By the PolicyPals team
Published on November 13th, 2020
Recent studies have shown that over 70% of Americans are worried about their health. Yet 78% of them said being unsure of what their health insurance policy really covers, or being confused about buying health insurance.
In fact, over 19% of Gen Z (18 to 23 years old in 2020) and 15% of millennials (24 to 39) aren’t insured at all, mostly because they don’t see the value of health insurance, or don’t know how to buy a health insurance policy.
Understand your coverage
The consequences are heavy, both for Public Health and for policy holders, who don’t work towards building their long-term health and are hesitant to seek medical care when needed.
In fact, 53% of Americans don’t visit their health provider for yearly check-ups, even though all marketplace health insurance plans are required to provide free preventive care for adults and children.
Of these, 60% are men, who have a higher rate of heart diseases and other life-threatening conditions, based on a Harvard’s Men’s Health Watch study.
Additionally, 57% of Americans said they avoided or delayed medical care because they didn’t know whether the expenses would be covered by their insurance.
Overall, older generations are better informed about health insurance and more knowledgeable about their own coverage and benefits. It is certain that a better understanding of their health insurance policies could help Americans plan for a better health management and relieve significant financial stress.
Understand your costs
All health insurance plans describe in details the coverage and benefits, as well as payment structure for both the insurer and policy holder. In a recent study, ValuePenguin found out that 1 in 2 consumers don’t fully understand key aspects of their health insurance policy.
55% don’t understand the concept of health insurance premium
54% are unclear about deductibles
48% are confused about copayments and coinsurance, or don’t know what they are
57% are unsure about what a maximum out-of-pocket is, resulting in 20% of insured Americans unable to afford their out-of-pocket maximum
It is crucial to understand these concepts to make sure you can actually afford your health insurance plan. Your deductible and maximum-out-of-pocket amounts will have a huge impact on the monthly premium. A careful evaluation of past medical expenses and expected medical care needs is required to understand how much coverage you need, and adjust your deductibles and maximum out-of-pockets to find affordable health insurance for you and your family.
Finding the right health insurance plan requires some thinking and planning. If you’re unsure of what health plan fits your requirements, or how much health insurance you need, talking to an agent near you might be the easiest way to get clear answers to your questions.
Sources: HeathCare.gov; United State Census Bureau ; ValuePenguin; Harvard Men’s Health Watch