Are You Buying Too Much Health Insurance?

There Is Such a Thing as Too Much Health Insurance

In a world where health insurance is a vital safety net, it’s not uncommon for individuals to purchase coverage that seems all-encompassing, only to realize they’re paying for services they rarely use. Many health insurance plans cover routine office visits and generic medications, leaving consumers with hefty premiums for coverage they might not fully utilize, essentially leaving you with too much health insurance.

However, there’s a way to regain control over your healthcare expenses while ensuring adequate protection. Just as you would shop around for a big-ticket item like a big-screen TV, taking a proactive stance on your health insurance can lead to substantial savings and a more tailored coverage plan.

Building a Plan That Has Enough, but Not Too Much Health Insurance

Negotiating your healthcare expenses can be empowering. Building a health plan that aligns with your personal needs and preferences allows you to make informed decisions. This ultimately reduces your insurance premiums, and keeps you from buying too much health insurance. To achieve this, consider these seven actionable steps:

1. Research, Research, Research: Just like when you’re shopping for electronics, gather information about different health insurance plans available. Understand the coverage, deductibles, and out-of-pocket expenses associated with each plan.
2. Compare In-Network Providers: Determine which healthcare providers and facilities are included in the insurance plan’s network. Staying in-network can significantly lower your costs.
3. Customize Your Coverage: Tailor your plan to suit your medical history and lifestyle. If you’re relatively healthy, consider opting for higher deductibles and lower premiums. Working with an insurance provider that understands the specific needs of RVers can be instrumental in avoiding too much health insurance.
4. Shop Around for Specialists: If you require specialized care, obtain quotes from various specialists to find the best value without sacrificing quality.
5. Use Telemedicine: Some plans offer telemedicine services, which can be more cost-effective for minor medical issues than in-person visits.
6. Pharmacy Savings: Look into prescription drug costs and explore generic options. Some pharmacies offer discounts or loyalty programs that can lower your medication expenses.
7. Negotiate Pricing: Reach out to healthcare providers and facilities to discuss pricing for services. Inquire about cash discounts or payment plans for non-emergency procedures.

Shop Around to Avoid Getting Too Much Health Insurance

Much like when you’re searching for the best deal on a TV, shopping around and negotiating are key elements in building a health plan that is financially prudent. By making sure you haven’t purchased too much health insurance, you will also end up with a plan that is tailored to your needs. By being an informed consumer, you can reduce insurance premiums and make the most of your health coverage, ensuring you’re prepared for any unexpected medical events while not overspending on routine care. 

There Are Generally Three Types Of Health Insurance

When shopping for health insurance, there are generally three major types to consider. Choosing one that is right for you and your RVing lifestyle isn’t always easy.

1. Affordable Care Act (ACA) Health Insurance

The Affordable Care Act, also known as Obamacare, is a comprehensive healthcare reform law enacted in the United States in 2010. The primary goal of the ACA is to increase access to affordable health insurance for Americans and improve the overall quality of healthcare. ACA health insurance plans must adhere to certain regulations and offer essential health benefits, including preventive services, maternity care, mental health services, and prescription drug coverage. 

On the plus side, you usually don’t have to worry about getting too much health insurance with an ACA plan. On the downside, it may not cover enough, or be flexible enough for RVers that travel away from home. Some key features of ACA health insurance include:

• Guaranteed Issue: Insurance companies cannot deny coverage based on pre-existing conditions, ensuring that everyone can access health insurance regardless of their health status.
• Subsidies and Tax Credits: The ACA provides income-based subsidies and tax credits to help lower-income individuals and families afford insurance premiums.
• Essential Health Benefits: ACA plans must cover essential health benefits, providing a comprehensive level of coverage.
• Minimum Essential Coverage (MEC): The ACA requires individuals to maintain MEC or pay a tax penalty, although this penalty has been reduced to $0 since 2019.

2. Short-Term Health Insurance

Short-term health insurance plans are temporary health coverage options designed to bridge gaps in coverage. These plans are often used by individuals who are between jobs, waiting for employer-sponsored coverage to begin, or need insurance during a life transition. In the case of short-term plans, getting too much health insurance isn’t a huge problem, simply because it is short-term. Key characteristics of short-term health insurance include:

• Limited Duration: Short-term plans typically offer coverage for a few months, up to a year, but usually not longer.
• Lower Premiums: Short-term plans generally have lower premiums than ACA plans because they may not provide the same level of coverage or essential health benefits.
• Fewer Regulations: Unlike ACA plans, short-term health insurance is not required to adhere to all ACA regulations, which means they may exclude coverage for pre-existing conditions and some essential health benefits.
• No Guarantee Issue: Insurers can deny coverage based on an applicant’s health status or medical history, leading to potential coverage gaps for those with pre-existing conditions.

3. Indemnity Health Insurance

Indemnity health insurance, also known as fee-for-service insurance, is a traditional form of health coverage where policyholders have more freedom to choose healthcare providers. These plans give you that ultimate freedom of choice, and allow you opportunity to overbuy and potentially end up with too much health insurance. Fortunately you also have more granularity to control the coverage you desire. Indemnity plans offer:

• Freedom of Choice: Policyholders can visit any healthcare provider, and the insurance company will reimburse a portion of the cost based on the plan’s fee schedule or a percentage of the usual and customary charges.
• No Network Restrictions: Indemnity plans typically do not have provider networks, allowing insured individuals to seek care from any licensed healthcare professional.
• Higher Out-of-Pocket Costs: Indemnity plans often have higher deductibles and coinsurance, leading to more significant out-of-pocket expenses for the insured.
• Less Comprehensive Coverage: Indemnity plans may not cover preventive services or essential health benefits mandated by the ACA, making them less comprehensive compared to ACA plans.

Too Much Health Insurance or Just Right?

It’s important for individuals to carefully consider their healthcare needs and financial circumstances when choosing between ACA health insurance, short-term health insurance, or indemnity health insurance. Each option has its advantages and limitations, and finding the right fit depends on factors such as health status, budget, and coverage preferences.

Knowing how much is too much can be difficult to know. Fortunately you have a strong advocate at RVer Insurance Exchange that can help you avoid getting too much health insurance. They can also make sure you get enough coverage, and that you obtain a policy that works for RVers. Our agents are RV savvy, and expert insurance agents. Contact RVer Insurance today or give us a call at (800) 867-4330. We’d love to use our expertise to help you find a perfect health insurance plan for your active, RV lifestyle.