How to pick a health plan: do everything possible to make an informed decision.

• Author: Perry, Vicki F.
• Position: Advice

Many people who receive health insurance coverage from their employer have multiple plans from which to select. Which of the plans offered by your company is right for you and your family?

In general, people are interested in having good benefits with the lowest out-of-pocket expense possible, with limited paperwork to fill out. People also want a plan that provides access to their primary-care physician and any specialists they regularly see, as well as their preferred hospital.

If your employer is sponsoring one or more healthcare plans, chances are the employer is comfortable with the premium being charged, the service reputation and the financial stability of the insurance company or HMO that is providing the plan benefits. But not all insurance companies or HMOs are the same, and the plans being offered can be quite different.

Factors to consider. Most plans will offer a standard list of benefits and features, but the specifics may vary. Are you interested in preventive care? Does the plan require a deductible? What coinsurance percentage or copay will be your responsibility? What is the annual out-of-pocket maximum, if any? What is the lifetime benefit maximum?

The size, composition, age and health history of your family will often determine what services are most important to you. Unfortunately, no one can accurately predict what your family health-care needs might be for the next year. But, good questions to ask yourself include:

* What services have you had in the past?

* How much did these services cost?

* What services do you anticipate needing in the next year?

Answers to these questions will help you determine which plan is best for you.

Adding up the cost. To arrive at...