Common mistakes include opting for a cut-rate policy that can stick you with tens of thousands of dollars in out-of-pocket expenses.
Whether you're perusing your employer's open-season packet or weighing your options after getting a pink slip, you may be facing some critical decisions about health coverage. Avoid these three common pitfalls:
1. Focusing on premiums alone
A higher-premium policy with low co-payments could be a better deal than a lower-premium policy. For example, if your doctor is out of your insurer's network, how much will you pay for each visit? And how many of the medications you take are brand-name drugs?
Your best bet, if you can find it, may be a policy that still charges co-pays for out-of-network visits and prescription drugs.
2. Skimping on Coverage Limits
One of the costliest mistakes you can make is to buy a policy with inadequate coverage. These policies may look attractive because they have low premiums and low deductibles. But a maximum benefit of as little as $50,000 to $100,000 per accident or illness could leave you with tens of thousands of dollars in out-of-pocket expenses. Also beware of policies with long lists of exclusions and low dollar limits for each type of procedure.
A better way to lower your premiums is to buy a high-deductible policy with a coverage limit of at least $1 million ($3 million or $5 million would be even better). If you buy a policy with a deductible of at least $1,150 for single coverage or $2,300 for family coverage in 2009, you can also make tax-deductible contributions to a health savings account and use the money tax-free for medical expenses in any year.
Questions & Quotes Contact Jason:
Diversified Insurance Quotes
714-988-3325
www.diversifiedinsurancequotes.com
