There are plenty of choices to make when it comes to health insurance, and it can be difficult to know the best option for you and your family. However, there are some common mistakes that people make when choosing their health insurance that you should try to avoid.
In this article, we will discuss five of the most common health insurance mistakes so that you can be better informed about choosing the right plan for you.
Mistake #1: Choosing based on price instead of coverage
One of the most common mistakes people make when choosing their health insurance is basing their decision solely on price. While cost is undoubtedly an important factor in any purchase, it shouldn’t be the only thing you consider when selecting a healthcare plan.
Make sure to look at factors such as deductibles, co-pays, coverage limits, and which providers are in-network before making your final decision. It’s also important to remember that cheaper plans may have higher deductibles or fewer perks than more expensive ones – so always read the fine print!
Mistake #2: Not shopping around
When selecting health insurance, shopping around and comparing prices is essential. You may be surprised at how much you can save by choosing a plan that is not the “industry standard.” Additionally, always check the premium rates for each policy to ensure you are getting the best deal.
Below are a few tips when shopping around:
- Be realistic about your needs- while health insurance is a great investment, it’s important to be honest with yourself about what you need and don’t need coverage for. Make a list of the major medical procedures and treatments you will likely experience in the next few years, and look for plans that cover at least some of these costs.
- Consider combining health insurance with other policies- many people find that having additional coverage (such as life insurance) can help protect them if something catastrophic happens to their health.
- Talk to your family and friends- many people get their health insurance through their employer or government programs, but other options may be available. Ask around – many people have sources of affordable coverage that they don’t even know about!
Mistake #3: Not using an HSA or FSA
If your job offers a Health Savings Account (HSA) or Flexible Spending Account (FSA), sign up for one! These accounts let you set aside pre-tax money specifically for medical expenses, which can help reduce your overall healthcare costs throughout the year.
Just make sure not to confuse HSAs with FSAs. While both offer tax breaks, HSAs come with strict regulations on how funds can be used (generally only qualifying medical expenses), whereas FSAs have looser restrictions. So if given the choice between an HSA and FSA, go with an HSA unless there’s something specific you want/need to be covered by an FSA.
For example, an incident like pink eye probably wouldn’t qualify under most policies without needing a co-pay, but a visit to the doctor for a routine check-up typically would.
Mistake #4: Not buying insurance when they are young
Not buying health insurance when you are young can be a costly mistake. Life can be unpredictable, and an unexpected illness or injury can occur at any time. By the time you need health insurance, the premiums will have increased significantly, and your coverage may not be as comprehensive as it should be. You may also face higher out-of-pocket costs if you need to visit a hospital or receive treatment for an illness.
If you don’t have health insurance, you could end up paying hundreds of dollars out of pocket for medical expenses. This is especially true if you become seriously ill or injured. By getting health insurance when you are younger, you can protect yourself from these potential costs and gain access to valuable benefits such as covered treatments and preventive care.
Mistake #5: Failing to review your health insurance plan on a yearly basis
Reviewing your health insurance plan every year can help you spot signs of changes that may affect your coverage and ensure that you are still getting the best possible deal. Reviewing your policy every year can also help make sure that you understand any exclusions or benefits that may be important to you and can alert you to potential cost increases or decreases.
Advice for Avoiding These Mistakes
Here are four tips to avoid making common health insurance mistakes.
- Choose the right health insurance plan for you. There is no one-size-fits-all approach to health insurance, so make sure to research different plans and find one that will fit your needs and budget.
- Verify your coverage. Make sure you have a clear understanding of your benefits and what will be covered by your policy. Check with your insurer or the website of the plan you’re considering to ensure there are no changes in terms of coverage that would affect you (for example, if you had a pre-existing condition before enrolling in a particular policy).
- Be aware of how premiums & co-pays can impact your finances. Premiums and co-pays can add up quickly, so it’s essential to understand how much they’ll cost before signing up for coverage.
- Review your policy periodically. Most policies have periodic reviews (usually every year) where you can confirm whether the coverage remains appropriate for you and whether any updates or changes to the plan have been made since your previous review.
Final Thoughts
If you want to make sure you’re making the most of your health insurance, it’s important to avoid these common mistakes. Taking the time to understand your plan, shop around for the best coverage, and review your policy regularly can save you money and ensure that you’re covered when you need it most. When it comes to health insurance, an ounce of prevention is worth a pound of cure.
Get answers to your questions about group or individual health insurance by calling Insurance Enterprise at 888-350-6605 or by sending an email to benefits@insuranceenterpriseusa.com. Speak to a licensed agent to get health insurance quotes and learn more about getting a cost-effective health insurance plan.