Top Health Insurance Mistakes to Avoid in the New Year

When selecting or adjusting health insurance, it’s easy to make mistakes that can impact your coverage and finances throughout the year. Understanding common health insurance pitfalls may help you make confident choices for yourself and your family. The following are some common mistakes to avoid:

Overlooking Open Enrollment Deadlines 

One of the most frequent mistakes is missing the open enrollment period. In California, open enrollment is the main window to sign up for or change your health insurance plan. If you miss this period, you may have to wait until next year unless you qualify for a special enrollment due to a major life event.

Focusing Only on Monthly Premiums 

It’s tempting to choose a plan based solely on the lowest monthly premium. However, lower premiums often come with higher deductibles, copays, or out-of-pocket maximums. Consider your family’s healthcare needs and budget for the year. Your insurance broker can help you compare the total costs of different plans, not just the monthly price.

Ignoring Provider Networks

Another common mistake is failing to check whether your preferred doctors, specialists, or hospitals are in your plan’s network. Out-of-network care can be significantly more expensive or may not be covered at all.

Underestimating Prescription Coverage 

Prescription drug coverage varies widely between plans. Failing to review the formulary (the list of covered medications) can lead to unexpected costs.

Not Updating Personal Information 

Life changes such as marriage, a new job, or the birth of a child can affect your health insurance needs and eligibility. Be sure to update your information and report any changes promptly to avoid gaps in coverage or incorrect premium calculations.

How We Can Help

At Atwood Agency (DBA ISU Insurance Services), we help you compare plans, understand your options, and avoid costly mistakes so that you can start the new year with confidence. Contact us today for a personalized quote or more information.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.