Why Buying Florida Health Insurance On Price Alone Is A Mistake

 The number of people buying their own health insurance is expected to reach 20 million in 2010, according to an analysis by McKinsey & Co. With rampant unemployment, it's tempting to just give up and buy a high-deductible plan with the lowest premium available. For better or worse, there's a lot more to think about when comparing Florida health insurance plans than the monthly price tag.

Be sure you are looking at an actual Florida health insurance policy and not a discount plan. Also, be careful to deal with major insurers that have been rated by independent rating organizations, like A.M. Best, for financial stability. While a rating of "A-" or higher doesn't guarantee all of your claims will be paid, it does offer assurance that the company has the financial ability to pay its customers' claims.

Here's What To Ask About Health Insurance In Florida

One of the most important questions to ask is the amount that your out-of-pocket expenses will be limited to, which is known as the maximum out-of-pocket. Here's an example of why that's so important.

When Tina Smith bought a policy, she was impressed by the low premiums and a $2-million lifetime coverage benefit. She did not realize that an annual limit of just $5,000 was lurking beneath that lifetime limit. This plan limited outpatient treatment to $5,000 a year.

When she developed lymphoma, Tina needed $91,000 for imaging scans and other outpatient services. "I'm not health-care savvy, and it didn't occur to me I had to go over this with a fine-tooth comb," she lamented.

Individual Health Insurance In Florida Has No Lifetime Limits

That $2 million lifetime limit was fairly standard, but healthcare reform has put an end to these caps on coverage. Insurance companies can no longer put a limit on the amount of coverage you can receive throughout your lifetime. You'll still need to guard against other types of limits, like the annual limit that resulted in such huge medical debt for Tina.

Also, be sure you understand how a plan's deductible works. You should only have one annual deductible, rather than one deductible per incident which could subject you to much higher out-of-pocket expenses.