To make your understanding of health insurance easier, health insurance plans are divided into the following “metal” categories:
- Platinum (highest monthly premiums): Your health insurance plan pays 90 % of medical care costs, while you pay 10 %.
- Gold: Your health plan pays 80% on average of medical care costs. You pay about 20%.
- Silver: Your health plan pays 70% on average, whereas you pay 30%.
- Bronze (lowest monthly premium): Your health insurance plan pays 60% of medical care costs, while you about 40%.
All these health insurance plans pay different amounts of the total medical costs. This takes into consideration the health insurance plan’s premiums, deductibles, coinsurance, co-payments, and our-of-pocket maximums.
Factors to consider when choosing a health insurance plan
In order to select a suitable health insurance category, assess your medical and health care needs. At the same time, make a fair assessment of your financial situation.
If you expect to frequently visit a doctor or require regular prescription drugs, you should choose a platinum or gold plan. These insurance plans pay a higher percentage of your medical costs, despite having higher monthly premiums.
However, you should opt for a silver or bronze plan if you don’t expect to need regular medical services or prescriptions. Both these health insurance plans have lower monthly premiums, as compared to gold and platinum. But, you will have to pay more for healthcare services when needed.
Remember, even if you are healthy and do not anticipate medical services in future, people do fall sick or have accidents. Hence, you might end up with excessive medical expenditure if you have a bronze or silver plan. Make sure to take into account your risk tolerance for choosing a plan.
Furthermore, silver health insurance plans may offer the best value if you qualify to save on out-of-pocket costs.
When it comes to choosing a health insurance plan, select the one that caters to your budget, income and your anticipated needs.
No matter which plan you choose, remember that these plans only determine the amount of expenditure that you and your insurance provider will share. In terms of service, they cover the same type of medical benefits.
Want to invest in the right health insurance plan? Contact Affordable Health Insurance in NY. We offer various categories of health insurance from multiple health insurance carriers in New York City for you to choose from.