5 Common Mistakes When Buying Health Insurance
An ever increasing number of consumers are suddenly finding themselves in the market for health insurance, but the wide variety of options available often results in a great deal of confusion. Few individuals can disagree with the fact that appropriate health coverage is incredibly necessary, but many people are afraid that they will be unable to find an affordable policy. It is very important to avoid the 5 most common mistakes when shopping for health insurance.
Perhaps the most common mistake that consumers make when searching for health insurance is selecting a program that may not be accepted by their family doctors. There is nothing worse than selecting a small insurance company and later finding that none of the local medical facilities or healthcare providers has even heard of the coverage.
Another mistake that many shoppers make is choosing a health insurance policy based on price alone. There are many factors that must be considered when evaluating a particular program, and the lowest price may actually not adequately perform its intended purpose. On the other hand, the most expensive option available may also not be suitable to the specific needs of the consumer.
Many consumers purchase what they believe to be a health insurance policy, but then later find out that it is indeed a discount plan and is not a suitable replacement for insurance coverage. Many discount plans are marketed nationwide and some utilize very misleading advertisements and sales techniques.
Most health insurance seekers steer clear of health maintenance organizations (HMO’s), but the truth is that this may actually be the most appropriate choice for an individual with a chronic illness or disease. Many HMO’s have extensive networks and offer much lower co-pays provided that the insured stays within the network.
The most expensive mistake that many individuals make is failing to select a health insurance policy that fits their needs without providing unnecessary coverage. Many healthy consumers that do not routinely go to the doctor’s office may actually be better served by a program that does not cover routine care. Major medical policies will provide coverage in the event of a major emergency or catastrophe, but does not pay for prescriptions or office visits. While the co-pays and deductibles may be significantly higher, the premiums are often much less than most people think possible.
Although each of these mistakes can prove to be very costly, failing to shop around may indeed be even worse. Many individuals avoid comparison shopping simply because of time constraints and because the process seems too difficult, but the fact of the matter is that it can be quite painless. There are a number of insurance comparison websites available that will allow the user to input a small amount of information and immediately receive multiple quotes and options to review. Finding the best coverage is both fast and easy and the couple minutes that it does take are well worth it in the search for affordable health insurance.