6 Common Health Insurance Mistakes and Misunderstandings


Even though health insurance has been around for decades now, there’s still a lot of confusion and chaos around the subject, since most people find it difficult to grasp some of the concepts around this. 

A reason for this could be that many health insurance companies try to slide in important information through their fine print, so many individuals end up getting into something they’re not completely aware of and later regret it. Because of this, there’s been a growing distrust in health insurance systems across the country, which has started to result in many people choosing to not avail of health insurance, to begin with. 

However, this needn’t be the case – all you need to do is understand the system, how it works, and what you need to specifically look out for in any plan you choose and you should be able to easily identify plans and programs that will work for you and the ones that won’t. 

To make this easier, let’s first eliminate some of the most commonly believed health insurance mistakes and misunderstandings, so you know what exactly you’re getting into the next time round. 

Let’s get started. 

1. Not understanding the policy

One of the most common mistakes that many people make with health insurance is not understanding the policy, to begin with. Many people simply pick a plan without reading the fine print or understanding the details of their coverage. 

This can lead to surprises when they discover what is and is not covered. For instance, many health insurance policies do not cover illnesses that are not listed during the time of application, so if you later try to make a claim for a problem you’ve had for a while now, you will not be able to avail that amount. 

Additionally, it must be noted that most policies do not cover cosmetic work, so even if you need an urgent surgery done (like dental) it will not be covered by your insurance policy. 

An easy way to avoid a rookie mistake like this is to know exactly what you’re getting into before you sign an agreement. Medigapseminars.org is one such place where you’ll be able to find expert information and guidance when choosing any of their Medigap plans, which makes your task easier since you have all the information you need curated in one space in simple language (instead of technical and medical jargon).

Similarly, it’s always good to keep an eye out for policies that offer good and clear information that will make decision-making easier on your part, while also being completely transparent about what they cover and what they don’t, along with any hidden additional fees you may have to pay. 

2. Outdated policies by health insurance companies

Many medical insurance companies make the mistake of not updating the policy regularly. What this means is that they stick to the same policy they created years ago, which can be outdated in the current post-covid scenario. 

People’s health needs change over time, and failing to update the policy to reflect those changes can result in gaps in coverage. 

So always be sure to go through every section of the medical insurance policy and compare it with other policies to be sure that they cover everything that needs to be covered in the current health situation. It also helps to directly ask them when the last time they updated their policy was to get a better understanding of this. 

3. Not using in-network providers to get a better price

Many health insurance plans have a network of providers that offer services at a discounted rate. However, some people don’t take advantage of these providers and end up paying more out-of-pocket for their healthcare. So, always be sure to find out if there’s a better deal offered by an in-network provider before you pay the full amount, no matter what medical insurance plan you choose to go for. 

4. Ignoring preventive care that’s covered by health insurance

A common mistake people make is ignoring or overlooking preventive care. It’s a huge blessing that many insurance plans cover preventive services such as annual check-ups, immunizations, and screenings at no cost to the patient. However, people often skip these services because they feel healthy or think they don’t need them, which can lead to bigger health problems down the line. 

Make sure you never skip a health checkup that’s freely offered to you by your insurance plan since that could end up saving you a lot of money in the future. 

5. Believing that all health insurance policies are the same

One of the most common misunderstandings about medical health insurance is that all policies are the same. In reality, there are many different types of policies with varying levels of coverage, deductibles, and copays. It’s important to understand the details of your policy to make sure you’re getting the coverage you need. 

Even though there may be a basic overlap between most policies about the issues they cover and the ones they don’t, it’s best to assume that there are many differences and go through each policy in detail before making a decision

6. Believing that the cheapest policy is always the best

Some people believe that the cheapest policy is always the best option. However, a policy with a low premium may have a high deductible or limited coverage, which could end up costing more in the long run. 

So, be sure to compare plans for a better price, but avoid going for what’s cheapest at the cost of what’s covered and what’s not.