7 Common Mistakes to Avoid When Choosing Medical Insurance
Are you switching jobs or starting your own business? Are you beginning to think about choosing medical insurance?
An employer or marketplace may offer you several options for insurance. Choosing the right option for your family may seem simple at first. Making the wrong decision, however, could end up costing you money in the long run.
Here are some common mistakes you should avoid.
1. Only Looking at Premiums
Your medical premium is the amount you'll spend on health insurance each month. It seems simple to choose a plan that will require the lowest contribution from your paycheck, especially if no one in your family is suffering from a chronic illness or medical issue.
Policies with low premiums, however, often come with higher copays and deductibles. Your deductible is the amount of money you'll pay for medical services before your insurance begins to pay.
You're taking a bit of a gamble if you choose a low-premium plan. If someone in your family were to get into an accident or break a limb, you might be surprised at how much you need to pay out of pocket. It's often in your best interest to agree to higher premiums so you won't be caught with bills you can't pay.
2. Not Checking Which Doctors Are in Your Network
Many insurers offer plans that cover the majority of services from in-network doctors, but very limited coverage from doctors who aren't.
If you have doctors in your area that you're comfortable with, make sure they're in your plan's network before signing up. Otherwise, you could end up paying hundreds or thousands of dollars each time you need medical treatment.
Before you sign up for a particular plan, call up any doctors you're committed to working with and see if they accept the insurance. You can also check with your prospective insurance plan and see how much they'll cover for your visits to this particular out-of-network doctor.
If you're trying to find a new in-network physician, you may end up shopping around for a while. You'll need to find someone who understands your unique needs and personality. Make sure your plan offers a number of different options within about thirty miles from your home so you know you'll be able to find someone you're happy with.
3. Not Doing Your Homework
If your employer provides your insurance, it seems like an easy solution to simply choose the most popular plan in your company.
What's right for another family, however, might not work for you. If you need regular prescription medication for someone in your household, for example, a plan with higher premiums but better coverage may pay off.
You can shop around for new insurance options every few years. Your insurance needs may be changing, or there may be plans on the market that meet your family's needs for a better price.
There may also be discounts available for people who work for your employer or attended your college. You'll want to take advantage of every chance you can to save money.
4. Hiding Your Medical History
Some folks may be tempted to "stretch the truth" when applying for a health insurance policy. They may hide information about existing conditions as well as poor lifestyle habits.
If you have a condition like diabetes or sleep apnea, it will get found out during a claim check, and your claim will likely get rejected.
It's in your best interest, to be honest from the start!
5. Purchasing a Plan You Can't Afford
When you hear about the expenses involved in providing healthcare for you and your family, it can be tempting to sign onto a Cadilac plan with high premiums and low deductibles. You will be more than covered if someone were to get sick or injured.
You'll have to think carefully, however, about whether or not you can afford to lose such a significant amount from your paycheck each month. Can you continue to pay your other monthly bills without it?
To avoid overpaying, write down an honest assessment of what your family will probably spend on care from various physicians in one year. You may find that a mid-level plan suits your needs just as well.
6. Not Knowing What You'll Pay
Many Americans are unaware of significant items in their healthcare plans. This may include copays, premiums, and out-of-pocket maximums.
Before you agree to purchase a policy, you'll need to know how often you plan on seeing primary care doctors and specialists each year, as well as what you'll be paying to see them. You should also be aware of what you'll be paying in the event of an emergency.
A little extra research will put you ahead of most folks purchasing health insurance.
7. Avoiding Prescription Drug Coverage
Not paying for prescription drug coverage can seem like an easy way to save money. If you were to get sick, however, you could require regular doses of prescription medication that could quickly add up.
Read the fine print in your health insurance policy and make sure that prescription drugs are covered. Your future self who comes down with an infection will thank you!
The Secret to Choosing Medical Insurance
Choosing medical insurance can be a bit tricky. It takes a little research and planning to choose the right plan for your family for the best price. With so many types of coverage available, you'll have a great plan that will keep your family healthy for years to come!
Don't stop getting better informed now. For more information about good healthcare choices, read our blog today.
