Having health insurance is one of the best ways to protect your money and your health. Still, a lot of people make mistakes every year that they could have avoided. These mistakes cost them money, time, and sometimes even the ability to get medical care they need. As 2025 approaches, it’s more important than ever to make smart choices about your health insurance. It’s just as important to know what not to do as it is to know what to do when you’re new to a plan, moving companies, or just trying to get the most out of your benefits.
Focusing only on the monthly payment is one of the most common mistakes people make when they buy health insurance. If you’re trying to save money, it’s easy to be pulled to plans that cost the least each month. There are, however, often high deductibles, copays, and out-of-pocket maximums that come with that low rate. If you get sick or need long-term care, this means you could spend a lot more in the long run. It’s important to compare the monthly payment to other costs, like the share and deductible. Choosing a plan based on just one number is not a good idea because it could fail if you need medical help.
Not looking to see if your present doctors and other health care providers are in-network is another mistake that can cost you a lot of money. There are groups of hospitals, experts, and offices that health insurance plans work with. You might have to pay most or all of the cost for care you get from a source outside of that network. A lot of people get shocked when they get a big bill from their doctor because they think their insurance will cover it. Make sure that the doctors and hospitals you want to use are in the plan’s provider network before you sign up.
Also, many people don’t check their prescription drug benefits, which can cause them to spend money they didn’t plan on. Some health insurance plans may charge you more for brand-name or specialty drugs, and some may cover the same medicines. Always look at the plan’s schedule, which is a list of the medicines that are covered, before signing up. If you regularly need medicines, make sure they are covered and learn how much your copay or split will be. If you don’t, you may have to pay a lot of money out of your own pocket for medicines you need for your health.
Policyholders often make the mistake of not knowing or not paying attention to the terms of their policy. Even though insurance terms can be hard to understand, you shouldn’t skip reading the small print. Terms like “out-of-pocket maximum,” “deductible,” and “prior authorization” can have a big effect on your income and your ability to get care. Read the Summary of Benefits and Coverage (SBC) carefully and ask questions if anything is not clear. You can now get help from many insurance companies through live chat and teaching tools to help you understand your plans. Use these resources.
One more common mistake is not using preventive care benefits. Some new health plans, like those that are part of the Affordable Care Act, offer many preventative services for free. Some of these are immunizations, tests, fitness checks, and therapy for things like mental health, food, and smoking. Millions of people miss out on these perks every year, either because they don’t know they’re there or because they think they’ll cost something. Preventive treatments not only save you money, but they also help find health problems early, when they are easier to fix.
During the open registration time, a lot of people also forget to look over and make changes to their health insurance plans. Things in your life may have changed—you may have gotten married, had a baby, gotten sick, or switched jobs. If you don’t look at other plans, sticking with the one you had last year could mean you’re paying too much or not getting enough coverage. Even if you’re happy with your plan, you should still look it over once a year. Make sure you know about any changes to the drug schedule, changes to the provider network, or improvements to the services that are covered.
Another mistake is relying too much on insurance through your job without looking into other choices. Employer plans can be useful and save you money, but they aren’t always the best choice for a person or family. Market or private plans may sometimes have better networks, more coverage, or cheaper costs overall, especially if you are eligible for discounts. Before taking what your boss offers, look at all of your choices. This is especially important if your job is unclear or if you expect your income or family size to change.
Another way to save money is to not take advantage of health savings account (HSA) possibilities. You might be able to get an HSA if you sign up for a high-deductible health plan (HDHP). You can save money before taxes in these accounts to pay for certain medical costs. The money stays the same from year to year and can even grow by investing it. Putting money into an HSA lowers your taxed income, which helps you a lot when it’s tax time. Should you choose not to use this benefit, you could lose money and be less prepared financially for medical crises.
It is also risky not to check for insurance exemptions. Each health insurance plan has its own rules, and some may not cover certain procedures, treatments, or types of care. Different plans might not cover things like pregnancy treatments, alternative medicine, or some mental health services. It’s just as important to know what’s not included as it is to know what is. If not, you might be surprised to find out that your plan doesn’t cover a service you thought was normal.
Another common problem is not keeping the right records or following the claim process. Simple mistakes like missing forms, wrong numbers, or late entries can cause health insurance cases to be rejected. Always keep copies of your medical records, bills, Explanation of Benefits (EOBs), and messages you send to your insurance company. If you need to argue a claim or appeal a rejection, you must have complete proof. It’s easier to do this with many insurers’ apps or web sites, so take the initiative to keep your notes in order.
Lastly, not asking questions is one of the worst things you can do. Too many people think they know what their policy says or that their insurance company is taking care of everything properly. But insurance is hard to understand, and mistakes do happen. Say something if something doesn’t make sense or seems wrong. You can call the customer service line for your company, talk to your HR department, or talk to a registered insurance agent. An ignored question today could become a problem tomorrow that costs a lot of money.
Health insurance doesn’t have to be scary, but you do need to pay close attention to the details. In 2025, don’t make these common mistakes: don’t look at total prices, don’t check networks, and don’t ask questions. This way, you can be sure that your policy will protect you when it means the most. You are in charge of both your health and your finances if you know about your insurance.
