Purchasing Health Insurance can be a confusing task especially for those that don’t have much experience with it. The Affordable Care Act requires all citizens to have health insurance effective January 1, 2014 or to pay a penalty tax. From an article in usnews.com by Geoff Williams we were able to identify the five most common mistakes that people make when purchasing their coverage.
1) Many people don’t understand how the policies work or exactly what is included in their plan. This could cause people to overpay in a situation where extra fees could be avoided. An example of this would be if your hospital falls within your network but your doctor does not. This will cause you to pay out-of-network fees when it could have been avoided by simply taking the time to understand what is and is not covered. All plans offer 100% coverage for preventative care so be sure to get your annual physical! Also be sure to take advantage of your plans perks! If you have gym membership discounts, go ahead and use them!
2) People fail to notify their insurer of life changes. With the new policies in place from the ACA it is now possible to receive tax credits to help pay for your insurance. If you are receiving an Advanced Premium Tax Credit, it is important to report any and all changes in the size of your household or any increases or decreases in income. If your income is higher than expected then it is possible that any or all credits must be repaid. If your income is lower than expected or you add new members to your household then it is possible that new tax credits will be awarded. It is best to stay ahead of the game in this instance because it could save you Money!
3) Not consulting their insurer when they have questions about their plan. A recent survey conducted at Colonial Life & Insurance revealed that of their employees, 69% of them did not read the specifics of their plan and didn’t fully understand what is covered. The insurance companies have consultants that are there to help you. They can’t help you if they don’t know that a problem exists. Utilize this asset prior to getting care to make sure that you receive the best coverage possible.
4) Many people over insure themselves. This can seem like an appealing option because you may want to give yourself the best coverage in case anything unexpected happens. It is better to be safe than sorry. However consider weighing the benefits against the price. Paying a higher premium with a low deductible is a good idea if you have an expectation of using it, but for most people this just doesn’t make sense for their bottom line.
5) The most common mistake that people make when looking at plans is that they are too focused on the money aspect of the plans. Most people want to find a plan that has the lowest premium or the lowest deductible and they don’t really pay attention to the actual benefit design of the plan. For many people the number one goal to save money and get the best coverage but it is surprising how many people look at the price and don’t actually see what is offered in the plan. Don’t let that be you!
In summation, it is as important to understand the plan details as it is to choose an affordable premium. At insureasy.net we have over 140 years of experience in the health insurance industry! We can help you find the plan that best fits you and we can do it in less than ten minutes. We do not require any personal information and we are always here to help answer your questions.