Medical plans can sound like they’re written in a foreign language. Learning the lingo — and figuring out which plan to choose — can seem overwhelming. Here are a few simple factors that can help you make sense of it all and choose the best plan for you.

Consider the total health care cost. When it comes to medical coverage, it’s tempting to just look at monthly cost of coverage (“premium”), especially when on a tight budget. But in some situations, you could be paying more in overall costs by not considering the big picture. Where did you spend money on health care last year? Did most of it go toward medications? Routine doctor visits?

Evaluate your medical coverage needs. If you are young, single and healthy, a higher deductible, lower benefit plan might be most appropriate for you. Usually more affordably priced, these plans — sometimes called “catastrophic coverage” — are designed to provide for preventive services (to keep you healthy) and give you a “safety net” in the event of a major illness or injury that could lead to uncontrolled medical bills. However, if you have a family, are considering starting a family or have a chronic health condition, it might be wise to consider a plan with a higher monthly premium and higher level of benefits.

Decide how to spend your health care dollars. Not spending money on health care is rarely an option for long — eventually, you will need medical care. But you do have control over where to spend those dollars. This is basically what you’re doing when you choose a medical insurance plan. Here’s a quick overview:

• Premium. This is how much you’ll pay per month for coverage. Generally, the higher the benefits, the higher the premium. Higher premium/benefits plans work best for people who need medical care or prescriptions frequently because they pay more of the cost for service. But buying a high premium, high benefit plan when you don’t use medical services frequently could be costing you a bundle.
• Deductible. Basically, this is the amount you’ll pay out-of-pocket before your health plan coinsurance kicks in. Generally, the bigger the deductible, the lower the premium. If you’re young, single and healthy, high deductible plans that have a wellness benefit not subject to the deductible (i.e., cover your yearly checkup) will do for you. But if your health is compromised or you have a family, you might need a lower deductible plan.
• Coinsurance. This is the percentage that your plan pays after you’ve met your deductible. They usually look like “80/20,” which means that your plan pays 80% of the cost, while you cover the other 20%. It’s important to keep in mind that because insurance companies negotiate discounts for care with providers, you’ll most likely be paying a percentage of a lower amount than you would’ve been charged if you’d been uninsured.

As a board of the Southern Baptist Convention, GuideStone Financial Resources partners with seminary students, ministers and denominational employees to make available affordable life and health coverage now and throughout your ministry career.

Explore our Web site for more information about GuideStone health plans, help in choosing the right plan or a free online quote.  

GuideStone Financial Resources of the Southern Baptist Convention welcomes the opportunity to share this general information. However, this article is not intended to be relied upon as medical advice, diagnosis or treatment.