Premiums: this is the monthly, quarterly or annual cost to have your insurance, and is separate from any other cost you pay to use the insurance (such as copays, deductibles, etc.).

Deductibles: a deductible is a dollar amount that you pay before the plan pays anything towards your medical expenses. For example, if your plan had a deductible of $1,000 and you have a hospital bill of $1,500, the first $1,000 of that bill is coming out of your pocket.

Copays: a Copay is a set fee for certain services and is normally calculated outside of deductibles. For example, an office visit may have a copay of $20 whether or not you have met your deductible.

Coinsurances: coinsurance is the amount you pay towards a particular service, and is separate from Copays. For example, your plan may pay 80% of a covered service after the deductible is met. Using the example above with the $1500 hospital bill, you paid the first $1000, leaving a balance of $500. The plan’s coverage now kicks in and pays 80% of the $500, or $400. The 20% left ($100) is your coinsurance to pay. Total cost to you $1100.

Out of pocket maximum: this is the most you will pay out of pocket during the plan year, including copays, coinsurance, etc. To continue the above example: your out of pocket maximum is $2000, and so far you have paid $1100. You go the hospital again and this time the bill is $5,000. Your coinsurance is figured first (20%), which is $1000. However, you only have $800 to go before you hit your out of pocket maximum for the year, so you would pay $800 and the plan would pay the remaining $4200. Any other costs to you that the plan would normally cover at all would be picked up by the plan at 100%.

Now that you have a good understanding of many elements common to all plans and how they could impact you, the next step is deciding how much of what kind of care you may need. Do you require regular office visits, perhaps to a specialist or therapist? Then the copay amount is going to be important to you. Do you have a preexisting condition that may require hospitalization? Then the coinsurance and coverage surrounding that condition is going to be a major factor. Are you relatively healthy and are just concerned about catastrophic illness or injury? Then a lower premium with a higher deductible might work in your favor.

Lay out the number of times you predict you will see the doctor and any specialists, the number of times you need to purchase medication, regular checkups, and any other predictable expenses. Multiply these factors vs. the plan’s costs to get an estimated "usage cost." This is what you can expect to spend in addition to the premiums you pay for coverage. This figure is going to vary depending on the plan and its offerings; as a result you will have a different usage cost for each plan, just as you will have a different premium.

Add your usage and premium costs together to get an idea of what your total annual costs are going to be, then ask yourself a few questions.