Seven Factors to Help Your Health Insurance Rates

Consumers face broad and often bewildering choices in today's health insurance marketplace. These seven factors,which include whether you opt for a group plan over an individual plan, where you live or whether you are willing to use pre-designated health care providers, could help determine whether your next health insurance quote will send you to the emergency room.

1. Group vs. Individual Coverage

You'll benefit from group discounts if you obtain group coverage through an employer, alumni association, professional association, or other group such as the American Association of Retired Persons, rather than individual coverage. According to the Health Insurance Association of America, 90 percent of people with private coverage have it through a group.

2. You Pay for Choice

There are two major types of health care coverage: managed care plans and fee-for-service type plans. Managed care plans come in three broad categories: Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), and Point of Service Plans (POS).

Managed care plans encourage members to use health care providers who belong to their plan and will typically charge you more if you go "out of network." With HMOs, typically you must choose a primary care physician who coordinates your health care from a member list. PPOs and POS plans offer more flexibility than HMOs, but generally charge higher premiums. Or, you may choose fee-for-service type coverage. With fee-for-service plans, you choose your own doctor and submit claims for reimbursement to your insurer for covered expenses. Fee-for-service coverage offers more flexibility than managed care plans and tends to cost more.

3. The Amount of Your Deductible