Pinpointing your health plan persona

How your personality can help you pick the right health insurance plan

Did you make breakfast at home this morning or grab something on the way to work? Do you save up for major purchases or prefer payment plans? Choosing the right health plan could be one of the most influential financial decisions you’ll make this year. So what do breakfast and budgets have to do with it?

The priority principle

How you manage everyday tasks says a lot about your personality — and your priorities. Do you need predictability, or do you prefer to go with the flow? Are you a saver or spender? These questions have a big impact on which kind of health plan will work best for you and your family.

The basic costs of health plans fall into two main categories: the cost of the plan (monthly premium) and the cost of using the plan (accessing care). Choosing the right health plan is not just about how much you spend. It’s also about where you spend. That, at least in part, is where your personality comes in.

Price tags and personalities

So which health plan is right for your personality? The first step is to decide how much — total — you can and will spend on healthcare next year. Then decide where and how you want to spend those healthcare dollars.

Here are a couple of examples:

Personality traits: Cautious, security is a priority. Likes order and predictability. Low tolerance for risk. Prefers predictable monthly costs over variable expenses.

Possible health plan match: Low or no deductible PPO medical plan.

Why: With low or no deductible health plans, you generally pay more of your healthcare dollars toward monthly costs (premiums). But because you either don't have to meet a deductible or have a low deductible, you most likely won't have to have large cash reserves to pay for major care when you need it. Your health plan will pay claims immediately (no deductible) or sooner than high deductible plans.

Personality traits: Flexibility is a priority, with a higher tolerance for risk. Dislikes paying for things the family may not use. Prefers lower monthly costs (premiums) and is comfortable with possible variable costs.

Possible health plan match: Higher deductible PPO medical plans.

Why: These plans generally carry lower monthly price tags, but you'll have to pay more out of pocket when you need care (because you have to meet your deductible). That means you'll need to plan for the possibility of large, variable medical expenses (up to your deductible and coinsurance maximum) throughout the year. But you're less likely to run the risk of paying for care you ultimately won't use.

Prepping your plan to pay

The best plan for your family is one that balances your personality preferences with how much you can and will spend in the coming year. This means you need to decide on that total number: the sum of the monthly cost plus how much you'll spend using the plan. Here are some things to consider:

1. Estimate next year's healthcare expenses. Start with this year's expenditures. How much did you spend on prescription drugs, doctor visits, preventive care? Then think about game-changers: a chronic condition diagnosis, an upcoming surgery or your desire to start a family. You'll want to account for those changes.
2. Understand your deductible. The deductible is the amount you pay out of pocket before your plan's coinsurance kicks in. Did you meet your deductible this year? If you had a higher deductible, would you have the cash reserves you'd need to meet it if necessary?
3. Consider your coinsurance. The coinsurance is the amount your plan pays for eligible services once you've met your deductible. This number becomes important once you meet your deductible and your plan starts paying claims. It can have a huge impact on how much accessing care can cost you out of pocket. Be sure to pay attention to both in- and out-of-network coinsurance amounts.
4. Assess your annual cost. This is the amount (premium) that it costs you to have the plan, not to use it. Multiply your monthly cost by 12, and you have your annual cost of coverage.

Now you have both sides of the equation: how much you can/might spend for healthcare next year and where you might spend it. Your specific relationship with money, tolerance for risk and priorities will point you toward the right plan. Understanding both the logical and emotional elements of your health coverage will help you make the most of it.