How do I choose between the Bronze, Silver, Gold, or Platinum plans?

4 Plan Choices

There are 4 different categories of plans to choose from in the new exchange that you could get lower premiums or lower out-of-pocket expenses on based on your income. They are Bronze, Silver, Gold, and Platinum.

All the plans include a core set of Essential Health Benefits. The four categories do not indicate the quality of care that you'll receive - just what you pay out-of-pocket when you use your plan.

Each category has a different monthly premium amount and a different amount that you pay out-of-pocket for healthcare.

5th choice for some

There is a fifth "catastrophic" plan, which is available for people under 30 years old or those with limited incomes. Learn more about that plan option here.

Paying Premiums

With all health insurance plans, you pay a premium each month to have the coverage. You'll pay this amount to the insurance company whether you use your plan or not.

Generally speaking, the higher the premium, the lower your out-of-pocket. The lower the premium, the higher your out-of-pocket.

For example, if you have a Gold plan, you will likely pay more per month in premium but less when you go to the doctor or have another medical service. If you have a bronze plan, you'll likely pay more for services but pay less each month in premium.

How do you choose your plan?

Your plan choice comes down to your personal preference and comfort level. You have to find the balance between price and benefit that is right for you.

Of course, none of us know what the future will bring. That's why we have insurance, after all. So the best thing we can do is take past health history into consideration. You also need to think about what is a comfortable amount for you to pay out-of-pocket in medical expenses. Most consumers find themselves falling somewhere right in the middle. Most don't want to pay the highest premium, but also don't want to biggest out-of-pocket costs either.

Some considerations to help you decide:

Do you go to the doctor often? Take many prescriptions drugs? Think there is a high possibility of hospitalization or expensive outpatient procedures or tests?

If so, you want want to consider paying the higher premium for a Platinum or Gold plan. The more often you use your plan, the more having lower out-of-pockets costs will help you.

If not, you might want to consider a Silver or Bronze plan. You'll pay more for medical services when you use your plan, but you'll save on the monthly premiums. And if you don't think you'll use your plan that often, you might see an overall savings in the year.