Many people spend far less time choosing health insurance than weighing options for less costly purchases.
People spend an average of 10 hours researching a new car purchase; five hours planning a vacation; four hours shopping for a new computer and two hours buying a TV, says
USA Today.
But 41 percent of respondents in a recent Aflac survey spent 15 minutes or less researching their health insurance options during the 2013 open enrollment period.
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When open enrollment comes around, most people with health insurance don't seem to give change too much thought. Ninety percent keep the same benefits year after year, Aflac found.
Given the lack of consideration in choosing health insurance, it's unsurprising that most people claim they have trouble understanding their coverage and changes to their policies.
Health insurance is “a significant portion of people's budget, but they don't spend a whole lot of time looking into it,” says Matthew Owenby, vice president of human resources for Aflac.
It's also little wonder that ill-made decisions often come back to bite consumers in the wallet. 42% of the Aflac survey respondents say they waste up to $750 each year on mistakes with their insurance benefits.
About one-third also cite expectations of handing over $1000 or more for out-of-pocket expenses this year.
That's due, in part, to the fact that people mainly focus on the cost of their premiums, which isn't the only cost factor consumers should look at, notes
MarketWatch's Elizabeth O'Brien.
Prescription coverage is one factor many people fail to properly consider. It's common knowledge that all Obamacare health plans must provide prescription coverage. What people don't realize is health insurance companies don't have to cover all drugs and they can place restrictions on drugs they do cover, O'Brien explained.
That means people could find themselves footing a portion or the full costs for medications that they need.
Selecting health insurance isn't a matter to be taken lightly, especially as individuals age. Do the math and make some phone calls. It’s not fun stuff, but some homework is necessary to prevent unpleasant surprises during the year, O'Brien concluded.
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