Health insurance can be confusing, with complex policies and stacks of paperwork. It’s easy to make missteps managing your coverage or utilizing benefits. Being aware of common mistakes allows you to avoid issues and unnecessary healthcare costs.
Not Comparing All Plan Options
Failing to compare the full range of available health plans often leads to picking coverage that falls short of your needs or paying more than necessary. Steps for wise comparisons include:
- Review all metal tier categories for marketplace plans from bronze to platinum or various offerings from your employer.
- Analyze premiums, deductibles, copays, total out-of-pocket limits, and covered services side-by-side between competing options.
- Check that your preferred healthcare providers participate in each plan’s network before selecting coverage.
- Make sure any medications you take are covered on drug formularies with affordable copay tiers.
- Consider adding separate dental, vision or other supplemental plans if the medical benefits alone seem inadequate.
Taking time to carefully contrast all health insurance alternatives helps identify your optimal balance of access, affordability and protection.
Also, Check this as well Tips for Maximizing Health Insurance Benefits
Not Checking Provider Network Status
Seeing out-of-network doctors, hospitals or facilities results in significantly higher personal costs. Always verify participating provider status before any visit or procedure. Ways to check include:
- Logging into your insurer’s website or app to search the provider directory.
- Calling your health plan’s customer service line for confirmation.
- Asking the provider’s office staff to confirm they are contracted in-network.
- Comparing insurer directories if you have more than one source of health coverage.
Avoid big bills by confirming network participation every time instead of making assumptions. Also ensure any referrals are sent to in-network specialists.
Not Following Pre-Authorization Rules
Health insurers require pre-authorization for certain services and drugs to determine medical necessity and detailed coverage terms. Skipping this step opens up claims denials. Requirements often include:
- Inpatient hospital stays and transfers
- Outpatient surgeries
- Durable medical equipment
- Home healthcare
- Skilled nursing facility care
- Specialty tier prescription medications
- Out-of-network referrals
Carefully review pre-authorization rules and get needed clinical approvals in advance to avoid surprise coverage rejections. Doing this homework prevents delays in accessing appropriate treatment.
Not Checking Health Plan Changes at Open Enrollment
Simply renewing the same health coverage from year to year can mean you miss cost-saving options or better benefits now available. Steps to take during open enrollment:
- Review all benefit, premium and provider network changes from your current insurer.
- Compare plans to see if another carrier now offers superior access, lower cost sharing, or additional services.
- Confirm prescription formularies and pricing tiers haven’t changed in ways that impact medication affordability.
- Evaluate if switching plans lets you maintain all preferred providers without network disruptions.
- Adjust deductible and out-of-pocket limits if finances and budget expectations changed since last year.
The time spent upfront determining the right health plan pays dividends all year long through balanced benefits and costs.
Being Unclear on Covered Services
Understanding exact contract benefits helps estimate out-of-pocket responsibility for care and avoid non-covered services. Steps to take include:
- Carefully reading your plan’s Benefit Summary documentation provided by the insurer.
- Checking for exclusions like adult dental and vision benefits limited to preventive services only.
- Confirming if physical, occupational and speech therapy caps or visit limits exist.
- Reviewing pre-authorization requirements for hospital stays, surgeries and expensive treatments.
- Comparing prescription drug formulary tiers side-by-side across medication types to understand copay implications.
Clarifying covered services minimizes the risk for confusion and unexpected claim denials down the road. Don’t sign up for health insurance benefits you don’t fully evaluate first.
Not Budgeting Properly for Healthcare Costs
Many underestimate annual medical expenses beyond premiums. Develop realistic budgets accounting for:
- Maximum out-of-pocket limits you’ll be responsible for under plan cost sharing.
- Deductible amounts you’ll have to pay in full based on expected healthcare utilization.
- Copays for primary care visits, specialists, urgent care, medications, or other routine needs.
- Coinsurance you may owe for services like lab work, imaging tests or hospital events.
- Additional dental, vision and other supplementary coverage costs if paying premiums for multiple insurance policies.
Proactively planning for healthcare costs helps avoid financial shocks from mounting medical bills throughout the year.
Skipping Health Insurance When Healthy
Going uninsured to save on premiums when young and healthy often backfires over time by:
- Missing out on age-based premium discounts for enrolling while young that lock in lower rates over the long term.
- Risking unexpected accidents and illnesses generating medical bills unaffordable without insurance.
- Paying tax penalties for lack of qualified health coverage.
- Being unable to get coverage for pre-existing conditions when reapplying if health declines.
- Lacking access to preventive care to stay healthy, catch issues early, and establish protective factors like immunization immunity.
Don’t take health for granted. Being uninsured when you need it most can generate massive expenses and leave you medically vulnerable.
Picking Insurance Based on Premiums Alone
Focusing exclusively on premium costs when selecting coverage often results in sparse benefits or excessive spending when care is needed. Also factor in:
- Deductibles and total out-of-pocket limits that determine real cost exposure.
- Covered services, exclusions, visit limits, and whether providers you need participate.
- Prescription drug formularies and tiers for pricing medications you take.
- Convenience factors like telehealth access and virtual tools.
- Customer service reputation and member resources like nurses lines or apps.
Cheaper premiums alone don’t guarantee adequate insurance protection. Weigh all variables that comprise health plan value and total costs.
Not Checking Bills and EOBs Closely
Most people just pay health bills without checking for errors that commonly include:
- Being billed twice for the same service, medication, or procedure.
- Getting charged for services you didn’t receive.
- Paying for uncovered services not flagged by the insurer.
- Being balance billed amounts exceeding your plans allowed cost determinations.
Always review medical bills alongside your Explanation of Benefits statements before paying to identify overcharges or mistakes so they can be disputed in a timely manner. Don’t simply assume everything is correct.
Thinking All Plans Are Equally Affordable for Drugs
Prescription costs can vary tremendously between health insurers based on:
- Formulary coverage – One plan may not cover your medication while another does.
- Preferred generic status – Paying less for generics on one formulary over another.
- Brand name drug tier placement – Upper tiers mean higher copays.
- Pharmacy restrictions – Some plans limit where you can fill prescriptions.
- Utilization rules – Requirements for step therapy and prior authorizations differ.
Compare drug plan details carefully. Don’t presume renewal or new plan choices equal your current affordable medication access.
Being Unprepared for High Out-of-Network Bills
Seeing out-of-network doctors often leaves patients with substantial balance billing costs over the allowed amounts set by insurers. Be proactive by:
- Confirming specialists seen are in-network when referred by your physician. Don’t assume they coordinate on status.
- Bringing your insurance card to ER visits so your carrier is properly billed if admitted to an out-of-network hospital.
- Calling your insurer from the provider’s office to initiate emergency out-of-network coverage before proceeding with recommended medical services.
The best defense is avoiding out-of-network providers altogether, but when emergencies happen, taking steps to have the insurer authorize special billing protections is key. Don’t get caught off guard.
Ignoring Coordination of Benefits Rules
Many people with dual health insurance coverage don’t understand proper coordination of benefits processes. Mistakes like:
- Not knowing which plan pays first based on “primary” versus “secondary” payer rules.
- Failing to submit claims to the secondary payer for additional reimbursement.
- Letting providers file claims without indicating other coverage is available.
Understand how to maximize total reimbursement across all your insurance when benefits overlap. Don’t overlook potential payment sources.
Being Unprepared for Prior Authorization Denials
Insurers denying prior authorization requests for expensive drugs or procedures based on benefit criteria, such as:
- Experimental or investigational treatment status
- Questions on medical necessity
- Requests for more cost-effective alternatives first
Be ready to appeal by:
- Having your doctor submit evidence on expected outcomes and necessity
- Citing applicable clinical practice standards and guidelines
- Providing relevant medical journals and research
- Outlining potential risks if authorization is denied
With supporting details, your doctor can often successfully demonstrate true need to satisfy utilization review concerns.
Not Understanding Special Enrollment Rules
Special enrollment period eligibility mistakes like:
- Not notifying your insurer about major life events in time.
- Assuming you need to wait for the next open enrollment.
- Being unaware of 60 day enrollment window timelines.
Know qualifying events like new jobs, losing coverage, moves, marriage, or having a baby allow for off cycle plan changes. Don’t miss key deadlines to make coverage modifications.
Overlooking Available Subsidies
Limited income households may qualify for substantial premium and out-of-pocket medical cost assistance through:
- Tax credits lowering monthly premiums for marketplace plans.
- Cost-sharing reductions on copays, coinsurance and deductibles.
- Medicaid providing low or no cost comprehensive health benefits.
- Reduced-cost coverage for children unable to afford other health insurance.
Check all offered aid when shopping for individual insurance. Leaving subsidies on the table results in overpaying.
Not Planning for Retirement Health Needs
Avoid gaps in medical benefits or unexpected costs when retiring by:
- Researching when Medicare eligibility begins and what parts you need to enroll in.
- Coordinating employer plan retiree coverage with Medicare if offered.
- Seeing if a Medicare Advantage plan provides cost and coverage enhancements.
- Budgeting for Part B, Part D, Medigap or other supplement plan premium expenses.
- Considering long-term care insurance if at risk for needing nursing home or home health care later in life.
Proper planning ensures continued, affordable healthcare access after leaving your job and shifting away from group health insurance dependency.
Frequently Asked Questions About Health Insurance Mistakes
What are some common claim filing mistakes to avoid?
- Not submitting claims in a timely manner. Know your insurer’s claim filing deadline.
- Forgetting to include supporting documentation like detailed medical records.
- Omitting required pre-authorization codes or policy identifiers.
- Failing to provide coordination of benefits details on the claim form when applicable.
- Letting providers file with missing or incorrect patient and health plan information.
What should I do if I picked the wrong health insurance plan?
If realizing within 30 days of enrollment you selected the wrong marketplace plan, you can rescind application under a federal rule. If after 30 days, make changes during next open enrollment or see if a special enrollment period applies allowing adjustments.
Can I change plans mid-year if my prescription is no longer covered?
Loss of drug coverage allowing the same treatment of your condition can trigger a special enrollment period for marketplace plan changes. But formulary down tiers requiring higher copays don’t necessarily permit mid-year plan changes through a special enrollment period.
What if my health insurance gets cancelled for not paying premiums?
If cancelled for premium non-payment, gaps in coverage may exist before new insurance takes effect. You lose any accumulated deductible credit. When re-applying, check if premiums changed or pre-existing condition exclusions now apply. Avoid cancellations by paying premiums on time.
When should I request a prior authorization?
If facing an expensive procedure, extended admission, or specialty drug not normally covered, have your physician request prior authorization from the insurer in advance to confirm coverage terms and medical necessity prior to commencing treatment.
Being mindful of common health insurance missteps lets you avoid embarrassing and costly mistakes managing coverage and care. Take proactive measures to maximize benefits and savings.