Many of you commit mistakes while buying health plans. You should avoid such mistakes as otherwise you may not receive the full benefits of buying a health insurance policy. For example, insurance companies may not cover your medical treatment costs in-between jobs if you don’t buy temporary health insurance coverage. Read on to know about such common mistakes and what you should do in order to avoid committing them.

1. Buying less than adequate coverage – It is one of the most common mistakes that people often commit while buying health plans. You should never compromise on coverage so as to reduce the premium cost of your policy. Instead, try out other options to lower the premium cost.

2. Not paying importance to temporary coverage – As already mentioned, many people don’t purchase temporary coverage while changing jobs. However, you should plan properly and fill the gap while changing jobs. By doing this, you can receive coverage if you require medical attention during the in-between time period.

3. Focusing only on insurance premium – Do you think that a lower-premium policy is better than buying a higher-premium policy with lower co-payments? You’re not alone if you think so. However, it is advisable that you choose a relatively higher-premium health insurance policy with lower co-payment option.

4. Not receiving full credit of deductible – Deductible is the amount that you need to pay out-of-pocket before your insurance company pays for the claim. However, it may happen that you don’t get the full credit of your deductible. To avoid this, you should check the rules of deduction while choosing health plans. Always check whether or not your out-of-pocket payments are credited towards your insurance deductible. Remember, you can only get paid for your claim after you pay the deductible amount.

5. Overlooking alternatives to COBRA – Many of you sign up for COBRA (Consolidated Omnibus Budget Reconciliation Act) policy when you’re laid off from a job. By doing so, you can continue receiving the group health insurance coverage offered by your previous employer. But, do you know that you can receive such coverage only for a limited period? Yes, it is true. So, if you are healthy, you should look for alternatives to COBRA when you’re laid off.

You should always shop around before buying an insurance policy and health plans are not an exception. So, never buy a health insurance policy simply because one of your friends has recommended it. Shopping around and weighing policy costs with coverage may help you purchase the required coverage at a relatively low cost along with other suitable terms and conditions.

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A change in the health care plans for seniors

With the new season of Medicare enrollment around the corner, there has been a change in the health care plans, which is yet to open from November 15^th, 2010 to December 31^st, 2011. The window for annual enrollment is foe seniors who want to purchase Medicare D drugs. …. ( Read more )

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