The first and probably most obvious cost is the monthly premium or, if you so choose, the quarterly or annual premium. If you belong to an employer's or union group insurance plan then you will generally be required to meet only a percentage of the premium and this will often be deducted from your pay check.

The majority of health insurance policies will also include an annual deductible which is a sum of money which you will need to pay before your insurer begins to pay out on any claims. In other words, with an annual deductible of say ,000 you will have to meet the first $1,000 of your medical bills every year before your insurer will start paying out. You may be familiar with paying a deductible from your experience with car insurance policies and , if this is the case, will know that the higher the deductible on your policy the lower your premiums will be. Also, if you have a family health insurance plan then this will often include deductibles for each family member covered under the policy.

The majority of health insurance plans will also include a co-payment which is a fixed sum of money which you will have to pay towards every medical bill. Just how much you will have to pay in co-payments will depend very much on the type of policy which you hold. For example, co-payments on HMO plans are normally lower than those on indemnity plans. Additionally, the co-payment can also vary between different types of medical service and, if you have an HMO plan, will generally increase if you are treated outside of the HMO network.

In those cases where a co-payment is not required you will normally find that this is replaced by co-insurance which is similar and is a sum of money, in this case expressed as a percentage, which you will have to pay towards every medical bill. A common co-insurance ratio is 80/20 indicating that your insurer will meet 80% of each medical bill while you pay 20%. As for co-payments, co-insurance will often rise if, as a member of an HMO plan, you are treated outside of the HMO’s network. In this event you will also find that, whenever a claim exceeds what the insurance company considers to be 'reasonable and customary', you could be required to meet the additional cost.

By this time you will see that comparing health insurance plans is about a great deal more than simply comparing premiums. As a result, when you are trying to find an affordable health insurance plan it is extremely important for you to read the details of any quote very carefully and avoid the common temptation to simply choose the plan with the lowest monthly premium.

If you wish to keep your costs low and are a member of an HMO plan then you should try to remain inside the HMO’s network and, if you do feel that it is necessary to go outside the HMO's network, then compare actual treatment costs to what your insurer considers 'reasonable and customary' before you agree to treatment.

It is also possible to keep your costs under control on many plans by adjusting your deductible and by selecting higher or lower co-insurance. Precisely how this can be done is beyond the scope of this particular article but is a question of balancing the different costs against the probability of having to make a claim on your policy.