5 Common Mistakes to Avoid When Choosing Health Insurance
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Introduction
Health insurance is a big decision. You need to evaluate your personal health needs, consider whether you want supplemental coverage and determine the best plan based on your job, lifestyle and budget. While it can be tempting to just go with what’s cheapest or easiest, doing so could potentially lead to financial trouble down the line. Avoid these common mistakes when choosing health insurance:
Not Exploring All of Your Options
When shopping for health insurance, it’s easy to get caught up in the idea of finding the cheapest plan. But there are other factors that should be taken into account when choosing your insurance provider and plan.
- Consider all options before making a decision: Don’t just look at the lowest-cost option; compare different plans based on their coverage and cost structure before making a final choice. For example, if you have kids who are going off to college next year and need coverage until then but don’t want them on your policy anymore after that point (and thus want them covered under their own plan), consider adding them as dependents instead of dropping them altogether from your current family plan.* Ask your insurer if they offer any discounts: If you qualify for any discounts–such as having chronic conditions or being over 55 years old–ask about them when speaking with an agent.* Consider health care plans with lower co-pays and deductibles: Instead of opting for more expensive monthly premiums, look into plans with higher out-of-pocket costs but lower monthly payments so that when medical bills come due each month (and they always do!), they won’t break the bank.* Ask whether there are other plans available through other companies that might provide better coverage at lower cost
Focusing Only on the Premium
It’s important to remember that a health insurance policy is more than just a monthly premium. When choosing your plan, you should also consider:
- Co-payments, co-insurance and deductibles (the amount you pay out of pocket before your insurance kicks in)
- Out-of-pocket maximum (the most you could possibly have to spend on covered medical expenses during the year)
Not Knowing What You Need
The first step in choosing the right health insurance plan is to know what you need. When choosing health insurance, it’s important to be aware of any pre-existing conditions or other medical conditions that might require additional coverage.
If you’re young and healthy, or if you only have minor ailments like allergies or seasonal colds, then basic plans may offer enough protection for your needs at an affordable price point. However, if you have a chronic condition such as asthma or diabetes–or even worse yet…smoke!
Not Knowing How to Use Your Plan
There are many aspects of your plan that you should know how to use. If you have a claim, here’s what steps to take:
- Call the number on your insurance card or ask your doctor for help. They will be able to tell you if they’re in-network and give information on what they charge out-of-pocket costs like co-pays and deductibles.
- Find a pharmacy close by that accepts your insurance plan. Look up pharmacies near where you live or work using Google Maps; many pharmacies have websites where they list their services and locations so check those out too!
If it turns out that none of these options work for some reason (maybe none were close enough?), then go ahead and call customer service–they’ll help figure out what other options are available nearby without having any trouble at all 🙂
Neglecting to Understand Your Deductibles and Co-Insurance
- What is a deductible?
A deductible is the amount of money you must pay out of pocket before your insurance will cover any medical expenses. In other words, if you have a $2,000 deductible and get sick with an expensive condition like cancer or heart disease, it will be up to you to pay for most of your care until the total amount spent reaches $2,000. This can be difficult for people who don’t have extra funds saved up and might make them more likely to delay seeking treatment until their condition gets worse–which can lead to higher costs down the road.
- What is co-insurance?
Co-insurance refers to how much an insured person pays after their deductible has been met (and sometimes even before). For example: A plan may have 50/50 co-insurance; this means that once an individual meets his/her annual out-of-pocket maximum ($4K), he/she will pay 50% of all medical expenses until reaching another annual limit ($8K).
Avoid these common mistakes when choosing health insurance
- Avoid the common mistakes. The first and most important thing to do is to avoid these common mistakes when choosing health insurance.
- Explore all of your options. It’s important that you explore all of your options before making a decision on what type of plan suits your needs best, because there may be something out there that works better for you than another option would have done!
- Focus on the premium. You should always focus on getting value for money when purchasing any product or service, so make sure that when it comes down between two similar plans with different premiums; go with whichever one has cheaper premiums! This way not only will this save money now but also in future years too (assuming nothing changes).
Conclusion
Health insurance is a complicated product, and it’s easy to make mistakes when choosing your plan. But with the right knowledge and tools, you can avoid these common pitfalls. We hope this article helped you understand what makes for a good health insurance plan and how to get one that fits your needs. If you have any questions about our recommendations or anything else related to healthcare costs, please reach out!
