Most consumers have healthcare coverage from an employer. Others have medical care paid through a government program such as Medicare, Medicaid, or the Veterans Administration.

If you have lost your group coverage from an employer as the result of unemployment, death, divorce, or loss of "dependent child" status, you may be able to continue your coverage temporarily under the Consolidated Omnibus Budget Reconciliation Act (COBRA). You, not the employer, pay for this coverage. When one of these events occurs, you must be given at least 60 days to decide whether you wish to purchase the coverage.

Some states offer an insurance pool to residents who are unable to obtain coverage because of a health condition. To find out if a pool is available in your state, check with your state department of insurance.

Most states also offer free or low-cost coverage for children who do not have health insurance. Visit www.insurekidsnow.gov or call 1-877-KIDS-NOW (543-7669) for more information.

Healthcare Plans

When purchasing health insurance, your choices will typically fall into one of three categories:

• Traditional fee-for-service health insurance plans are usually the most expensive choice. But they offer you the most flexibility when choosing healthcare providers.
• Health Maintenance Organizations (HMOs) offer lower co-payments and cover the costs of more preventative care, but your choice of healthcare providers is limited. The National Committee for Quality Assurance evaluates and accredits HMOs. You can find out whether one is accredited in your state by calling 1-888-275-7585. You can also get this information as well as report cards on HMOs by visiting its website (www.ncqa.org).
• Preferred Provider Organizations (PPOs) offer lower co-payments like HMOs but give you more flexibility when selecting a provider. A PPO gives you a list of providers you can choose from.

WARNING: If you go outside the HMO or PPO network of providers, you may have to pay a portion or all of the costs.

When choosing among different healthcare plans, you'll need to read the fine print and ask lots of questions, such as:

• Do I have the right to go to any doctor, hospital, clinic or pharmacy I choose?
• Are specialists such as eye doctors and dentists covered?
• Does the plan cover special conditions or treatments such as pregnancy, psychiatric care and physical therapy?
• Does the plan cover home care or nursing home care?
• Will the plan cover all medications my physician might prescribe?
• What are the deductibles? Are there any co-payments?
• What is the most I will have to pay out of my own pocket to cover expenses?
• Are there any limits on expenses covered in a year? In my lifetime?
• If there is a dispute about a bill or service, how is it handled? In some plans, you may be required to have a third-party decide how to settle the problem.