AVOID THESE MISTAKES WHEN BUYING HEALTH INSURANCE
If you are planning to purchase a health insurance, good for you. You are inching closer to financial freedom. However, be wary of the following mistakes you might commit when buying health insurance.
Not Shopping Around to Several Providers
You can find numerous insurance providers in the market. But people often take the first provider which suits their overall needs. Cost structures and coverages vary depending on the healthcare provider. With research, you can choose the best health insurance at affordable rates and save time and money.
Ignoring the Fine Print
Most people are guilty of not reading the document thoroughly. For instance, certain health insurance provide great in-network coverage, but weak out-of-network coverage. This might lead to a large out-of-the pocket payment if a situation arises where you need to use an out-of-network provider. In other words, if a particular health insurance looks great on the outside but excludes uncommon surgeries, chances are it will result in hefty out-of-pocket charges.
Focusing Only on the Premium and Deductible
Of course, it makes sense to look at the premium and deductible only. A policyholder needs to know his monthly premium costs so he can budget and account for them, as well as the deductible to grasp the sense of overall coverage. But you also need to account other costs and situations. Some health insurance policies entail a deductible of $2,000, but only cover 80% of surgical procedures. Hence, if you have an accident and need to spend $13,000 for the surgery, the payment will exceed the above-mentioned deductible.
Forgetting the COBRA
COBRA insurance is a US government service which provides continuing coverage for up to 18 months to employees who have recently separated from their companies. In the event of resignation or termination, COBRA enables you to retain the coverage you are used to while looking for other health coverage or employment. The employer often pays most, if not all, of the coverage’s premium. If you opt to take out COBRA insurance, you need to pay the entire premium amount. If you have left your job, look into both state and federal health insurance exchanges formed under the Affordable Care Act.
Obtaining Too Much Insurance
One is enough, two is too much. We are not stopping you from getting a coverage or two, but do not over-insure. High-end health insurance may cover you against any situation imaginable, but the monthly premiums will be very high. If you are healthy and rarely go to see a doctor, it is better to obtain a healthcare plan with a lower premium.
No One is Too Healthy for Health Insurance
It is understandable not to pay for the best coverage since you hold a strong track record of good health. Nevertheless, it is still important to get one. The good thing about insurance is it protects a person against unexpected life events. Illness and injury are completely random and unpredictable. It can happen to any person at any time. It is possible to find out if you are likely to get sick or not, but no one can be absolutely sure.
Missing the Enrollment Periods
As much as you can, take advantage of open enrollment periods to sign up for health insurance. Frequently, people wait until the very last second to buy health insurance or wait until they desperately need it. But, most providers offer open enrollment periods when you can reevaluate your need for health insurance and modify or purchase coverage as necessary. Regardless of your overall situation, if you miss an open enrollment period, either you need to remain uninsured until the next enrollment period or to pay an increased amount for taking out insurance.
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