Buying “Low Cost” Health Insurance

Things to Consider Before Buying "Low Cost" Health Insurance

Whether you found less costly health insurance online or someone called you with an offer, here are some questions to ask before you buy. For help, call the Utah Insurance Department at 801-957-9280.

  • Is it a Short-Term Limited Duration plan, a Sharing Ministry plan, or another limited-coverage plan? Is it sold through an association that requires a membership fee? If so, it could cover less than a Marketplace plan.
  • Is the person selling the plan licensed in Utah? If so, ask what their Utah Insurance Department license number is and confirm it using our Agent Search tool.
  • What is the insurance company and is it licensed in Utah? Look it up on Agent Search.
  • Does the plan cover your pre-existing conditions? Does it cover your medications?
  • What are the deductibles? There may be different deductibles for different services.
  • What services DOESN’T the plan cover?
  • For services that ARE covered, how much will the plan actually PAY? Is there a limit on the total amount the plan will pay per person, per service, or per year?
  • How long will the coverage last? Will you be able to keep or renew your coverage if you get sick?
  • Does the plan have a provider network?
    • If yes, how do you access information about it? Is your doctor or hospital in the network?
    • If not, will doctors and providers agree not to bill for amounts above what the plan pays?

Ask for a written example of how coverage works if you were to visit a physician and needed diagnostic tests and follow-up care. Also ask for a written example of how coverage works if you were to have a hospital stay for several days, and had testing and scans, surgery, and saw several specialists.

Before you buy, always ask for the plan’s details in writing and take the time to review the materials carefully. Don’t feel rushed to make a decision. Remember, there is free help available to you at the Utah Insurance Department at 801-957-9280.