"I'm a 24-year old computer consultant, very healthy male, exercise an hour every day, do not smoke, and eat my 5 servings of fresh fruits and vegetables a day.  I don't have health insurance, and haven't needed it, knock on wood.  Can't even remember the last time I went to see a doctor.  But my parents are all over me to get insurance (I make $47,000 a year) so I told them I'd look into it.  What should I look for?"

There are different options available to you.  Depending on where you live, you may qualify for "self-employed" health insurance coverage, which in some cases may be less expensive than individual market policies.

In the alternative, consider an individual market policy.  Because you are young and healthy, passing medical underwriting is not likely to be a problem and you are likely to qualify for a "standard" rate (the lowest premium available for a policy).

Read the fine print

Remember, you get what you pay for! When you look for coverage, make sure it is "major-medical" comprehensive insurance.

•  In addition to determining what it covers, also look at the benefit exclusions, prescription drug coverage, and your out-of-pocket liability, including co-insurance, co-pays, annual deductibles, etc.
• Review the limitations, including annual and lifetime coverage limits. I do not recommend signing up for a policy with less than $1 million in coverage.
• Look for policies that limit your out-of-pocket costs for covered conditions (maximum annual out-of-pocket limitations means that once you spend a specified amount annually on covered conditions and expenses, the insurer waives coinsurance/co-payments and covers the rest).

Also, because you are young and healthy, some may encourage you to buy a high deductible health policy (e.g. $5000/year deductible). Such coverage is usually less expensive.  Make sure that you can afford the annual deductibles (plus co-pays and coinsurance).  Before the insurance kicks in, you will have to satisfy the deductible each year.

Review the full policy

Most importantly, whether you work with a licensed insurance agent or do the research on the web, do not rely on the summary brochure; it does not provide you with all of the information you need about what is covered and what is not, and what you may be on the hook for when the insurer doesn't cover it.  In most states you have a "free look" period of at least 10 days once you enroll and pay your premium.  If you cannot get a copy of the full policy before enrollment (most states do not require insurers to give that to you), use the 10 days to read the full policy.
 
Remember, the goal of buying health insurance is to make sure you will have access to needed medical care and won't go bankrupt because of an illness.  (An illness is the leading cause of personal bankruptcy in America.)  So, understand what you are buying.

Research the insurance company

Finally, before you sign up, check out the insurance company to make sure they are licensed in your state and have a good reputation.  The NAIC website has complaint information about insurers (click on Consumer Information Source).

For additional information and other things to consider, visit our consumer health insurance guides at www.healthinsuranceinfo.net.