4 Tips to Avoid Health Insurance Mistakes

Dealing with health insurance is not one of the most enjoyable experiences in people's lives. However, health insurance is one of the most important things you can have. With the skyrocketing cost of health care, going through life without health insurance is taking a huge gamble. All it would take is one trip to the emergency room or surgery and your bills may be more than you can afford. Going bankrupt because of medical bills is becoming more and more common. Therefore, if you don't have health insurance, you definitely need to get it. With that being said, there are a few common mistakes that you can make with your insurance that can cost you. Here are a few tips to avoid health insurance mistakes.

1. Stay In Network

With many health insurance companies, they rely on networks to do business. They have negotiated prices for every medical procedure through their network of doctors and medical facilities. When you visit these approved medical clinics for your treatments, your company will work with you and pay the bills they need to pay. However, if you decide to visit an establishment that sits outside of this network, you will be hit with a huge bill. Your deductible will be higher and so will your total out-of-pocket expenses. The prices that the medical facilities charge will be larger and you will be affected very negatively by it. Unless it is an emergency, you need to do everything you can do to visit facilities and doctors that are in your network.

2. Take Advantage of HSA's

Health savings accounts are one of the most popular ways to fund your health care-related expenses. A health savings account allows you to save money back tax-free. You can also deduct the amount that you deposited from your income taxes. Putting money into your health savings account allows you to budget for your medical expenses. Once you reach the amount of your total out-of-pocket expenses for the year, you don't have to worry about any medical expenses for the year. Failing to take advantage of a health savings account could be a big mistake. You are at an advantage because of the tax benefits and the convenience.

3. Shop Around

One of the biggest mistakes that many people make is in not shopping around for their health insurance. Many people just get an insurance policy because their parents have it or a friend has it. Shop around for your coverage and you might be surprised how much money you can save because of it.

4. Plan Ahead

Another common mistake people make with health insurance is not planning ahead. When you know you're going to be changing jobs, you most likely will have gaps in your coverage. Many people fail to get temporary coverage while they are looking for a new job. You should also try and take care of any preexisting conditions before you change carriers. These conditions will not be covered under your new plan, so you need to fix them if you can.

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