Your Biggest Mistake When Choosing a Health Insurance Plan

Have you ever tried to figure out what health insurance plan is right for you? I have. Choosing the right health insurance plan is not easy. There’s a ton of information out there and it can be overwhelming as to where to start. When you’re tasked with choosing an insurance plan for your company, how do you choose the right one?

Insurance can be confusing and it’s difficult to know who to trust. I’ve spent hours looking up information on the internet and chatting with friends who are also trying to purchase health insurance. Here is my experience of choosing a health insurance plan, the mistakes I made, and the steps I took to learn about the different professionals available.

Don’t assume that your current plan will always be the best option.

Most people are comfortable maintaining the status quo because it’s familiar and therefore easy to maintain. What most of us don’t realize is that by doing this we’re also restricting ourselves from opportunities that could dramatically improve our life. You see, finding balance isn’t about doing what you want to do. It’s about knowing what you want, and not assuming your current plan is always going to be the best option.

Don’t skip the open enrollment period.

When choosing a health insurance plan, don’t skip the open enrollment period. Don’t do what I did and choose the wrong plan. Through Open Enrollment, you can change your health insurance coverage to one that is a better fit for you and your family.

Don’t assume that because you are choosing a family plan, you have to choose the most expensive one.

You know that insurance can be a great idea for an individual, group or even as a business. But it is also true that you need to choose the one that have the most benefits. This means that should you are choosing a family plan, don’t assume that because you are choosing a health insurance plan with five or more members, you have to choose the most expensive one.

Don’t forget to find out what is covered by your employer.

Oftentimes, people know that they need health insurance but have no idea what insurance plan you should choose. The process may feel overwhelming, especially if you have a complex medical condition or have never needed coverage before. Not to worry though, there are things that you can do to figure out what health insurance coverage is going to be more suitable for you. In this post, we will review some of the biggest mistakes people make when choosing health insurance and how not to make them. Every person has different needs and circumstances so it can be important to understand what kind of coverage you will actually be able to access for your specific situation.

Don’t get taken in by marketing hype or confusing terms.

Everyone needs health insurance, but choosing the right plan can be confusing. With dozens of plans and thousands of packages to choose from, how do you know which one to go with? Marketing hype and confusing terms are everywhere, but you don’t have to fall for them. Here’s where you will look at each section of your health plan disclosure and find the right health insurance plan for you.

Don’t make the mistake of not comparing plans.

It’s a big task to compare health insurance plans. After all, nothing scares us away more than mountains of paperwork. However, if you make the mistake of not comparing plans, you may end up paying too much for your coverage and for features you don’t need.

There are 4 main things that will help you find the right plan for you:

  • knowing what is covered in your plan,
  • how much it costs,
  • finding an ACA exchange plan or individual private coverage,
  • getting the right health insurance options.

What terms to look out for before buying an Insurance plan?

Do you know what your health insurance plan covers? Do you have any idea how much your plan pays for a hospital stay, or for an X-ray, or for a prescription drug? If your answer is “no,” you’re not alone. A recent survey found that only about half of Americans can answer even one of those questions correctly.

The problem is that health insurance policies are written in jargon-filled language that’s hard to understand, and many people don’t even bother to try. They’re just grateful they have coverage. But if you don’t know exactly what your plan covers, how can you be sure it’s the right one for you?

Here are some terms to look out for (and what they really mean).

-Preferred Provider Organization (PPO): You pay less money if you use doctors, hospitals and other providers in the plan’s network. In general, the more providers in the network, the lower your costs will be.

-Health Maintenance Organization (HMO): Like a PPO, an HMO requires that you use doctors and other providers inside its network. But unlike a PPO, an HMO usually doesn’t allow you to go outside its network without paying full cost (except possibly in an emergency).


Choosing the right health insurance plan can make all the difference in how much you pay out of pocket and what services are provided when you need them.

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