Health insurance can be confusing—and one wrong move could cost you hundreds (or even thousands) of dollars. Whether you’re picking a new plan or using your current coverage, many people make the same avoidable mistakes.
Here are five common health insurance slip-ups and how to dodge them:
1. Picking the Cheapest Plan Without Checking Coverage
The Mistake: Going for the lowest premium without considering deductibles, copays, or what’s actually covered.
Why It’s Bad: That “$99/month” plan might leave you paying way more out-of-pocket when you actually need care.
✅ How to Avoid It:
- Compare total costs (premium + deductible + copays).
- Check if your regular doctors and meds are covered.
- Ask: “What’s the worst-case yearly cost if I get sick?”
2. Ignoring the Provider Network
The Mistake: Assuming all doctors/hospitals accept your insurance.
Why It’s Bad: Going “out-of-network” can lead to huge bills—some plans won’t cover a penny.
✅ How to Avoid It:
- Search your insurer’s online directory before booking appointments.
- Always confirm with the doctor’s office (“Do you take [Your Insurance]?”).
- In emergencies, go to the nearest hospital—but follow up in-network afterward.
3. Not Checking Prescription Coverage
The Mistake: Thinking all medications are covered equally.
Why It’s Bad: Your plan might only pay for generic versions—or exclude certain drugs entirely.
✅ How to Avoid It:
- Look up your insurer’s formulary (list of covered drugs).
- Ask your doctor for generic or lower-cost alternatives.
- If your med isn’t covered, appeal or apply for an exception.
4. Skipping Preventive Care
The Mistake: Avoiding check-ups to “save money.”
Why It’s Bad: Many plans cover free annual physicals, vaccines, and screenings—catching problems early saves $$$ later.
✅ How to Avoid It:
- Use your free preventive benefits (ACA-compliant plans include them).
- Schedule yearly check-ups even if you feel fine.
- Know your plan’s wellness perks (like discounts on gym memberships).
5. Not Reviewing Your Plan Yearly
The Mistake: Auto-renewing without checking changes.
Why It’s Bad: Networks, drug coverage, and costs change every year—your perfect plan might not stay perfect.
✅ How to Avoid It:
- During Open Enrollment, compare plans (even if you like yours).
- Look for new benefits (telehealth, mental health, etc.).
- Update your info if your health needs changed (new meds, chronic conditions, etc.).
Final Tip: Don’t Be Afraid to Ask for Help!
If insurance jargon makes your head spin:
- Call your insurer’s customer service (yes, they can explain things!).
- Use a licensed broker (they’re free—they get paid by insurers).
- Check HealthCare.gov or your state’s marketplace for guidance.
Better to double-check now than get a surprise bill later!