Why Financial Considerations Are the #1 Reason People Switch Health Insurance Plans

Health insurance is one of the most important decisions you’ll make for your family, but let’s face it—cost plays a huge role. Whether it’s the rising premiums or unexpected out-of-pocket expenses, many people find themselves having to reassess their coverage every year. If this sounds like you, don’t worry, you’re not alone. Financial concerns are the #1 reason people switch health insurance plans.

Let’s dive into why this happens and how you can make sure you’re getting the best deal for your money.

1. Premiums Keep Going Up

Every year, health insurance premiums increase—sometimes significantly. What might have felt affordable last year can start to feel like a financial burden. If you’re paying more each month but not seeing better coverage, it may be time to consider switching to a plan with a lower premium.
But here’s the thing: Lower premiums often come with trade-offs, like higher deductibles or fewer benefits. The key is finding a balance that works for your budget without sacrificing the coverage you need. This is where a free policy review can really help—more on that later.

2. Out-of-Pocket Costs Can Be a Shock

Even if your monthly premium feels manageable, high out-of-pocket costs can quickly add up when you actually need care.

• Deductibles: The amount you have to pay before your insurance starts covering services.

• Copays and coinsurance: The share you pay for doctor visits, prescriptions, and other treatments after meeting your deductible.
  A plan with lower monthly premiums might come with higher out-of-pocket costs, so it’s essential to estimate how much healthcare you might need in the year ahead. If you expect regular visits to the doctor or have ongoing prescriptions, a lower-deductible plan might actually save you more in the long run—even if the premium is higher.

3. Life Changes Mean Budget Changes

Sometimes, the need to change health insurance isn’t just about rising costs—it’s about life changes that affect your financial situation.

• Job changes: If you start a new job or lose employer-sponsored insurance, you’ll need to find a new plan that works with your new budget.

• Family changes: Getting married, having children, or even aging children off your plan means your insurance needs and costs will shift.

• Income fluctuations: Pay cuts or unexpected expenses may leave you searching for a more affordable option.

4. Tax Credits and Subsidies Can Help (But Only If You Switch)

If you’re purchasing health insurance through the marketplace, you may be eligible for tax credits or subsidies to help lower your monthly premiums. These subsidies are based on your income, and as your financial situation changes, you might qualify for more savings than you realize. But here’s the catch—sometimes you need to switch plans to take full advantage of these benefits. A quick policy review can help you see if you qualify for lower costs on a new plan.

5. Maximizing Health Savings Accounts (HSAs)

If your current plan qualifies for an HSA—a tax-advantaged savings account for medical expenses—it could offer significant financial benefits. HSAs let you save money tax-free for future healthcare costs, and the funds roll over year to year.
Switching to a high-deductible health plan (HDHP) that qualifies for an HSA can be a great long-term financial strategy. But it’s crucial to weigh the pros and cons of high-deductible plans against your expected healthcare needs.

So, Should You Switch Health Insurance Plans?

If any of these financial concerns sound familiar, it might be time to consider your options. With health insurance, what worked for you last year might not be the best fit for your needs and budget today. Switching plans could save you hundreds—or even thousands—of dollars over the course of a year.

Not sure where to start? We’re here to help.
We offer a free policy review to evaluate your current coverage and see if there’s a better, more affordable option available. Or, if you’re ready to explore your options, you can get an instant quote tailored to your needs.