How to Avoid Common Health Insurance Mistakes
Health insurance is insurance coverage gotten for medical needs such as routine checks, surgeries, prescriptions, and many others. Considering our current realities, getting health insurance coverage has become one of the necessities for healthy living. Getting a health insurance plan can be a very delicate thing and you must select the right health insurance plan.
There are a lot of factors that affect your health insurance plan. You will need to take a lot of care and weigh various factors, plans, and options to avoid making common health insurance mistakes that policyholders make. Below are common health insurance mistakes that policyholders make and how to avoid these mistakes.
Missing the enrollment period
The open enrollment period is a period where you can sign up for a health insurance plan or change your plan. Generally, there is an open enrollment period, annual enrollment period, and a special enrollment period. If you miss your enrollment period, you might be subjected to a fine or lose your insurance coverage if you try making changes to your insurance policy. A lot of people also make the mistake of going uninsured for the year because they missed the enrollment period. To avoid this mistake, take note of all the changes you would like to make to your insurance policy and keep proper records and reminders of your enrollment period so that you do not miss it. This will save you the cost of making changes outside the enrollment period. If you missed the enrolment period for signing up for a policy, you can take advantage of short-term policies or other special insurance packages that will allow you to get coverage for the year.
Not Consider all necessary factors.
Factors such as age, gender, pre-existing health condition, family history, occupation, and others affect the health insurance of policyholders. Many policyholders make the mistake of not realizing that health insurance is based on an individual thing and thus, all personalized factors should be properly evaluated alongside the general factors. To avoid this mistake, you should make a list of personal health conditions and family history. Ensure you have a comprehensive list of things that can affect your health insurance and use these things when searching for an appropriate health insurance provider and when picking a plan. This way, you will get a plan suitable for your specific needs.
Hiding important Information
A lot of people lie or omit to put necessary information such as family history, personal medical history, and certain lifestyle choices that affect health insurance policies. These important details should not be concealed when buying your health insurance policy. This mistake can cause the policy provider to avoid liability and can even lead to a conviction for insurance fraud. This can be avoided by making sure that the facts stated on your form are true. Any lies can cost you your entire coverage when discovered by the policy provider.
Underinsuring and Over insuring
Underinsuring in health insurance is getting insufficient insurance coverage. This is another common mistake that policyholders make. Underinsuring can be expensive as policyholders become responsible for paying a whole lot of things not covered in the insurance policy. This then defeats the essence of the insurance. Overinsuring is the opposite of underinsuring. Over insuring is getting more coverage than you need.
These two mistakes can be avoided by using the same techniques. Before signing the insurance policy, a proper valuation should be done. Consider all your health conditions and needs and what is covered by the different policies available. Pick the best available option at the best available plan.
Not taking advantage of tax benefits
There are certain tax benefits that policyholders are entitled to. A lot of people make the mistake of not taking advantage of this benefit. This will save some money for you. To avoid this mistake and save money on your tax-deductible, you can open a Health Savings Accounts. A Health Savings Account is an account where you can set aside money for medical expenses on a pre-tax basis. This sum is tax-deductible and can be used to pay for your co-pay.
Not checking the co-pay
A lot of policyholders do not go through the policy to take note of whether there is a co-pay and how much co-pay they are to pay. if you do not intend to pay a co-pay, then ensure that you read and understand the policy before purchasing the policy. Note that for policies without co-pay, you might have to pay higher premiums.
Going to the Wrong Hospital or Out of Network Doctors
Most health insurance providers have a list of hospitals and network doctors you as a policyholder can go to and take advantage of the health insurance. The insurance coverage cannot be used in any hospital outside this list. Some policyholders go to the wrong hospitals and by this, they do not utilize their health insurance coverage. This will cost you unnecessary expenses as a policyholder. When choosing your health insurance, ensure you pick a policy with hospitals that are convenient for you to use. Thus, avoid going to the wrong hospitals. Get a comprehensive list of hospitals you can use your policy with and plan your hospital visits around them.
Relying solely on the plan provided by an employer
This is a common mistake made by many employees on a group plan. This is a mistake as your employer might decide to reduce your benefits under the health insurance package. Also, note that these group insurance plans are mostly limited and might not cater to special health conditions if you have any. It is therefore important that you get an additional health insurance policy in addition to the policy provided by your employer.ConclusionWhen purchasing or changing your health insurance policies, you must take note of all the tips mentioned above to avoid making common health insurance mistakes. These mistakes lead to financial and health issues that are best avoided. So, do what is best for you and your family by avoiding these mistakes.
If you are looking for life insurance, health insurance, alternatives to health insurance such as health share, or supplemental insurance, Vivna Insurance can help. One of our licensed and professional agents can help you shop for all of the right options for you and your family. Give us a call today at 866.793.2301 or email us at [email protected] for a no-obligation discussion and quote.