of your healthcare needs and adjust your health plan as needed
Once you have chosen a health insurance plan, it’s important to stay on top of your healthcare needs and periodically assess if your plan is still the best fit for your evolving needs.
Here are some tips to help you stay on track and make adjustments as needed:
Keep track of your healthcare expenses: Maintain records of your healthcare expenses, including bills, receipts, and explanations of benefits (EOBs). This will help you track your out-of-pocket costs, monitor your healthcare spending, and identify any potential discrepancies or errors.
Tip: Consider keeg your records in a designated and privacy-protected folder online so you can access them easily and securely from anywhere.“
Review your healthcare usage: Periodically assess your healthcare usage and needs. Are you visiting the doctor more frequently? Do you have new healthcare requirements or conditions? Have your medication needs changed? Understanding your healthcare usage patterns will help you evaluate if your current plan is still meeting your needs or if you need to consider other options.
Stay informed about plan changes: Keep yourself updated about any changes to your health insurance plan. This includes changes in coverage, benefits, copayments, deductibles, and network providers. Read through the annual notice of changes (ANOC) and other plan communications to stay informed about any modifications to your plan.
Know when you can change your plan: Understand the rules and timelines for changing your health insurance plan. Typically, you can only make changes during the annual open enrollment period or during a qualifying life event, such as getting married, having a baby, losing your job-based coverage, or moving to a different state.
Be aware of these opportunities to review and adjust your plan to better suit your changing life circumstances.
Stay proactive with preventive care: Prevention is key to maintaining good health and avoiding costly healthcare expenses in the long run. Take advantage of the preventive care services covered by your health insurance plan, such as vaccinations, screenings, and wellness visits.
By staying proactive with preventive care, you can catch any potential health issues early and take steps to address them before they become more serious and costly.
V. Conclusion
In conclusion, navigating the healthcare system as a new adult can be challenging, especially when it comes to health plan selection. However, with the right information and resources, it doesn’t have to be overwhelming.
By taking the time to understand your healthcare needs, choosing the right health plan, and being proactive in managing your care, you can make the most of your adult healthcare experience.
Remember to prioritize preventative care, be an informed consumer of healthcare services, and always advocate for your health needs.
We hope this guide has been helpful in getting you started on your healthcare journey as a new adult, and encourage you to check out our other blog posts for more helpful tips and insights.
And Remember,
Adulting Starts Here
Thanks for reading! If you saw any value in this article, please share it with others. Adulting Starts Here is all about making adulting 101 easier. So share the information – help increase access.
Disclosure: This post may contain some referral links, if you follow them and purchase anything from the recommended services/products, I might receive some commission. I can assure you though that I would never recommend something I don’t trust myself. Additionally, I am not a financial advisor. Please do your own research and proper due diligence to determine what is best for you. Thanks for supporting Adulting Starts Here!
