Biden Administration Executive Order Reopens ACA Enrollment Period: The Biggest Mistake to Avoid When Looking for Coverage

With the Biden Administration Executive Order Reopens ACA Enrollment Period, people without insurance can now get the coverage they need. However, with the special enrollment period, there may be issues and situations that individuals who have never purchased insurance before aren't sure how to handle. Knowing what the biggest mistake is when it comes to purchasing insurance during open enrollment is the best way to avoid serious issues.

According to many experts, one of the biggest mistakes a person can make is trying to purchase plans that seem too good to be true. With the ACA exchanges now open, it is a good idea to learn how to avoid falling into this trap.

Evaluate Great Deals Carefully

If someone finds a good deal online, they need to ensure they are looking at an actual ACA plan. When searching for health insurance online, it is possible to find short-term plans. These usually offer significantly lower monthly premiums, but they don't cover the ten benefits provided by the ACA. These include things like mental health treatment and prenatal care.

State and Federal Marketplace Plans

In some situations, a person may find a great deal on premiums in the state or federal marketplace. However, if there is one plan that seems too good to be true, it is important to read the fine print.

There are some plans that have popped up recently where they offer a $0 deductible. However, once someone scrolls down a bit further, they may see a $1,000 per day for a copay if someone is hospitalized. Most people hope they don't have to spend too much time in the hospital, but if someone does, that cost will add up quickly.

Sorting the Good Plans from the Bad

There are new tools available to help sort out the good and the bad plans. Star ratings, like those that people see on Amazon or Yelp, are available. These star ratings are given based on information from insurers that relate to the cost and enrollee feedback.

Star ratings are provided so someone can learn about an insurance plan at a glance. It lets people see how others feel about the plan. Not all plans have them, though, because they are still new. However, for plans that do have stars, there may be some red flags if there are some issues. Being informed is one of the best ways to help ensure the desired results are achieved.