When open enrollment for benefits rolls around, you have many important decisions to make. One of the most crucial is choosing the right health insurance plan. Your plan will dictate how much you pay throughout the year and the type of coverage you receive.

Sifting through plan options can be overwhelming. Everyone's situation is different, so there's no universally "correct" plan. The trick is comparing coverage, considering overall costs, and evaluating your distinct healthcare needs. Here are a few factors to mull over when choosing an insurance policy.

Plan Categories

When looking at insurance plans, you'll see categories like Bronze, Silver, Gold, and Platinum. Despite how it sounds, these metal categories have nothing to do with the quality of care you can receive. Instead, it gives you a better idea of how you and the insurance company split costs.

The specifics of every plan vary, but the different metals are a quick way to gauge your out-of-pocket costs. The lower the metal grade, the more you'll pay. Generally, the split costs are as follows:

• Bronze: Insurance covers 60 percent, you cover 40 percent

• Silver: Insurance covers 70 percent, you cover 30 percent

• Gold: Insurance covers 80 percent, you cover 20 percent

• Platinum: Insurance covers 90 percent, you cover 10 percent

Premiums and Deductibles

In addition to cost share information, it's vital to consider how much you'll pay out of pocket for every plan. There are two factors to scrutinize: The premium and the deductible.

The premium is how much you'll pay every month for coverage. Meanwhile, the deductible is how much you must pay out of pocket for your healthcare before insurance kicks in. Generally, higher premiums come with lower deductibles and a higher plan category.

Types of Plans and Networks

During open enrollment for benefits, you'll have many types of plans available to you. Insurance isn't as cut and dry as it seems. Some plans restrict the kind of care you can get, who you can go to, and more.

Here are a few examples of the types of plans you can get:

• Preferred Provider Organization (PPO)

• Health Maintenance Organization (HMO)

• Exclusive Provider Organization (EPO)

• Point of Service (POS)

Author Resource:-

Daniel Stewart has been helping people with their money management and personal finance with over 15 years’ experience in business finance. You can find his thoughts at savings guide blog.