Insurance Myths That Could Cost You Money
Insurance can be confusing. Between premiums, deductibles, copays, networks, benefits and coverage rules, it is easy to make assumptions about how your insurance works.
Unfortunately, some of those assumptions can become expensive.
Whether you are reviewing Medicare, health insurance, life insurance or another type of coverage, understanding what your policy actually provides can help you avoid unexpected costs and make more informed decisions.
Here are five common insurance myths that could cost you money.
Myth #1: “The Cheapest Premium Is Always the Best Plan”
A lower monthly premium can certainly be appealing, but it does not necessarily mean a plan will cost you less overall.
Your premium is only one part of your healthcare expenses. You should also consider:
Deductibles
Doctor visit copays
Specialist copays
Prescription drug costs
Hospital costs
Urgent care and emergency room costs
Maximum out-of-pocket limits, when applicable
Provider and pharmacy networks
For example, one plan may have a very low monthly premium but higher costs when you actually receive medical care. Another plan may have a higher premium but lower costs for the services you use regularly.
The better question isn't simply, “Which plan has the lowest premium?” It is, “Which plan fits my healthcare needs and budget?”
Myth #2: “Medicare Covers Everything”
This is one of the biggest Medicare misconceptions.
Original Medicare does not cover everything. For example, Original Medicare generally does not cover most routine dental care, hearing aids, routine eye exams for prescription glasses or most long-term care. Some Medicare Advantage plans may provide additional benefits that Original Medicare does not, but benefits and costs vary by plan.
There may also be deductibles, coinsurance, copays and other out-of-pocket expenses associated with Medicare coverage.
That is why understanding the different parts of Medicare—and how they work together—is so important.
Do not assume something is covered simply because you have Medicare. Ask questions before receiving services whenever you are uncertain about your coverage.
Myth #3: “I Only Need to Review My Coverage
If Something Goes Wrong”
Waiting until there is a problem can leave you with fewer choices and unexpected expenses.
Insurance plans can change from year to year. Your own circumstances can change, too.
You may have:
Started taking a new medication
Changed doctors
Developed new healthcare needs
Changed pharmacies
Experienced changes in your budget
Started traveling more frequently
Added or lost other insurance coverage
Medicare health and drug plans may also change their costs, benefits, formularies and networks.
That is why an annual insurance review is valuable even when you are perfectly happy with your current coverage.
For Medicare, Open Enrollment takes place each year from October 15 through December 7, when eligible beneficiaries can make certain changes to their Medicare health and drug coverage for the following year.
Think of your insurance review like an annual checkup. You don't have to wait for something to go wrong before making sure everything still works for you.
Myth #4: “If My Plan Worked This Year, It Will
Be the Same Next Year”
Not necessarily.
Insurance coverage can change.
With Medicare health and prescription drug plans, changes may affect things such as:
Monthly premiums
Copays and coinsurance
Deductibles
Prescription drug coverage
Provider networks
Pharmacy networks
Supplemental benefits
Your plan may still be a good fit—but it is worth checking rather than assuming.
Before the new plan year begins, review the information sent by your insurance company and pay attention to notices explaining upcoming changes.
And remember doing an annual review does not mean you have to switch plans. Sometimes the best decision is to stay exactly where you are. The important thing is making that decision after reviewing your options.
Myth #5: “All Insurance Plans Are Basically the Same”
They may look similar at first glance, but the details can be very different.
Two plans may have similar premiums while providing different networks, prescription coverage, deductibles, copays or additional benefits.
That difference matters when you actually need to use your insurance.
Rather than focusing on one feature, consider the complete picture:
What does it cover?
What doesn't it cover?
Are my doctors included?
Are my medications covered?
What could I pay out of pocket?
Are there restrictions or network requirements?
Does this coverage still fit my needs?
The answers to those questions are often more important than the name or advertised price of a plan.
Knowledge Can Help Protect Your Wallet
Insurance decisions should not be based on assumptions.
The cheapest plan is not automatically the best. Medicare does not cover everything. And your insurance deserves attention before—not after—a problem occurs.
Taking a little time to understand your coverage today could help prevent unpleasant financial surprises tomorrow.
Let MRW Solutions Group Help You Understand Your Options
At MRW Solutions Group, we believe insurance should make sense.
Our goal is to help individuals and families understand their coverage, ask the right questions and make informed decisions based on their healthcare needs and financial situation.
Whether you are approaching Medicare eligibility, preparing for your annual Medicare review or simply wondering whether your current insurance still meets your needs, we are here to help.
Don't let an insurance myth make an expensive decision for you. Get informed, review your coverage and know what you have before you need to use it.
Comments