Medical Insurance Blog

Medical Insurance The Top 5 Pitfalls To Avoid!

When attempting to purchase an individual medical insurance policy there are many pitfalls along the way, because of the different things that need to be taken into consideration. If you know what to look for though, you can avoid disappointment and costly mistakes.

 

 

Pitfall #1: Qualifying for Individual Medical Insurance

If you are looking for individual medical insurance for the first time, be sure that you will be able to qualify for it. While there are 5 states that are considered "Guarantee Issue" states, New York, New Jersey, Maine, Massachusetts and Vermont, everywhere else in the country you must meet company guidelines to qualify for coverage. If you have any pre-existing health conditions, this may be a concern to be addressed before you invest too much time into researching individual medical insurance. You may be turned down.

Pitfall #2: Maternity Coverage

Often maternity coverage is not automatically covered by individual medical insurance plans. This policy helps to keep costs down for those who are male or are past childbearing years or simply aren't planning to have children. However, for those who want or need maternity coverage, this omission can be a costly one. If you may get pregnant you will want to look into whether or not the health insurance plan you are about to get has maternity coverage. If not, look at other plans or ask to add maternity coverage as a rider. Riders are additions to standard policies which add normally excluded coverage for an extra premium.

Pitfall #3: Loopholes and Fine Print

Be sure you take the time to research your medical insurance needs, the company you are planning to do business with and the plan itself. Read all the paperwork associated with your new individual medical insurance plan and be sure that you understand it completely. Making assumptions about coverage is a poor choice and may lead to claims denial later.

Pitfall #4: Plans with Limited Benefits

There are some medical insurance plans out there which limit the benefits paid for visits to the ER, hospital stays and other medical costs. Avoid such plans as they can leave you holding the bag with big bills if you have a major illness or injury. In addition, you should be wary of options that are billed as low cost with guaranteed acceptance, as they often come with a long list of limitations.

Pitfall #5: Coverage Gaps

If you are seeking medical insurance, don't let your old policy lapse. Start shopping around in advance so you have no gap in your coverage. Any period of time without health insurance could be grounds for a company to refuse you coverage.

If you are careful to avoid the medical insurance pitfalls mentioned above, you should have no problem finding the right coverage to meet your needs.