Finding the “Why” Behind the Cheapest Insurance in the Phoenix Area
It’s smart to take your budget into account when shopping for
individual health insurance. However, be sure you know the details behind the lower cost insurance plans before you sign on the dotted line.
Choosing the cheapest insurance plan could end up costing you thousands of dollars more in deductibles, copays or other costs. Before you choose the cheapest insurance plan, ask the plan provider or your insurance broker questions like the ones we’ve listed here.
Are There Missing Coverage Components in the Plan?
Sometimes insurance plans are cheaper because they’re missing key coverage components. For instance, the plan might not cover maternity care or psychiatric care.
Or, it might exclude dental or vision care. Look into the coverage details of the plans you’re considering before making a purchase decision. If a plan excludes a coverage component you may end up needing, it’s probably not worth the risk.
Is There a Maximum Amount the Plan Would Pay Out?
Some insurance plans include maximum payouts per benefit. For instance, you might have a limit or cap on a specific surgery. Or, there may be a calendar year maximum or lifetime maximum on certain policies.
Although the Affordable Care Act has eliminated annual and lifetime limits on the government health plans, there can still be some limits on some of the private plans.
You can call our customer service line at 602.617.4107 for more information on coverage limits.
What Kind of Network is the Plan Part of?
Insurance plans must be a part of a network, but there are several networks to choose from such as:
- PPO (Preferred Provider Organization)
- EPO (Exclusive Provider Organization)
- HMO (Health Maintenance Organization)
- POS (Point of Service)
- HDHP (High Deductible Health Plan)
There are many differences between the varying networks, and each includes benefits (and detriments) that are too numerous to explain here.
However, the type of plan you choose is important and could impact you financially. For instance, PPO plans typically offer a broader coverage arena while POS plans are typically more limited.
And HDHPs typically require a large out-of-pocket deductible before benefits kick in. You’ll want to know what type of plan best suits your individual situation before choosing an insurance plan.
Our knowledgeable client representatives can help you understand the various types of health insurance networks, so that you can choose the right network plan for your needs.
Does the Plan Have a Term Limit?
Some of the cheapest health insurance plans are short-term health plans. These types of plans differ from the more common “major medical” plans that provide broader, long-term health care coverage.
In most cases, short-term health insurance plans are only a good option if you’re in between major medical plan options, such as if you’re moving from one job to another.
Short-term plans are often sold in 3, 6, 9 or 12-month terms. However, these types of insurance plans also carry limits that could neglect vital health care coverage for you and your family.
We can tell you whether a short-term insurance plan is a good option for you, or whether you’d be more safely covered with a major medical plan.
Does the Plan Exclude Pre-Existing Conditions?
Another potential downfall of cheaper health insurance plans in Arizona is that they often exclude pre-existing conditions.
It’s important to view and understand a health care plan’s Exclusions section before you purchase insurance under the plan.
Believe it or not, the term “pre-existing conditions” doesn’t only apply to major medical conditions such as Diabetes. Insurance companies can count seemingly minor health issues such as acne, asthma or obesity as a pre-existing condition too.
Also, psychiatric ailments such as anxiety and depression often count as pre-existing conditions.
Do you or a family member have any type of pre-existing condition? If so, you may find yourself short on coverage for important necessities if you choose an insurance plan based on cost alone.
This could result in massive out-of-pocket costs for you and your family. Be sure to do your research on what health issues in your family might be listed as pre-existing conditions.
Our broker representatives can help you determine whether health issues your family suffers from would be counted as a pre-existing condition.
Summary
While saving money on your health insurance plan is important, it shouldn’t be your main source of consideration when you shop for health insurance in Arizona.
The most important consideration should be finding the plan that best fits you and your family’s insurance needs. Where health insurance is concerned, being an informed consumer is paramount to saving money.
In addition, the money you’ll save in the long run by choosing the insurance plan with the best coverage for your needs will likely be a much bigger number than what you’ll save by going with the cheapest plan. This is why knowing the details on each plan is so important.
Our health insurance experts will give you a free consultation that will help you determine what the best insurance coverage plan is for you. Call AZ Health Insurance Brokers today at 602.617.4107 for more information on the various health insurance plans.
We’ll help you find the cheapest health insurance in Phoenix and surrounding areas, while working to ensure you get the right coverage for all of your health needs.
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