How to shop for health insurance

As the economy worsens, more consumers find themselves walking through the minefield of finding health insurance. In the past four months, 2.6 million jobs have evaporated, and analysts say half these people also lost their employer-sponsored health insurance.

So when you're out there shopping for insurance, how do you discern a good policy from a bad one? It can be very difficult, experts say. "I'm a 35-year veteran in insurance, and I still don't understand it," says Rex Bowden Sr., of Global Insurance Consultants. "It's fluid. Sometimes what you think it means, it may not mean."

To get started, you can look at ratings of health care plans by the National Committee for Quality Assurance, which, in conjunction with U.S. News & World Report, also puts out a list of the best commercial health plans.

You can also look at insurance guidance from America's Health Insurance Plans,Families USA and the Patient Advocate Foundation. For help in understanding insurance terms, consult this glossary from the NCQA, or this glossary from the state of New York.

On eHealthInsurance.com you can compare the basics of a variety of plans. While you're doing that, here are five crucial questions experts say you should always ask.

1. How much are my premiums and will they change?

Make sure you get the premiums in writing - and find out how long you'll be paying that particular rate. Sometimes the rate you're quoted won't last long.

"Think of it like a credit card. Sometimes you get a nice, low introductory rate, then after a year, the rate skyrockets," says Steve Luptak, the executive director of Healthcare Advocacy.

2. What are my deductibles and co-pays?

Know what you're paying for. A deductible is how much you have to pay out of your own pocket each year before insurance kicks in. Even after you've met your deductible, you'll likely still have to fork over a co-pay whenever you see the doctor, get a procedure, or go to the hospital. For example, you might have to pay $25 for an office visit, or $50 for a hospital stay. Visit CNNhealth.com, your connection for better living

3. Is the insurance company licensed in my state?

Fraud happens, Luptak says. "Will the company be in business when you need it, or is it 'Shifting Sands Mutual'? "

According to government reports, both employers and individuals are vulnerable to unauthorized or bogus health insurance sales. In a 2003 Government Accountability Office report, there were at least 144 companies identified for selling fake coverage to more than 200,000 policyholders - leaving a at least $252 million in unpaid medical claims.

To make sure the company you're about to send your money to is legit, go to the National Association of Insurance Commissioner's Web site and find state-by-state complaint and financial information about specific insurers. NAIC also has a list of licensed insurance companies.

Experts also recommend checking out whether the insurance company is financially secure. "There's nothing worse than getting insured only to find out they're going out of business," Bowden says. You can research the credit rating of a company for free on the Web sites A.M. Best or Standard and Poor's.

For more tips, check out my column at CNNhealth.com