Insuring your health becomes more and more expensive each year because the medical costs are going up steadily regardless of the economical situation. If you don't want to pay too much for health plans, the first thing you have to understand is that knowing the basics is a must. Only this way you will be able to choose the right policy and get the adequate coverage for the money you're paying.

What plans are offered?

Health insurance comes in two kinds: indemnity plans and managed care plans (that are comprised of HMOs, PPOs), and POS).

Indemnity plans give you the total freedom of choosing a doctor to visit and your coverage is calculated according to your actual visits and types of services you receive.

Managed car plans usually provide broader coverage options but have specific restrictions on where you will get your services. There's always an agreement between the provider and a network of healthcare facilities you may get your services from and get covered. And if you choose to visit a doctor outside this network you will typically get denied of coverage or get covered to a lesser extent.

Regardless of which plan type you want to buy, you should make sure that it includes the necessary coverage options.

What needs to be covered?

An insurance plan that can be evaluated as good should include the following types of coverage:

• Hospital expense that will cover everything connected to hospital care.

• Surgical expense that will pay for all the expenses connected to surgery.

• Physicians' expense that will cover doctor visits either in office or a hospital.

• Lab coverage that will pay for most routine tests including X-Rays

What should also be considered?

When looking for health insurance you might also want to look for the following elements to be included:

• Prescription drugs

• Preventive care

• Mental health benefits

• Maternity care

• Vision care

• Dental care

• Chiropractic coverage

How much will it cost?

Besides the monthly premium that is easily evaluated by using health insurance quotes when shopping around you will also have to cover additional out-of-pocket expenses that vary across plans. This may push up the overall cost of health insurance, especially if you have family members who are going to the doctor quite often. So it is very important to see if your plan has any provisions regarding the following out-of-pocket costs:

• Co-payment: a specific amount of money you will have to pay for each doctor visit (can vary across different providers and healthcare facilities).

• Deductible: the amount of money you will have to pay for the medical services out of own pocket before the insurance coverage kicks in (usually applied to indemnity plans).

• Coinsurance: the share of your medical expenses after reaching the levels of deductibles if there are any.

Where to buy health insurance?

The most obvious and direct way of getting a plan is to contact your insurance agent or an insurance provider directly and purchase an individual insurance plan. That will give you a lot of room for customization but on the other hand will turn out to be comparatively expensive.

You can search for a group insurance plan. Most employers provide group insurance options for their workers at affordable rates. The downside is that you won't be able to customize your plan according to your personal needs and will get the coverage that everyone else is getting.