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Personal insurance · Coverage explainer

Health Insurance

Health insurance is the most complicated personal-lines policy out there, and the consequences of getting it wrong are immediate. Pick the right plan and a hospital visit is a $300 problem. Pick the wrong one and it's a $30,000 problem.

01/ The basicsSection 01 of 05

What it is.

Health insurance is structured around four numbers: premium (what you pay every month), deductible (what you pay before the plan pays), copays / coinsurance (your share at the point of service), and out-of-pocket maximum (the cap on what you can pay in a year).

We help clients with three main situations. (1) Individual and family plans, usually through the ACA marketplace or directly with a carrier. (2) Medicare supplement and Medicare Advantage plans for clients turning 65 or already enrolled. (3) Small group plans for businesses with employees.

The right plan depends on your usual health spending, your providers, and whether you can absorb a high-deductible if it never gets used. Below is what each piece of a typical policy actually does, the network distinctions that bite people, and how Medicare timing actually works.

Who needs it

Anyone not covered by an employer plan, anyone aging into Medicare at 65, anyone losing coverage after a job change or COBRA expiry, and any small business that wants to offer benefits.

02/ CoveragesSection 02 of 05

What it covers.

Each policy is a stack of named coverages. Required parts are mandated by state law. Recommended parts are what we put on most policies. Optional parts depend on your situation.

Required01

Doctor Visits and Specialists

Primary care, specialists, urgent care. Each has a copay or coinsurance after the deductible. In-network providers cost dramatically less than out-of-network. Always confirm your doctor is in-network before you pick a plan.

Required02

Hospital and Inpatient

ER visits, inpatient stays, surgery. Subject to the deductible and your coinsurance percentage (typically 20% to 40%) up to your out-of-pocket max. ER use is heavily penalized by some plans, so know your urgent-care vs ER copays.

Required03

Preventive Care

Annual physicals, immunizations, screenings (mammograms, colonoscopies, etc). Required by ACA to be covered at 100% with no cost-sharing on most plans. Use this. It's the cheapest part of the policy.

Required04

Prescription Drugs

Most plans use a tiered formulary (generics, preferred brand, non-preferred brand, specialty). Each tier has a different copay or coinsurance. If you're on an expensive specialty drug, the formulary matters more than the premium.

Required05

Maternity and Newborn

Required to be covered on ACA-compliant plans. Specific cost-sharing varies. Check the plan's hospital coinsurance because deliveries can hit the out-of-pocket max fast.

Required06

Mental Health and Substance Use

Required to be covered at parity with medical. Therapy, psychiatry, inpatient treatment. Network access varies wildly by plan, so confirm in-network providers in your area.

Recommended07

Dental

Almost never included in standalone health plans. Available as a separate policy or rider, typically $20 to $50 a month. Two cleanings a year and a portion of major work covered.

Recommended08

Vision

Annual exam, frames, contact lens allowance. Usually a separate policy, $10 to $20 a month. Worth it if you wear glasses.

Optional09

Medicare Supplement (Medigap)

For clients on Medicare. Fills in the gaps Original Medicare leaves (deductibles, copays, the 20% Part B coinsurance). Plans G and N are the most common options for new enrollees.

Optional10

Medicare Advantage

An alternative to Original Medicare bundled with prescription, dental, vision, and sometimes gym memberships. Network restrictions apply. Choosing between Advantage and Medigap is the big Medicare conversation. AJ walks you through it.

03/ In practiceSection 03 of 05

When it kicks in.

Real situations we see in the agency. The point is to show how each layer of coverage maps to actual life, not to scare you.

Scenario 01

Switching jobs with a 60-day gap

COBRA from your old employer is available but expensive. ACA marketplace usually has a Special Enrollment Period triggered by loss of coverage, with subsidies based on projected income. We compare both.

Scenario 02

Self-employed couple, no employer coverage

ACA individual plans are the default. Subsidies (Premium Tax Credits) are based on Modified Adjusted Gross Income. We check the calculator before recommending a plan because subsidies dramatically change which plan is the best deal.

Scenario 03

Turning 65 in 6 months

The Initial Enrollment Period is 7 months wide (3 before, the month of, 3 after). Missing it can cost you a lifetime late-enrollment penalty. We start the Medicare conversation 6 months out.

Scenario 04

Family with one chronic condition

If a family member is on a brand-name specialty drug, premium is usually NOT the right optimization variable. We look at formularies, drug-tier costs, and out-of-pocket maxes first.

Scenario 05

Small business adding first health benefit

Group plans require minimum participation (usually 70% of eligible employees). For very small teams, a Qualified Small Employer HRA (QSEHRA) or ICHRA may be a cleaner alternative. We model both.

04/ GlossarySection 04 of 05

Key terms.

Plain-English definitions. The vocabulary insurance carriers assume you already know.

01Premium
What you pay every month, whether or not you use the plan.
02Deductible
What you pay out of pocket before the plan starts paying. High-deductible plans have lower premiums and higher deductibles, and pair with HSAs.
03Out-of-Pocket Maximum
The most you'll pay in a plan year before the carrier pays 100%. ACA-compliant plans have legal caps. This is the worst-case-scenario number.
04Network (HMO vs PPO vs EPO)
HMO: smallest network, requires referrals, cheapest. PPO: largest network, no referrals needed, most expensive. EPO: in-network only but no referrals required. Network is the most underrated variable.
05HSA / FSA
HSA: tax-advantaged savings account paired with a high-deductible plan. Money carries over year to year. FSA: similar but use-it-or-lose-it. HSAs are one of the most underused tax shelters in the country.
06Special Enrollment Period
Outside open enrollment, you can only enroll if you have a qualifying life event: marriage, birth, loss of coverage, move. Has a 60-day window from the event.
05/ FAQSection 05 of 05

Common questions.

Questions clients ask before they get on the phone with AJ. If yours isn’t here, just call.

  • ACA marketplace: usually November 1 to mid-January. Medicare Annual Enrollment: October 15 to December 7. Employer plans: set by your employer. Outside those windows you need a qualifying life event.

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Independent agencyEst. 2017Fairfield, Connecticut35+ A-rated carriersLicensed in 11+ states