People often ask which health insurance plan is the best, so they can be sure of choosing the right coverage. This is a testament to the complexity of the health insurance marketplace –- Americans have access to so many different health plans that it can be hard for us to choose just one as being the “best”.
Each year, U.S. News & World Report compiles rankings on the best health insurance plans in the country. However, there is no such thing as a one-size-fits-all insurance plan that is best for everyone. Health insurance plan rankings may make a good starting point, but it should never be the only place you look for your ideal plan.
Here’s why:
- There is no guarantee that a plan that is available today will be available tomorrow, so it is possible that you may no longer be able to buy the #1 plan;
- Even if the plan is still available, benefits can change at any time, which would make the rankings meaningless;
- Some insurance companies offer completely different plans with very similar names, so the results may confuse readers;
- Ranking results tend to be survey-based and not data-based, so they are very subjective and have more to do with a consumer's opinion of his plan than the actual coverage offered by the plan;
- One man's comprehensive coverage is another man's waste of money. This is perhaps the most important reason why rankings should be taken with a grain of salt -- people want different things from their insurance plans, so a "high" ranking plan may be perfect for one person, but all wrong for another.
- U.S. News & World Report ranks health plans nationwide. But what good does it do to know that (for example) a Blue Cross Blue Shield plan in New Hampshire ranks very high if you live in Florida? Only people living in New Hampshire could buy that plan.
Instead of relying solely on plan rankings when deciding on your coverage, think about exactly what benefits you need. Someone who does not have any pre-existing health conditions may decide that a plan with low premiums and catastrophic coverage is exactly what she is looking for, while someone else may want a more comprehensive plan with prescription drug coverage, mental health benefits, and lower deductibles. Also, before buying, be sure you understand exactly what costs you will need to pay out-of-pocket, including co-pays, co-insurance, and deductibles.
Your state’s insurance commissioner can help you identify insurers you can buy from. Also, an insurance agent can help you narrow down your options.
Source:
U.S. News & World Report. ”Best Health Plans,” 2007.
