5 Mistakes to Avoid Making When Signing Up for Health Insurance

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Be thorough when selecting a health insurance plan, so you don’t create costly problems or have to go without proper medical care.

Key points

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

For most Americans, health insurance is an expense that can be well worth the cost. Routine medical care and emergency health concerns can quickly get expensive without medical coverage. The last thing anyone wants to deal with is expensive medical debt.

If you’re in the process of signing up for health insurance coverage, you want to ensure that you get a plan that meets your needs. Keep reading to learn which common (and costly) mistakes you’ll want to avoid as you sign up for health insurance.

1. Not confirming coverage details

Health insurance plans vary greatly. Some plans cover many medical needs, while others are less comprehensive. You want to ensure that the plan you’re considering will meet your medical needs before buying it.

You should also check to see which medical providers accept your coverage. If you’re already a patient of doctors that you love — you want to know if they will take your new plan.

Otherwise, you may need to switch to new medical providers or pay a premium cost for out-of-network visits.

2. Focusing only on premium costs

Knowing your premium or monthly cost for insurance is a must. But don’t get too caught up in this number as you look at plan options.

The premium is only a portion of the costs that you may pay. A lower-cost premium may sound great for your bank account, but it could mean you must meet a high deductible or pay expensive copays when you get medical care.

3. Not getting sufficient coverage

You want to consider the coverage you need before signing up for a policy. Many people assume they’re healthy enough for a basic plan mainly covering preventive care. But that may not be the case.

If you stick with a basic plan, develop a severe medical issue, or go through a medical emergency, you may have to pay a lot of money to get treatment. Consider your needs now as you choose a plan but also consider what would happen if the unexpected occurred.

4. Not reviewing prescription coverage

A health insurance plan covers more than just tests and exams. The right plan can also make prescription drugs more affordable. As you review plans, you should also check prescription coverage.

If you rely on daily medications, research to see if they’re covered at an affordable cost. If you don’t, you should still review expenses to know what to expect in case you need a prescription in the future.

5. Misunderstanding costs

If you’re in the market for a new healthcare plan, ensure you understand all costs associated with your policy. If you misunderstand the deductible or copay details, you may be in for a surprise when you get an expensive medical bill or show up for an appointment and are asked to pay a costly copay. Do the extra research now, so you’re prepared.

As you look at health insurance options, research thoroughly and avoid the above mistakes so you can feel confident that your coverage will meet your medical and financial needs.

Health insurance can be well worth the investment. To learn more about additional insurance options, review our insurance resources.

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