Breaking Myths Monday: Insurance
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Insurance is a topic with very intricate details and many circumstantial differences. This makes insurance increasingly hard to understand, and thus a lot of myths about health insurance have come to be popular opinion. Today, we’re going to disprove some of these common myths in hopes of helping you understand health insurance a little better. Here are 5 myths about health insurance that you should not believe:
Myth: Your health insurance benefits will kick in the day you purchase them.
A lot of people are unpleasantly shocked when they realize their health insurance does not activate immediately. Most insurance policies have a “waiting period” before coverage kicks in. The waiting period can vary, but for most policies it’s usually around 30 days, so plan accordingly!
Myth: The cheaper the monthly premium, the better the deal!
This is almost always an awful premise on which to choose your health insurance plan. In most cases, the cheaper your monthly premium, the more restricted your plan is. This could mean you have access to fewer doctors, have higher copay and coinsurances, and usually a much higher deductible. If you’re a very healthy individual, you might like having a plan with a low monthly payment and a high deductible because you don’t use your health insurance benefits very often. On the flip side, if you know you’ll have to visit a doctor frequently due to a health issue, you’re most likely better off choosing a plan with a higher monthly payment so your benefits are more flexible and cover more medical services. Overall, you shouldn’t base your decision purely off of the monthly premium. There’s a lot of factors to consider before choosing a health insurance plan!
Myth: If you get a good insurance plan, your insurance will cover all of your medical bills.
In most cases (even with the best insurance plans) this isn’t true. Generally, if your doctor is in-network you will still owe a copay or coinsurance. This means even with insurance plans with great coverage, you will pay some amount to your doctor. However, it is a valid point that good insurance plans will greatly reduce your out-of-pocket costs, but this usually means they have a higher monthly payment as well.
Myth: If you’re young and in good shape, health insurance is a waste of money.
This could not be farther from the truth. Every individual, regardless of their health, should have health insurance. There is no predicting what tomorrow will bring, and if you do not have health insurance, any sort of health issue could seriously impact your financial stability. Additionally, the younger you are (and the healthier you are) the lower your monthly premium tends to be, since you don’t pose as much of a risk to your health insurance company. So since you’re already going to have a lesser monthly payment than most, take advantage of it!
Myth: An insurance plan can have great physical health benefits, but bad mental health benefits.
Thankfully, this is a myth. Ever since the Mental Health Parity and Addiction Equity Act of 2008, health insurance issuers cannot provide mental health or substance use benefits that are less favorable than physical health benefits. This means your physical health benefits and mental health benefits should be equal.
If you have any further questions about insurance you can visit our blog where we cover a variety of insurance related topics, or call the number on the back of your insurance card.