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Insurance is designed for sudden expensive exposure that most of us cannot afford. If you look at those words again: sudden and expensive. It does not spell out the predictable and affordable. For years though, we had someone with the bigger purse paying the bills. Most of us had very little to pay out-of-pocket for any of our own medical expenses. At least until now.

It’s common knowledge that those who have more money tend to have more to spend without question. Insurance companies are not any different; they are the ones with the bigger purse. Medical providers know this as well. Over the last 50-60 years, the providers increased their prices to see what they can get away with, at the same time the insurance companies were negotiating for bigger discounts. This is how healthcare became big business. The insurance companies fronted this cost, and now we have to cover the expense of higher premiums today.

The pricing transparency is null in the healthcare industry. Partly because we never needed to know because someone else was paying the bulk of the bill. The other reason is that no one shopped their healthcare expenses like they do other consumable items. The medical providers know this and took advantage of this. The price for something billed to the insurance company and what is the ‘cash price’ can be completely different. Which one are you going to pay?

It’s highway robbery if you ask me. Take a typical generic medication at the local pharmacy. One could cost about twenty dollars to the insurance company, but your price if you pay the cash price could be ten dollars. Why? It is because they can.

The opposite is also true. If you ask for the cash price, it could be double what the insurance companies negotiated price. Many providers will charge the patient the billed amount versus the discounted amount. It’s kind of like since you asked I’ll charge you more.

Personal case study: My kid injured his hand. The specialist could not tell that it was fractured or not. They wanted to lean on the side of caution, but I wanted to know if it was just a deep bruise or a fracture. The doctor suggested that we do an MRI on his hand just to be sure. As any caring father would, I inquired how much would this cost me if I paid cash, I have a high deductible health plan. He said the insurance company’s approved amount is $350 (this was a small MRI machine). He continued and said I don’t make anything from them. So if you pay cash, I would charge you $450.

With many policyholders having High Deductible Health Plans (HDHP) or Health Savings Account Plans (HSAs), many providers realize the patient is responsible for the initial expenses. This can be good and bad depending on the view.

First, there is the negative view. Many are expecting the first dollar coverage to be paid for by the insurance company. Every doctor visit, lab test or prescription drug is coming out of your pocket first and is applied towards your deductible. Some may not like this idea.

The flip side to this is you have more control of your expenses while saving in premium costs. The net gain is worth it for many. They can ask more questions about their healthcare. Why? It is because it’s their money. More importantly, you should be asking more questions about your healthcare.

At the end of the day, it is your healthcare and your money. Finding that happy middle ground between the cost of the coverage and what you get for it can be overwhelming and expensive. Figuring out what is important to you and asking enough questions so you can make better-educated decisions will save you thousands of dollars over the years. After all, it is your money.

The card comes with a randomly assigned Medicare Beneficiary Identifier (MBI) made up of 11 letters and numbers; and no social security number like on the current card.

Some differences in the new cards include:

Uppercase letters and numbers
The letters B, I, L, O, S and Z will not be used to avoid confusing letters with numbers
Positions 2, 5, 8, and 9 will always be letters
No embedded logic
Each beneficiary will be assigned a unique identifier
All 60 million or so Medicare recipients will eventually receive the card in the mail. The mail outs started April of 2018 and will go on for a year.
What Do You or the Medicare Recipient Need to Know?

You do not have to do anything to get the card. It will be automatically mailed to you.
Make sure Medicare has your current address so your card is delivered on time.
The card may be in an envelope that resembles junk mail.
Once you receive the card, destroy your old card and begin using your new card right away.
Do not get worried if your friends have the new card and you don’t. It will take some time to mail all of the cards.
The new card is paper. You may want to laminate it.
Bring the new card to your next healthcare visit.
If you forget to bring your new card, your healthcare provider should be able to look up your Medicare identification online.
If you have a Medicare Advantage policy, you should still keep and use this plan’s card. However, have both cards on hand when you visit your doctor.
Beware of Scams (as recommended by the American Association of Retired Persons)

Scams relating to the new card are already surfacing. Some Medicare recipients report getting calls from scamsters who tell them that they must pay for the new card and then ask them for their checking account and Medicare card numbers. Don’t give out either number!!
“Anyone saying they are going to charge you for a card is a scammer,” says Paul Stephens, director of policy and advocacy with the Privacy Rights Clearinghouse in San Diego. “In the case of CMS, they will never need you to tell them what your Medicare card number is because they already know it.”
Identity theft is rising among those 65 and older. The Department of Justice has cited a figure of more than 2.6 million cases of senior identity theft occurring in recent years.

Always proceed with extreme caution before releasing any personally identifying information!

If you’re fortunate enough to have employer-provided health insurance, that narrows your options down to the plans that your employer offers. If you don’t have coverage through your job, perhaps an organization or association that you belong to will allow you to buy health insurance through them at a group rate.

Another option is to check your local Obamacare health insurance marketplace to see if you qualify for an upfront premium credit, which would get you reduced premium costs. Even if you don’t qualify for the credit right away, buying your health insurance through the marketplace means you may qualify for it when you file your tax return for the year.

If you can’t, or won’t, get health insurance from any of these sources, you’ll have to fall back on buying a private plan. It will give you the widest range of options, but likely will be far more expensive.

Decide which type of policy to buy

Health insurance policies come in a variety of basic types, although you may not have access to all of these options through your preferred source. Health Maintenance Organizations (HMOs) are a very common type of health insurance policy. With an HMO, you’re required to use healthcare providers within the policy’s network, and you have to get a referral from your primary care physician in order to see a specialist.

Preferred Provider Organizations (PPOs) are also quite common. A PPO health insurance policy has a network, but you’re not limited to in-network care — although using network providers is cheaper — and you don’t need referrals to see specialists.

Exclusive Provider Organizations (EPOs) are a hybrid between HMOs and PPOs. You’re required to stick to the plan’s network, but don’t need referrals for specialists. Finally, Point of Service (POS) plans are a less common option that are essentially the opposite of an EPO. You’re not limited to the POS plan’s network, but do need a referral to see a specialist.

Of the four common types of plans, an HMO or EPO tends to be cheaper than a PPO or POS with the same level of coverage. However, if network coverage is poor in your area, or you’re uncomfortable limiting yourself to network providers, it may be worth paying a little more to get a PPO or POS policy.

More: Buyer beware: Long-term care costs are surging, survey says

More: Obamacare overhaul efforts are dead for now. What does that mean if you’re an Obamacare consumer?

More: Trump says he’ll negotiate with Democrats on health care plan

High deductible versus low deductible

All things being equal, the higher a plan’s deductible is, the lower the monthly premiums will be. A high deductible means that you’ll have to pay a lot of healthcare expenses yourself before the insurance policy kicks in, but if you have few or no medical expenses in a given year, these plans can be a bargain. Very low medical expenses means that you probably won’t surpass the deductible, even of a low-deductible plan, so getting a high-deductible plan keeps your insurance costs as low as possible while still protecting you in case something catastrophic happens.

If you decide to go the high-deductible route, getting a Health Savings Account (HSA)-enabled plan, and funding it with at least the equivalent of a year’s deductible, is your best option. An HSA plan neatly covers the biggest weakness of a high-deductible health insurance policy – namely, that you’d have to shell out a great deal of money on a major medical expense before the insurance would take over. If you have a full-year’s deductible tucked away in your HSA, you can just use that money to finance your share of the expenses, while simultaneously enjoying the triple tax advantage that an HSA offers.

More:Follow USA TODAY Money and Tech on Facebook

Comparing coverage

There are two major factors that affect how well a particular plan will cover your medical expenses: the plan’s network and its coverage policies. Even if you choose a plan with out-of-network options, like a PPO, you’re still better off using in-network health providers as much as possible because doing so will reduce your costs. And the rules that a given health insurance policy uses to decide what’s covered and what’s not – and how much the co-pays will be – can make a huge difference in how helpful a particular policy really is for you.

For example, if there’s a rather pricey medication that you take every day, you’ll definitely want to get a health insurance policy that lists that medication on its formulary. If you travel a lot, stick to plans that offer good out-of-area treatment options. And if you already have a primary care physician, you’ll definitely want to pick a plan that includes your doctor in its network.

Finding the best deal

If you’re stuck between two or three different policies and can’t decide which one to choose, try this exercise. Multiply the monthly premium by 12 to get your annual cost for a plan, then add in the plan’s out-of-pocket maximum. The result is the most you would end up spending on health care if you had one or more major medical expenses during the year. Do this calculation for each plan you’re considering, then compare the results. The plan with the lowest total is likely the best deal for you.