Confused By Health Insurance Plans? How To Understand The Metal Categories

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When was the last time you evaluated your budget? A few months ago, I took a good, hard look at my finances, and I realized that I was spending a boatload on insurance premiums. I knew that I needed to cut down my spending, so I started talking with my insurance agent. The agent was incredibly kind and caring, and he walked me through a variety of hypothetical scenarios to help me to make things right. I was really impressed with how awesome the experience was, and I was able to save a lot of money on my premiums. This blog is all about reducing insurance costs.


Confused By Health Insurance Plans? How To Understand The Metal Categories

18 June 2016
 Categories: Insurance, Blog

The law requires you to have health insurance. Unfortunately, shopping for health insurance can be confusing, especially if you don't understand the different categories. Each category is named after a specific metal – bronze, silver, gold and platinum. Each category provides different levels of protection. The category you choose will depend on the level of care you require and the budget you have available for payments. Here is a brief description of each category.


Bronze is the first step on the health care ladder. This category comes with the lowest premiums, and the highest out-of-pocket expenses. That means that you'll pay less for your premiums each month, but more for each doctors visit and prescription. If you don't go to the doctor very often, or you can't afford high monthly premiums, the bronze package may be best for you. With bronze coverage, your insurance will cover about 60% of your medical costs, leaving you to pay the other 40% out of your own pocket.


Silver is the second step on the health care ladder. A silver plan will provide you with slightly more insurance coverage than the bronze. However, it will also cost you more each month in premium payments. With this plan, about 70% of your medical care will be paid for, which will leave you responsible for the other 30%.


If you go to the doctor on a regular basis, or require prescription medication on a regular basis, you might want to consider purchasing gold coverage. Premiums for gold coverage are considerably higher, but the out-of-pocket expenses are much less than with the other plans. With this type of plan, insurance will cover about 80% of your medical costs, leaving you responsible for only about 20% of the costs.


If you want the maximum coverage from your health insurance, and you can afford higher monthly premiums, platinum plans are your best option. With a platinum plan, you'll pay high monthly premiums, but your insurance will cover 90% of your medical costs. Platinum plans also provide a more comprehensive coverage, meaning more of your medical needs will be covered under your insurance policy.

Now that it's time to purchase your own health insurance, you need to make sure that you choose the coverage that will work best for you. When choosing your coverage, be sure you take your budget, as well as your medical needs into consideration. If you have questions about policy choices, contact a company like Taylor Insurance Agencies.