Health Insurance Myths are everywhere—and they’re costing people time, money, and peace of mind.
From confusing coverage rules to outdated assumptions about pre-existing conditions, it’s easy to make decisions based on misinformation.
In this blog, we’ll discuss the most common health insurance myths and facts, so you can better understand your options, avoid expensive surprises, and make smarter choices for your healthcare—whether you’re shopping for a new plan or just trying to make the most of the one you already have.
Myth #1: Health Insurance covers all medical expenses
This health insurance myth causes a lot of confusion.
Many people assume their plan will pay for everything, but that’s rarely true.
Most plans include deductibles, copayments, and coinsurance—so you’ll still have out-of-pocket costs. On top of that, some treatments or medications might not be covered at all, especially if they’re considered elective or experimental.
Understanding your plan’s limits is key. Network restrictions, pre-approvals, and coverage exclusions can all affect what’s paid for. Taking time to read the fine print can help you avoid surprise bills and make more informed decisions about your care.
Myth #2: You only need health insurance when you’re sick
This health insurance myth overlooks the bigger picture.
Insurance isn’t just there for when you’re sick—it’s also designed to help keep you healthy.
Most plans today include preventive benefits like annual checkups, screenings, wellness programs, and sometimes even fitness or app discounts. Using these perks can help you catch problems early or avoid them altogether.
If you’re not sure what’s included in your plan, call the member services number—they can walk you through the extra benefits you might be missing.
Myth #3: Health insurance from one provider is the same as any other
Not all health insurance plans are created equal.
Even within the same tier—Bronze, Silver, Gold, or Platinum—plans can differ in key ways.
One provider might offer lower deductibles, while another has better network options or extra benefits. Costs like copays, coinsurance, and out-of-pocket limits also vary and can significantly impact what you end up paying.
Don’t assume one plan is just like another. Take time to compare the details—coverage, provider networks, and customer service—to find the best fit for your needs and budget.
Myth #4: Health insurance is too expensive for young, healthy individuals
It’s a common health insurance myth, but being young and healthy doesn’t mean you can’t afford coverage.
Many plans offer low-cost options, especially if you qualify for subsidies or tax credits. Skipping insurance might save money short-term, but one unexpected accident or illness can lead to huge medical bills.
Health insurance also gives you access to preventive care—which helps you stay healthy and avoid bigger costs later on.
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Myth #5: You can’t change health insurance plans once you’ve chosen one
This isn’t true—health insurance isn’t a one-and-done decision.
You can change your health insurance during the annual Open Enrollment Period, which happens once a year. You can also make changes outside of that window if you experience a qualifying life event, like getting married, having a baby, or losing other coverage.
Knowing when and how to update your plan gives you more control over your coverage and costs.
Myth #6: You don’t need health insurance if you’re covered by worker’s compensation
Worker’s comp only covers injuries or illnesses that happen on the job.
It doesn’t pay for regular doctor visits, preventive care, or medical issues unrelated to work.
It also won’t help much with ongoing treatment for chronic conditions. That’s why having separate health insurance is still essential—it gives you full access to care beyond what worker’s compensation provides.
Myth #7: You can’t negotiate medical bills if you have health insurance
You can still negotiate medical bills—even with insurance.
If something looks too high or doesn’t make sense, ask for an itemized bill and review the charges. Sometimes there are errors or unexpected out-of-pocket costs. You can also ask about payment plans or discounts.
Being proactive can lead to real savings, whether you’re insured or not.
Myth #8: Pre-existing conditions are always excluded from health insurance coverage
This used to be true—but not anymore.
Thanks to the Affordable Care Act (ACA), health insurance plans can’t deny coverage or charge more because of pre-existing conditions. Whether you have asthma, diabetes, or a past diagnosis, you’re still entitled to the same essential benefits as anyone else.
This is one of the most important health insurance myths and facts to know: you can’t be excluded or overcharged just because of your medical history.
Myth #9: All medical services and treatments are covered equally by health insurance
Not every service is covered the same way.
Coverage depends on your specific plan, the provider network, and whether the treatment is considered medically necessary.
Some services may need pre-authorization, and certain treatments could have limits or be excluded entirely. Costs like copays, deductibles, and coinsurance also vary depending on the type of care.
Always review your plan details so you know what’s covered—and what you might have to pay out of pocket.
Myth #10: You can’t get health insurance if you’re self-employed or unemployed
This health insurance myth is flat-out wrong—there are plenty of options.
If you’re self-employed, you can buy a plan through the Health Insurance Marketplace or directly from an insurer. Some professional groups even offer access to group plans.
If you’re unemployed, you may qualify for coverage through COBRA, Medicaid, or CHIP (for your kids). Many states also offer expanded Medicaid for low-income individuals.
Bottom line: being between jobs or working for yourself doesn’t mean you have to go without health insurance.
Myth #11: Traditional Health Insurance is the Only Option
Traditional health insurance is just one way to get coverage—but it’s not the only one.
Healthcare Sharing Programs, or Healthshare plans, work differently. Members contribute monthly to a shared fund that helps pay for each other’s medical expenses. These programs often cost less than standard insurance, especially if you don’t qualify for subsidies.
For many individuals and families, Healthshare plans offer a more affordable and flexible alternative to traditional coverage.
Cut Through Health Insurance Myths with Expert Guidance
Still unsure which health insurance path is right for you? You don’t have to figure it out alone.
At HSA for America, we’ve spent years helping people cut through the noise, debunk health insurance myths, and find affordable solutions that actually fit their needs. Whether you’re exploring traditional plans or considering a Healthshare option, we’ll help you understand what works best for your situation.
Schedule a free consultation today by clicking here or visit the HSA for America blog for additional tips on health insurance, healthshare plans, and more.
For Further Reading:
Hi! I’m Mike Montes, and I’m one of your Personal Benefits Managers. I like working with HSA for America because we’re creating solutions to healthcare problems. Our focus on money-saving alternatives like HSA plans and health sharing programs, and the variety of health share programs we offer, are what set us apart. Read more about me on my Bio page.
