Health insurance marketplace can be daunting. With only limited time to compare plans and make decisions, it is vitally important that individuals gain a deep understanding of this complex system as well as familiarize themselves with some essential terminology.

Selecting an insurance plan requires thoughtful consideration of both current and future needs, with an eye toward costs beyond monthly premiums like deductibles and coinsurance rates.

1. Know Your Needs

Acknowledging your needs is the cornerstone of making smart health insurance decisions, and understanding its fundamentals is also vital.

Your health insurance may come through your job, a government program such as Medicare or Medicaid, or directly from a private insurer – but regardless of where it comes from it must meet minimum standards and standards.

Health plans are typically organized by their level of coverage; bronze plans typically offer less, while platinum plans offer the most. They may also feature different cost structures like copayments or deductibles that must be met before receiving care.

Some plans require you to pay a monthly premium before your benefits kick in, with other costs such as deductibles and copayments often added on, before reaching an out-of-pocket maximum limit.

An indemnity plan may also be an attractive choice, since these plans don’t impose provider network restrictions and allow access to any doctor. But keep in mind that these plans do not meet Affordable Care Act minimum essential coverage standards and could result in large out-of-pocket expenses.

2. Know Your Options

Health insurance coverage can come from many different sources: your job, government programs like Medicare or Medicaid, individual market plans through either federal or state marketplaces or exchanges (where eligible shoppers can purchase coverage and get financial assistance), or private plans with more flexible options available to enrollees. Typically private plans offer more choices and flexibility.

At the center of that decision lies the variety of plans available: bronze, silver, gold or platinum plans offer different levels of coverage that increase in cost with each level tier; additionally they may choose an HMO or PPO network of doctors with either more restrictive membership requirements for HMOs, or wider options when enrollees select an PPO plan.

Consumers need to know their options when shopping for individual or family coverage during open enrollment from Nov. 1-15, which runs November through January 15. A good place to begin is with the marketplace – here you can compare thousands of plans that are sold both inside and outside the marketplace, get personalized plan recommendations, or speak to a licensed health insurance agent (though they cannot give advice), government representatives who may be available through your state marketplace.

3. Know Your Budget

Healthcare expenses can often be the hardest financial obligations for people to budget for, as there are so many moving parts associated with health insurance costs.

The most obvious cost associated with health insurance coverage is your monthly premium, which covers basic coverage but does not extend further (similar to car or gym membership costs). There may also be other charges, including copayments and deductibles which are charged whenever medical services or prescription fills take place; once this amount reaches its limit they become capped.

All these fees can add up quickly, but there are ways to manage them effectively. For instance, if you purchase plans through the marketplace, Health Trust Financial’s licensed healthcare agents can evaluate your options and find plans within your budget.

Alternatively, if you have specific medical needs such as pregnancy or chronic conditions that make insurance expensive, direct insurer shopping may provide more cost-effective options by including your provider network and prescription drug list in the plan. Furthermore, short term or zero deductible health plans offer additional protection from rising healthcare costs and should also be considered when seeking coverage options.

4. Know Your Options

Finding an insurance plan can be complex. From purchasing from the marketplace (commonly referred to as an exchange) for the first time or transitioning out of their plan as you age into adulthood to switching from your current job’s insurance to your own plan, there are multiple factors that must be taken into account such as cost, coverage and types of providers within its network that must all be taken into consideration before making your selection.

Understanding some key terms can make the process less daunting, like premium being the monthly amount you pay to have health coverage and cost sharing such as deductibles or copays or coinsurance being payments you must make every time you receive medical care or fill a prescription; typically a higher deductible reduces monthly premium payments.

Keep in mind that the marketplace only provides private health insurance – not life or long-term care coverage. If you need these types of policies, either look outside the marketplace to purchase them directly or explore whether Medicare or Medicaid eligibility might apply in your case.