Choosing the right health insurance plan can feel overwhelming — dozens of options, different coverage levels, and plenty of confusing terms. Unfortunately, many people make costly mistakes when picking their plan, often without realizing it until it’s too late.
To help you avoid these pitfalls, here are the top 5 mistakes people make when choosing a health plan — and how you can avoid them.
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1. Focusing Only on the Monthly Premium
It’s tempting to pick the plan with the lowest monthly payment, but the premium is just one part of the cost. Low premiums often mean higher deductibles, co-pays, and out-of-pocket maximums.
Better approach: Look at your total annual cost — premiums plus potential medical expenses — and choose a plan that balances affordability with adequate coverage.
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2. Ignoring the Network of Doctors and Hospitals
Not all doctors and hospitals are covered under every plan. If your preferred physician or specialist is outside your plan’s network, you could end up paying significantly more.
Better approach: Check the plan’s provider network before enrolling to make sure your preferred healthcare providers are included.
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3. Overlooking Prescription Drug Coverage
Some people forget to verify if their regular medications are covered or how much they’ll cost under the new plan. This can result in unexpected and high out-of-pocket expenses.
Better approach: Review the plan’s formulary (list of covered drugs) and see if your prescriptions are included — and at what cost tier.
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4. Not Considering Future Healthcare Needs
Many choose a plan based only on their current health, but unexpected illnesses or life changes can happen.
Better approach: Think ahead — if you plan to have a baby, need surgery, or have a family history of certain conditions, make sure your plan will provide adequate coverage for those scenarios.
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5. Skipping the Fine Print
Health insurance plans are full of details — coverage limits, exclusions, prior authorization requirements, and more. Skimming over these can lead to unpleasant surprises when you file a claim.
Better approach: Take time to read the plan documents carefully. Pay attention to limitations, exclusions, and rules for getting care.
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Final Thoughts
Choosing a health plan is one of the most important financial and health decisions you’ll make each year. By avoiding these common mistakes — and taking the time to compare your options — you’ll be in a much better position to get the right coverage without breaking the bank.