Comparing health insurance plans to become easier in 2012

If you've tried shopping for health insurance, you know how frustrating it can be.

Experts say much of the language isn't in plain English and too often the actual costs are hidden or unclear.

But come next March, shopping for health insurance should become much easier.

Under the federal health care overhaul adopted in 2009, health insurance companies and employers who offer health coverage to workers will be required to provide clear and consistent information about your health plan.

The information will include:


An easy-to-understand summary of benefits and coverage


A uniform glossary of terms commonly used in health insurance


The annual premium and annual deductible


What the policy doesn't cover


What your costs will be if you go to a doctor who's not in your plan's network versus one who is.

"It's absolutely a great idea," said Lynn Quincy, senior health policy analyst at Consumers Union. "It's a really big issue that consumers face when trying to compare health insurance plans."

By making the terms of insurance plans easier to understand, consumers are less likely to find themselves in health plans that don't meet their needs, she said.

"Consumers Union has heard too many stories of consumers that purchased a health insurance plan that they didn't understand," Quincy said. "Creating this health insurance disclosure will help reduce that confusion much in the same way that recent disclosures for mortgage terms or credit cards have helped to better inform consumers."

The new form will also list common medical scenarios, such as pregnancy, cancer and diabetes, and will include information such as premiums and patient cost-sharing, and cite the bottom-line cost for treatment of those conditions.

Health insurance companies said they strive to make their materials understandable and worry that the rules will burden them with unnecessary paperwork.

"Health plans increasingly provide user-friendly online tools and clear materials to make sure that consumers understand the benefits and costs of their health insurance policies," said Robert Zirkelbach, spokesman for America's Health Insurance Plans, which represents the industry. "The benefits of providing a new summary of coverage document must be balanced against the increased administrative burden and higher costs to consumers and employers."

Until the new form takes effect March 23, 2012, here's how to shop for health insurance:

Assess your needs: The insurance needs of a healthy 25-year-old man are very different from those of a woman planning to have children or a person with a chronic illness.