3 Health Insurance Mistakes You Don’t Want to Make

There are a lot of options available when it comes to health insurance but as more families are tightening the belt strings just to survive, they are making costly mistakes in the health insurance arena. It may seem like a good expense to cut out when everyone is healthy but that kind of thinking can leave you in serious debt and poor condition should something happen.

Here are three of the more common mistakes people make when it comes to making health insurance decisions:

Basing Decisions on Premiums Only

Obviously the cost of different health plans is a main factor in many considerations but if you are only looking at the cost of the premium as opposed the actual coverage you are receiving, you can be in for a big surprise should injury or illness occur. The lowest premiums typically offer the least amount of options and coverage. You need to weigh the pros and cons while considering the worst-case senario. For instance, it may seem like a good idea to skip the policy with prescription drug coverage, only to find out later that you are put on medication that costs hundreds of dollars a month. Take time to read through each plan’s options and choose not the least expensive plan but the one most reasonably priced which offers the health care options and coverage important to you and your family.

Not Having Enough Coverage

Face it, you may have to pay extra money each month to ensure you are covered completely should something happen to you but it beats having to shell out thousands – or tens of thousands – of dollars in out of pocket expenses should you need emergency surgery, an extended hospital stay, or long-term medical care. Paying smaller amounts out of your pocket now can save you a lot of cash down the road. It will also spare you from drowning in a multitude of collections and medical bill debt you can’t afford to pay.

Unemployment Issues

When a person loses a job, there is a federally mandated law that allows employees to retain health insurance coverage for up to 18 months. COBRA (Consolidated Omnibus Budget Reconciliation Act) was established in 1985 to help the recently unemployed keep insurance and is the most popular form of insurance used. However, there may be other, less expensive options for the unemployed/uninsured. Do your homework and see if there are more reasonable policies you can afford that fit your needs. COBRA insurance can be very expensive, especially after the time period ends and you must pay the full premium. Compare other policies at the full rate for COBRA coverage. If you have previously diagnosed medical problems, COBRA may be your only option but if you are otherwise healthy, another insurance carrier may offer more competitive rates.