5 Mistakes People Make When Choosing a Health Insurance Plan

Introduction

Choosing a health insurance plan can feel overwhelming—especially today when plan types, networks, provider lists, and costs all vary widely. Many people inadvertently make choices that cost them more in the long run. Below are five of the most common mistakes I see—and how you can avoid them.

1. Focusing Only on Premiums

It’s tempting to simply pick the plan with the lowest monthly premium—but doing so can be misleading. A low premium might hide high deductibles, large copays, narrow provider networks, or limited drug coverage. The real question is: What will your total cost and access to care look like across the year?

Tip: Evaluate premium + deductible + copays + out-of-pocket maximums together.

2. Ignoring Provider Networks

A plan might look strong on paper—until you try to see one of your trusted doctors and discover they’re out-of-network (or excluded altogether). Out-of-network visits often come with significantly higher costs—or may not be covered.

Tip: Before enrolling, check that your preferred doctors, hospital(s), and pharmacies are in the network for that plan.

3. Overlooking Deductibles & Out-of-Pocket Maximums

Some plans lure you in with low premiums, but the trade-off is steep deductibles and large coinsurance. If you end up needing care, the total cost may surprise you.

Tip: Ask yourself: If I have unexpected care, how much will I likely pay out-of-pocket this year? Compare worst-case cost scenarios.

4. Skipping the Prescription Drug Check

If you or a loved one take regular medications, the prescription-drug benefit is critical. A plan might cover medicines—but at high tiered costs, or your pharmacy may not be in-network.

Tip: Review the plan’s formulary (list of covered drugs), check which tier your medications are on, and confirm your local pharmacy is in-network.

5. Treating Your Choice as “One & Done”

Insurance isn’t a “set it and forget it” purchase. Each year offerings, network coverage, benefits, and formularies may change. Many people stick with a plan without re-evaluating—even when their health or needs have changed.

Tip: Mark your renewal/annual-election period in your calendar. Every year, review your plan’s performance for your needs and consider whether a different one might better fit.

Bonus Tip: Work With an Independent Agent

An independent agent (like me) who works with multiple carriers can compare more options and tailor recommendations to your personal health profile. This helps avoid the mistaken default of staying with the same plan “because it’s easy.”

Conclusion

Making the wrong insurance choice isn’t just inconvenient—it can be costly, stressful, and limit your access to care when you need it most. At Gray Owl Health Insurance Agency, I help you avoid these pitfalls. Let’s walk through your options together and identify a plan that meets your needs, protects you from surprises, and gives you confidence in your coverage.