For many people, buying healthcare insurance is a complicated process. However, one of our goals is to make understanding insurance more comprehensive for policyholders. Not picking the proper plan can become costly. That’s why it’s so vital to understand what you’re signing up for and making sure that you have a policy that suits your specific needs. Here are four common (but avoidable) healthcare insurance mistakes.
Healthcare Insurance Mistake #1: Not Understanding Certain Terms
We’re not saying that you have to study insurance terms as if you’re preparing for Jeopardy. However, it makes sense to know what some essential words mean. “Copay” and “deductible” are indeed words that you want to know. A copay refers to the fixed amount of money that you owe for medical services. Deductible applies to the amount you have to pay for any care you receive before your insurance provider covers the remainder of its cost. When in doubt, research what the term means.
Healthcare Insurance Mistake #2: Feeling as if You’re Too Young or Healthy to Need Healthcare Insurance
If you’re young and healthy, then that is indeed something that you should celebrate. Having a healthcare policy (and eating right and exercising) ensures that you stay this way. If something unexpected were to happen, it’s devastating to have to pay for any medical service out of pocket or find that you can’t afford the proper care that you need. Typically, when you’re young, your parents manage the healthcare policy up until 26, but you should still always make your health a priority.
Healthcare Insurance Mistake #3: Picking a Plan Only Because of Its Low Premiums
A person who only goes to a few routine checkups once a year may benefit from a specific plan. However, someone who regularly goes to multiple types of appointments will need a lot of coverage. It all depends on your needs. We understand wanting an affordable policy, but if you find that it doesn’t meet your needs, you should consider switching.
Healthcare Insurance Mistake #4: Never Taking the Time to Research What Medicine Your Plan Covers
Another healthcare term that we want you to understand is “prior authorization.” Prior authorization refers to a specific medicine not being covered by a plan, and then your doctor needs to write a request to your insurance company. Sometimes they will approve the medicine, sometimes not. Also, in some cases, even if the insurance company approves this specific medicine, this process often needs to happen each month. If you are set on a particular medicine versus alternatives or generic brands, make sure that you pick a compatible plan.