The Health Insurance Don'ts

Unless you are a insurance magician, steer clear of the tricky health insurance managing in a even trickier downed economy. However, it is also important that you continue to maneuver through these sidetracks and make good choices for everyone you are protecting. These helpful guidelines should help you around some of the biggest mistakes policy holders make to reduce health insurance rates.

Canceling to avoid paying premiums should never be considered. This is mistake number one that amazingly is made by healthy people. They fall prey to the mindset that because they have never used it, it is a dead and burdensome expense. They should instead increase the deductible or out of pocket cost, or even consider switching to a low cost HMO or PPO policy. It is not a wise decision to cancel insurance to try and save money.

Don't just allow your health insurance plan to roll over each year without acknowledging the changes to your policy. Instead, do take the time to find out exactly what will and won't be covered in the coming year and then assess any changes that you may need to make accordingly. When insurance begins paying less you need to pay more and these out of pocket expenses have to come from somewhere and you may need to find ways to create a health savings account to help make up these differences.

Just because something is available, doesn't mean it is the best beneficial thing to do. For example, signing on with COBRA just because you can, might not be too smart. It is usually a panic reaction when someone loses their job. COBRA, even with government help is still a very pricey policy for someone unemployed. Your best options might include rejecting the COBRA den and seek coverage through a spousal plan or a temporary health insurance plan.

Another no-no is covering automatically your spouse and household members under an employer based health care plan. This decision could cost you considerably more than the government's Health Insurance Plan for children, or your spouse health plan option. Usually however, the employer based health insurance is the best decision, but it is always best to examine the pros and cons before you decide what option will give you the biggest bang for your hard earned buck. It's your money and your right to hang on to as much as possible.