Choosing the right health insurance plan can feel overwhelming, but it’s essential for protecting your health and finances. To help make the process smoother, here are the top 10 mistakes to avoid when selecting your health insurance coverage.
1. Only Looking at Premiums
It’s tempting to choose the plan with the lowest monthly premium, but a cheaper plan might come with higher deductibles and out-of-pocket costs. Be sure to factor in all costs, including copayments, coinsurance, and your maximum out-of-pocket limit, to get a full picture of your potential expenses.
2. Ignoring the Network of Providers
Each health insurance plan has a network of doctors, hospitals, and specialists that offer care at in-network rates. If your preferred doctor isn’t in-network, it doesn’t affect the costs of in-network providers, but it does mean you’ll likely pay higher, out-of-network prices if you choose to see that provider instead of an in-network doctor. Always check whether your preferred doctors and hospitals are part of the network before choosing a plan to avoid unexpected costs for out-of-network care.
3. Overlooking Prescription Drug Coverage
Not all health insurance plans cover the same medications, and some may charge higher copays for certain prescriptions. If you take regular medications, make sure your plan offers affordable prescription drug coverage. Review the formulary (list of covered drugs) to ensure your medications are included.
4. Choosing the Wrong Type of Plan
Health insurance comes in different forms, including HMOs, PPOs, EPOs, and POS plans. Each plan type has its own rules for accessing care. For example, an HMO typically requires you to choose a primary care doctor and get referrals for specialists, while a PPO gives you more flexibility to see out-of-network providers. Understanding the differences is key to picking the right plan for your lifestyle.
5. Underestimating Your Healthcare Needs
Many people select a plan based on their current health, without considering possible changes in the future. If you anticipate needing surgery, frequent specialist visits, or starting a family, you may want to choose a plan with lower deductibles and better overall coverage. Being proactive can save you money and stress in the long run.
6. Not Taking Advantage of Subsidies
If you’re purchasing health insurance through the Marketplace, you might qualify for subsidies or premium tax credits to lower your monthly costs. Be sure to check if you’re eligible for financial assistance by entering your income and family size during the application process. Not taking advantage of subsidies could result in paying more than necessary for coverage.
7. Failing to Account for Out-of-Pocket Maximums
The out-of-pocket maximum is the most you’ll pay for healthcare in a given year, after which your insurance covers 100% of covered services. Plans with lower premiums may have higher out-of-pocket maximums, which can lead to unexpected financial strain if you face serious health issues. Make sure the out-of-pocket maximum is something you can afford in the event of a major illness or accident.
8. Skipping Preventive Care Benefits
Many health insurance plans offer free preventive care services, like vaccinations, screenings, and annual wellness visits, but not everyone takes advantage of these. Choosing a plan that includes a wide range of preventive services can help you stay healthy and avoid costly medical bills down the road.
9. Overlooking Telehealth Services
In today’s world, telehealth has become an increasingly popular and convenient way to access medical care. However, not all plans offer telehealth services, or they may charge extra fees for them. If you prefer virtual appointments or want to avoid trips to the doctor’s office, check if your plan includes telehealth coverage.
10. Forgetting to Update Your Plan After Life Changes
Life events like getting married, having a baby, or changing jobs can affect your health insurance needs. Many people forget to adjust their plan when their circumstances change, leading to gaps in coverage or higher costs. Be sure to update your health insurance during Special Enrollment Periods if any of these changes apply to you.
Choosing health insurance doesn’t have to be stressful. By avoiding these common mistakes and carefully reviewing your plan’s details, you can find coverage that fits both your health needs and your budget.
Get started with HealthBird today to compare plans and ensure you’re making the best choice for your healthcare.
