Tips & Selecting Texas Health Insurance

1. State of Texas Regulated Prices: There is really no need to go to multiple websites for quotes if you go to a website that has all the Major Health Insurance Carriers Plans listed. All insurance plan prices are regulated by the state of Texas Department of Insurance, so all quotes should be the same. If someone gives you lower rate quotes, the plans they are quoting may be lacking coverage in some area. Ask the broker what benefit has been reduced to get the lower rate quotes. If you do go to multiple sites for quotes, you could end up being bombarded with telephone calls from salesmen. Many of the sites do not sell insurance, but sell your information. Health Insurance eStore does not sell, rent or share any information and we are state-licensed.

2. Policy Maximum: Some plans in Texas have a policy maximum is only $500,000.00 or less! This is not much health insurance. In the present state of escalating healthcare costs, one serious trip to the hospital could bankrupt you. Medical bankruptcy is the leading form of bankruptcy today. You should be looking for a plan that has at least $2,000,000 policy maximum.

3. Understand Plan Limits:Some of the lower cost plans in Texas do not cover prescription drugs or have a limit on the prescription drugs. It is important to understand any limitations a plan has as you balance risk and budget. Also keep in mind that a limited policy is better than no insurance. In order to make a plan less expensive benefits are often reduced. Ask the broker to explain what benefits the cheaper plan is limiting or excluding. The limited benefit may not be of value to you and you can save money on your premium. On the other hand you may be counting on a benefit and you do not want to be surprised when you have a claim.

4. Consider HSA Type Health Insurance Rather Than Copay: You can lower your health insurance cost and save money on your income taxes at the same time. The HDHSA concept is simple; you pay for expenses below the deductible at a discounted rate with your HSA account. Ask your tax preparer or CPA about the HSA tax advantages for you.

5. Choose An Independent Broker: If you choose an independent broker that represents all the major carriers in Texas, the broker then becomes your consultant. Since they represent many companies, it does not make a financial difference to them which one you choose. Their whole focus can then be on your needs and expectations. Independent Brokers do not charge for their service, it's free to you.

Choosing Your Health Insurance Plan

Health Insurance is something we purchase to reduce our financial risk should we have illness or injury. The more risk you ask the insurance company to pick up, the more expensive the policy will be. The key financial balance in a health plan is to determine how much risk you can handle on your own without financial disaster and let the insurance company cover the rest. As your income and savings increases, you may want to look at covering more risk yourself. Increasing your deductible and putting the premium difference in savings. This is where HSA type insurance can really be a benefit.

Maximum Out of Pocket or Stop Loss is important. It is best not to have any gaps that you cannot cover yourself. Your past health history is never an indication of future events. Anyone can get involved in a car accident or be stricken with a disease. Personal bankruptcy is often a result of a medical problem or accident.

When comparing one plan to another or before deciding "What do I really need", consider the following points:

• Value: Value is not the cheapest, but what you get for your hard earned money. When one plan is cheaper than another, it often does not cover something or has limitations. Look for and understand what it is not covered and what is covered.
  
  
• Necessity: One way to hold down cost is to get a plan with only what you need and not pricey extras that you may not use.
  
  
• Understand the Gaps: Understand any gaps and determine if you can financially cover these gaps.
  
  
• Financial Viability: Ensure that short term savings don't mean future higher expenses and financial hardship. A plan with limitations will save you money today in premium, but could cause financial ruin if there were a major medical event. Having said that, limited health insurance is better than no health insurance.

Maximum Out-Of-Pocket/Stop Loss

Probably the best place to start is "Maximum Out of Pocket / Stop Loss". Maximum Out of Pocket is simply the amount you will have to pay if something medically significant happens. How much available cash do you have to cover medical expenses should something happen? The higher the "Maximum Out of Pocket Stop Loss", generally the lower the premium. A lower premium will free up more money to put in a savings account. The "Max Out-Of-Pocket" refers to the most that you will pay in deductibles and coinsurance in any given year, no matter how large your medical bills are (up to plan maximums, of course). Your plan should have the "Max Out-Of-Pocket" and "Coinsurance Stop Loss" stated clearly. We can help you design a plan where the Max Out-Of-Pocket" and "Coinsurance Stop Loss" will not only be clearly stated but you will have a say in what the amount is.

What Is Your Budget?

Once you determine you're "Stop Loss", then we will look at what you can spend monthly. Designing a plan that you can't afford will not do anyone any good. On the other hand, choosing an inexpensive plan with gaps that may bring financial hardship is not the answer either. At the Health Insurance eStore we carry a variety of options to get you the most coverage for your budget.

Every Individual and Family Has Different Needs

Some people have a house full of children, others don't. Some people travel quite a bit, others stay close to home. There are a number of situations to evaluate when making a decision of what is proper for you. Also, consider your lifestyle while shopping for health plans. Consider your personal medical history and your family; including hereditary issues. Ask yourself the following questions:

• What am I hoping to achieve with my health plan?
  
  
• How do I plan to use my coverage?
  
  
• How long do I need this plan?
  
  
• In order to save on premium, how much of my medical expenses am I willing to cover myself?
  
  
• Are there conditions in my family history that NEED to be covered?

Policy Maximums

All true insurance plans have policy maximums. The plan maximum refers to the most an insurance plan will pay in total, no matter what the circumstances are. Some plans have individual lifetime maximums, some have family lifetime maximums and some have annual maximums for either the family or per individual. In the present state of escalating healthcare costs, you should be looking for a plan that has the highest maximums that you can find. It is our strong recommendation that you cover your family with at least $2,000,000 per person. Two million dollars per person will go a long way towards ensuring that you and your family are protected now and for years to come.