5 mistakes to avoid when buying health insurance

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Be careful when choosing a health insurance plan so you don’t cause costly problems or miss out on proper medical care.


Important points

  • Investing in health insurance can be worth it.
  • Errors in the sign-up process can negatively impact your wallet.
  • Possible mistakes include focusing only on the premium cost, not purchasing adequate coverage for your medical needs, and ignoring prescription coverage.

For most Americans, health insurance is an expense that can be well worth it. Routine medical care and health emergencies can quickly become expensive without medical attention. The last thing anyone wants to deal with is expensive medical debt.

If you’re in the process of purchasing health insurance, you want to make sure you get a plan that fits your needs. Read on to learn the common (and costly) mistakes to avoid when purchasing health insurance.

1. No confirmation of coverage details

Health insurance plans vary greatly. Some plans cover many medical needs, while others are less comprehensive. You want to make sure the plan you are considering will meet your medical needs before you buy it.

You should also check which medical providers accept your insurance coverage. If you’re already a patient of doctors you love, you want to know if they’re accepting your new plan.

Otherwise, you may have to switch to a new medical provider or pay a surcharge for off-network visits.

2. Focusing only on premium costs

Knowing your premium or monthly insurance costs is a must. But don’t get too caught up in that number when looking at the plan options.

The premium is only part of the cost you can pay. A cheaper premium might sound good for your bank account, but it could mean paying a hefty deductible or costly co-payments when you seek medical care.

3. Insufficient coverage

You want to consider the coverage you need before signing up for a policy. Many people assume that they are healthy enough for a basic plan that mainly covers prevention. But that cannot be the case.

If you stick to a simple plan, develop a serious medical problem, or go through a medical emergency, you may have to pay a lot of money to get treatment. Now consider your needs when choosing a plan, but also consider what would happen if the unexpected happened.

4. No prescription verification

Health insurance covers more than just tests and exams. The right plan can also make prescription drugs more affordable. When reviewing plans, you should also review prescription coverage.

If you depend on daily medications, do some research to see if they have them covered at an affordable price. If you don’t, you should still check the expenses to know what to expect should you need a prescription in the future.

5. Misunderstandings cost

If you’re looking for a new health plan, make sure you understand all of the costs associated with your policy. If you get the deductible or co-payment details wrong, you might be surprised when you receive an expensive medical bill or show up for an appointment and are asked to pay a costly co-payment. Do the additional research now so you’re prepared.

When researching health insurance options, do your research and avoid making the above mistakes so you can be confident that your coverage will meet your medical and financial needs.

Investing in health insurance can be worth it. For more information on additional insurance options, visit our insurance resources.

Are you looking for ways to improve your financial situation? These personal financial resources can be helpful.

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