Health Insurance Myths: Why You'll Still Pay Out of Pocket

One of the things that I wish everybody understood before choosing their health insurance is the idea that health insurance was never designed to pay every single nickel of every single claim. And there's this sense that if I have health insurance, that I'll never have to pay anything out of pocket when I need healthcare. And the bottom line is, nothing could be further from the truth. Imagine owning a car, right?

I buy a car, I buy insurance for that car in case I get into an accident or something big happens. I may even purchase a warranty that covers me against large expenses, like if my engine blows up or my transmission fails. But we don't buy car insurance to pay for gas, tire rotation, oil changes. I suppose we could, but that insurance for that vehicle would be so astronomically high because when it comes to these smaller things, you either pay a third party to pay those bills for you or you pay them yourself.

So as you enter the health insurance space, you've got to shut off this false belief that just because I have health insurance, it's not gonna cost me anything when I have to get access to care. So understanding how your plan works and what it's designed to do, managing those expectations will help you as you make good decisions for your family. Which risk you want to ensure and which risks you're willing to pay for yourself.