Shopping for Health Insurance: Pitfalls to Avoid

Americans spent a total of $3.65 trillion on healthcare in 2018, Axios reports. That’s about the same size as Canada and Spain’s entire economies—combined.

What’s even more worrying is the fact that the spending is expected to increase in the coming years. And no, this hasn’t got anything to do with the increased use of services, but more to do with the rising cost of healthcare.

No wonder that more and more people are looking towards health insurance as a solution to reduce some of the burdens of their catastrophic healthcare expenses.

Are you in the market shopping for a health plan too? Great! Just make sure, though, you don’t make the following mistakes as these can get you stuck with the wrong policy:

Focusing too much on the premiums

Picking the cheapest policy could be tempting but doing so can give you a sticker shock. Low premium plans almost always come with high deductibles, coinsurance costs, and copays. What’s the use of such a plan where you’ll have to cover the majority of the expenses from your own pocket? However, that also doesn’t mean that you should completely ignore the premiums. After all, you’ve to respect your budget. Choose a plan that’s affordable and offers the best value on your investment.

Not checking the health insurance provider network

A health insurance provider network is a group of healthcare providers that have contracted with a healthcare insurance carrier to provide services at a discounted rate. Many policies have limited network coverage. This can put you at a disadvantage. Always check a policy’s insurance provider network before buying that policy. Ensure the network isn’t too narrow. If there’s a particular doctor you prefer to consult, check to see if they are in the network.

Missing on the subsidies

The Affordable Care Act provides subsidies to help people pay their monthly insurance premiums. However, to qualify for these subsidies, you need to have an income between 100 and 400 percent of the federal poverty level. Further, you can only avail these subsidies if you purchase your policy through your state’s health insurance exchange. This is a free lunch, so make sure you don’t miss out on it.

As always, before purchasing health insurance, it’s recommended to talk to a health insurance expert who can guide you and help you navigate your options. Here, at One Place Financial, we pride ourselves on providing honest and reliable health insurance services to our clients. Get in touch with us today to discuss your health insurance needs.