Mistakes That Make Your Health Insurance Premium Higher
Published on October 7th, 2014 | by Joan Makai
There are a lot of complexities built within any health insurance policy. Most people want to avoid high health insurance premium, but don’t know how to go about it or has no enough knowledge to begin with. Good thing that understanding health insurance and its associated costs has become necessary for everybody in the US. Thanks to The Affordable Healthcare Act that has become effective on January 2014. As important as healthcare is to one’s welfare it is necessary to know how to keep it from taking more chunks from one’s budget.
Following is the list of mistakes that can increase the health insurance premium-
- Are you missing the deadlines for buying a health insurance plan? Each year, open enrollment dates are declared for enrolling for the coverage during the subsequent year. Failing to enroll in time can mean additional fee or higher premium, apart from tax penalty.
- Purchase of coverage beyond the open enrollment day can also mean delay in the commencement of coverage. Effectively, the premium is expensive because it does not cover the entire year.
- Buying a plan that is not suitable to personal health conditions. If health problems are anticipated, then buying a policy that commands higher premium is often better because out of pocket expenses that the insured has to incur may be lower on it.
- Premiums can also increase or decrease based on the plan type that is purchased. In general plan types include EPO, PPO, HMO, etc. Implications of such policy in relation to personal health and family’s health need to be understood because otherwise, the premium paid may prove to be more expensive than available alternatives. Switching from plans is not possible, so identifying the right plan is essential.
- Likewise, insurance companies may differ in their valuation of health risks associated with age, gender, health conditions, working conditions, hereditary ailments, etc. If people do not spend time adequately in identifying a good bargain, they may end up spending more towards health insurance premiums than is necessary.
- Over-insurance can result in higher health insurance premiums. There are a million diseases, and not every disease is likely to afflict everybody on the planet. It is, therefore, necessary to identify the most probable diseases and illnesses that the person and his or her family would suffer with. Thereafter, coverage may be bought for relevant ailments or diseases.
It is not only the premiums that make health insurance expensive. Sometimes, wrong choices can make it expensive too. For example, lower health insurance premiums do not necessarily mean lower health care costs. Similarly, hospital may be covered by the network approved by the insurance company. However, doctors in charge for treating patients there may or may not be covered under the network. Sometimes people are in such a rush to pay the bills that they fail to check the medications that are covered under the policy. Effectively, they pay more than is necessary and make healthcare more expensive for themselves than what it should really be.