If you are purchasing health insurance in today’s poor economy then here are 5 five things which you must look out for.

1. Does your health plan give you cover both on and off the job?

A lot of health insurance plans contain specific exclusions which wipe out your benefits for anything which could have been covered by Workers Compensation or similar laws. Now stop and read that last sentence again and pay close attention to the phrase ‘could have been covered’. That’s correct, most self employed people and even some small business owners don’t carry Workers Compensation on themselves.

There are specific insurance plans which will cover you on and off the job 24 hours a day, as long as the law doesn not require you to have Workers Compensation coverage.

2. Are you writing off your health insurance premiums?

Independent contractors (1099′s), home based business owners, professionals and many self employed individuals are not taking advantage of the current tax laws.

A lot of people who are paying all of their own costs are permitted to deduct their monthly insurance payments. This by itself can lower your net out-of-pocket costs by as much as 40%. Ask your accountant whether you are eligible or take a look at the IRS website to get more information.

3. Look closely at a plan’s internal limits

All health insurance plans use some sort of internal controls which determine how much they is prepared to pay out for a particular procedure or service. Here there are two basic methods:

A. Scheduled Benefits

A lot of policies, some of which are marketed specifically to self employed and independent people, have a clear schedule of what they will pay per doctor office visit, stay in hospital or even what payment limits are imposed for testing in any 24 hour period. This structure is normally associated with ‘Indemnity policies’. If you are presented with one of these plans make sure that you see the schedule of benefits in writing. It is important that you understand these type of limits because once they have been reached the insurer will not pay any costs above the stated amount.

B. Usual and Customary Expenses

‘Usual and Customary’ refers to the rate of pay out for a visit to the doctor’s office, hospital stay or procedure that is based on what the majority of physicians and facilities charge for that particular service in that geographical or comparable area. ‘Usual and Customary’ charges also represnt the maximum coverage on almost all major medical plans.

4. Remember that you can shop around

As you are reading this you are probably shopping for a health policy.

Each day people shop for everything from food to a new house and during the shopping process price, value, personal needs and general market conditions are evaluated by the buyer. Bearing this in mind, it is very disconcerting that most people never bother to ask how much a procedure, test or even doctor visit will cost. In this ever changing health insurance market it will become increasingly important for these questions to be asked. Asking about price will help you get the most from your policy and reduce your out-of-pocket expenses.

5. Look out for networks and discounts

Nearly all insurance firms work closely with medical networks in order to access discounted rates. In broad terms, networks are composed of of medical professionals and facilities who contract to charge discounted rates for services rendered. In many cases the network itself is one of the defining attributes of your program. Discounts will normally vary from 10% to 60% or even more.

Medical network discounts vary but to ensure that you pay the lowest out-of-pocket expenses, it is imperative that you preview the network’s list of physicians and facilities before committing yourself to a policy. This is not only to ensure that your local hospital and doctors are in the network, but also to see what your choices would be if you need a specialist.

Follow these tips and you will get cheap health insurance that provides you with the level of cover you need.