In the wake of the health care reform debate, it is more important than ever to be health insurance literate. In order to find an affordable health insurance plan and ring in the New Year with better budgeting, you have to be willing to compare health insurance plans, which can be tricky and time-consuming. Here is a quick guide for how to compare health insurance plans for better budgeting.

The premium price of health insurance plans usually depends on whether the plan allows you to choose your doctor, or if you are required to see a doctor within the network. HMO (health maintenance organizations) plans give you better budgeting, but options for choosing your doctor are limited to provider-approved doctors. PPO (preferred provider organizations) plans allow you the option of sticking with a doctor in the network for a cheaper fee, or choosing your own doctor for a bit more. POS (point-of-service) plans are a mixture of the two plans above. Usually, you are required to see a doctor within the network before seeing one outside. So, when you compare health insurance plans, consider whether you want a specific doctor or if you are okay with a provider-approved doctor.

Make sure to read the fine print when you compare health insurance plans. Steer clear of anything that seems too good to be true, like free routine check-ups, which should be provided free by your existing company. Keep in mind what kind of health insurance you need - short-term? Medical and dental? Family or individual? What prescriptions will you need, and will the plan cover those over-the-counter pharmacy bills?

Another way to be smart about better budgeting is to open a bank account specifically for your health care costs. This could win you significant savings in deductions come tax day. Also, you might want to consider paying a higher premium, if it means less co-payment and a lower deductible. And one of the best ways that you can save on health insurance is to perform highly on wellness exams, so make sure to eat that apple a day, and roll out that yoga mat. Many employers offer incentives for those who eat well and exercise consistently.

Researching health care insurance policies online can be tricky, because companies with deeper pockets tend to spend more on online advertising. Dig deeper than just the top spots on search engines, and take your time while you compare health insurance. After you have read up on non-biased sites about different plans, contact the providers that you are interested in, and don't be afraid to ask lots of questions. It's your health insurance plan in question and it's your life.