3 Expensive Health Insurance Mistakes to Avoid

Millions of Americans today have easier access to health insurance under the law, but the system remains just as complex. So, to have coverage when you need it most and cut out unnecessary fees, penalties, or just a bad deal, here’s what we think you should look for when shopping for health insurance.

Going out Of the Network Will Cost You

A preferred provider organization (PPO) allows you to get your care from doctors or hospitals outside the plan’s network. In contrast, a health maintenance organization (HMO) won’t pay for off-network care. The best way to bring down out-of-pocket expenses is to read the fine print and stay within the network unless you absolutely can’t find an in-network provider.

The only time you might not have control over this is in case of a trip to an emergency room.

Not Getting Health Insurance Early

If you decide not to get healthcare coverage because you are healthy and don’t need it right now, in case of an accident, you’ll have to wait nine full months to get health insurance.

This also means that you will not have the option of retroactively paying for care received earlier. When it comes to emergency rooms, you will always receive care even if you don’t have insurance. The bill, as substantial as it may be, will usually follow.

Low Premiums Aren’t Everything

You can pay for the healthcare you receive upfront, as a higher premium, or later, as a higher co-payment, a bigger deductible, or both. While neither is inherently better than that of others, it finally comes down to your needs and finances.

Paying for medical bills is among the most common financial problems Americans are facing today, so understanding what to watch for is not only essential but crucial to your long-term finances.