Top 3 Mistakes Americans Make When Picking Health Insurance
You’ve been thinking about it all wrong... because health insurance isn’t insurance at all
Insurance is a safety net that protects you from financial loss in the event of a disaster. Auto insurance protects your finances in case of an accident. Flood insurance protects your finances in case of a flood. Life insurance protects your finances in case you die. In short, insurance is something you buy but hope you’ll never have to use.
Health insurance is the opposite. You’re supposed to use health insurance and use it often. You’re supposed to go for an annual check-up. You’re supposed to take your medicine. You’re supposed to get your vaccinations. You’re supposed to use health insurance to prevent the disaster itself.
Health insurance is more like a coupon book
Think of those coupon books your local elementary school sells as a fundraiser. You pay a fee upfront to access discounts later.
Health insurance policies are just coupon books. If you buy the most basic version, you might get a couple % off at a limited number of stores. If you buy the platinum version, you might now have access to 50% off at a wider variety of stores. Either way, you only gain value from the coupon book if you go shopping. Similarly, you only gain value from health insurance if you see the doctor, fill your prescriptions, etc.
So what’s the problem with health insurance?
A coupon book is only worthwhile if the coupons work at each store. If the discount can’t be redeemed, then you might ask yourself why you bought the coupon book in the first place. Unfortunately, this is how most Americans think about their health insurance.
- 73% of Americans said they had to pay out of their own pocket for care they thought the health plan should have paid for.
- Over 75% say their health plan did not pay for care that their doctor said they needed
- And when they called their health plan, 67% said they had to endure long wait times to be able to speak to a customer service representative for help
Sure sounds like people aren’t very happy with their coupon books.
Why are Americans not happy with their health insurance?
Here are the top 3 mistakes people make when shopping for health insurance:
- Mistake #1: Evaluating by price alone – just because you pay for a coupon book doesn’t guarantee the coupons will work.
- Mistake #2: Not checking the network – make sure the coupons are redeemable with local doctors or else you might be traveling quite a distance to find an in-network doctor.
- Mistake #3: Underestimating the importance of customer service – you will eventually have a question about your claim, bill, or reimbursement. Don’t put yourself in a position where you’re stuck with an insurance provider that dodges your call so they don’t have to cut you a check.
How to make sure you don’t get ripped off buying health insurance
Just like you would read the ratings & reviews of AirBnB hosts and Uber drivers to make sure you’re making a safe decision, you should check out the verified member ratings & reviews of insurance carriers at TwoBeHonest.com.