Health Insurance

Health Insurance

One of the most important types of insurance one can hold is health insurance.  While the cost of this insurance is outrageous, it does not change the fact that medical costs themselves are astronomical.  Without insurance, a medical emergency can not only be detrimental to your health, but also to your finances. This insurance must be a priority!  

Which would you rather have happen when you experience a major illness or surgery?  Pay medical insurance premiums and only owe the insurance deductible or have no insurance and end up owing $20,000, $50,000, or even $100,000 because you had no health insurance?

I think you know which route I have chosen for my family.  Everyone in my family is covered. Yes, I know it is expensive but I have experienced first hand the importance of insurance.  Jenn has had two major surgeries and I have had one. Each one cost more than $14,000. Two surgeries occurred within ten months of each other.  If we did not carry medical insurance, it could have destroyed the path we were on to win with our money.

Now, just because you have to have this insurance, it does not mean that you should simply pay whatever rate you are quoted.  Shop around for better deals. Make the decision to at least carry insurance that covers huge expenses, like a high deductible health insurance plan.  While this type of plan will require you to pay a significant amount of any medical expenses before insurance takes over, once you have reached the deductible, the plan will usually pay for the majority (if not all) of your additional health care costs for the remainder of the insurance year.  This is much cheaper than comprehensive care, but you should be okay financially if you have reached Rung #5 on the IWBNIN Ladder and have established a fully funded emergency fund of at least three months of expenses.  

Medical Insurance Tips:

  • Get over being irate at the cost of medical insurance and get covered – even a high deductible plan can seriously limit the costs you would pay in the event of a major medical event
  • Shop around – usually your employer health plan will be better than what you can get on the open market as an individual, but it is still worth shopping around
  • Make sure you clearly understand what the insurance will and will not pay for
  • Have health insurance at all times as you never know when you are going to need it

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“I can promise that if you read and apply what has been written here then you will eliminate financial regret from your life.” – Joe Sangl

 

How To Ruin Your Life Financially – Don’t Carry Health Insurance

I recently wrote about 17 ways to ruin your life financially.   Many of you shared some additional ways too – and they were great!

It is important that we circle back on a few of these because I am passionate about a few of these.   One of them is health insurance.

According to The American Journal of Medicine – more than 50% of all bankruptcies are due to medical bills.   In their report HERE, most of those who filed for bankruptcy were middle-class, well-educated homeowners.

Seriously, with a 100% mortality rate, the chances are pretty high that someone in your family will get ill.   If you do not have health insurance, you are positioning yourself to fail financially instead positioning yourself to prosper!

If you don’t have insurance, GET A QUOTE, find out the cost, and at least get major medical coverage!

Do you have any horror stories of not having health insurance?

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SERIES: Health Insurance – Part Five – The COST Of Not Carrying Insurance

Over the past 21 months, my family has participated in a wild ride with health insurance.   The experience has been enlightening, incredibly frustrating, annoying, confusing and intimidating.   Can I get an Amen! and a witness?!?!   In this series on health insurance, I am going to share my experience AND some helpful tips on saving money on health insurance.

Part Five The COST of not carrying health insurance

This series started out with me sharing my story of dropping maternity insurance coverage only to discover 16 days later that our baby boy was already on the way.   I got the joy of paying about $7,500 extra.

There are several COSTS to not carrying health insurance, some are obvious – others not so much:

  • Monetary penalty This is obvious, of course.   I only had to pay $7,500 extra for my debacle.       I say “only” because I have seen SO MUCH WORSE!   A heart attack costs many multiples of what I had to pay.   Accidents do happen.   My twin brother is an ER doc – and every single day he sees people that are experiencing a life-altering health care crisis.   With a 100% mortality rate, I would say the chances of you or a family member experiencing a large health-care bill in the next ten years is very high.
  • Emotional Stress I meet with people in 1-on-1 financial coaching session all of the time.   One of most common causes of unbelievable stress is unpaid medical bills that were incurred without insurance coverage.   In some cases, the stress has become so great that people begin to lose hope and despair of ever winning with their finances – and it ALL could have been avoided if they had just carried health insurance.
  • Avoid necessary care/Delay visits to doctor When a person does not carry insurance (or do not have money to cover their deductible), they will avoid going to the doctor or emergency room.   Now, in some cases, this is a good thing.   The financial penalty has reduced the number of people going to the doctor for a hangnail.   But in many other cases, people have avoided a doctor’s care for necessary and sometimes urgent care.

What are some other costs you can think of that are a result of NOT carrying health insurance?

Read the entire series

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SERIES: Health Insurance – Part Four – Ways To Save

Over the past 21 months, my family has participated in a wild ride with health insurance.   The experience has been enlightening, incredibly frustrating, annoying, confusing and intimidating.   Can I get an Amen! and a witness?!?!   In this series on health insurance, I am going to share my experience AND some helpful tips on saving money on health insurance.

Part Four Ways to save on health insurance

I need health insurance, but I don’t want to have to take out a small business loan to pay for it!   Here are some key ways that I have saved on my health insurance.

Increase the deductible By increasing the deductible, I have assumed more personal risk and decreased the risk being carried by the insurance provider.   This means that they can offer a much lower premium to me.   In chapter 12 of my book, I Was Broke. Now I’m Not., I share how I compare insurance policies using the premiums and deductibles to see which one is the best financial decision.

Live a healthy lifestyle In a large group health insurance plan, you are automatically admitted to the insurance plan.   In an individual plan, you will be accepted/charged according to your personal health history.   We can’t control all of our health, but by controlling what we can, we can have a healthier life and better rated insurance premiums.

Go to work for an employer with group health insurance coverage If you can not obtain coverage or you have health history that is hurting your ability to obtain affordable insurance, obtain a job that offers group health insurance that does not have a clause that excludes your pre-existing c0nditions.

Don’t work, be a complete slob, and live life on the government dole Be broke.   Don’t be productive.   Save nothing.   Go to the hospital and rack up HUGE charges and let all of us tax-paying, law-abiding, hard-working citizens pay it for you.

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SERIES: Health Insurance – Part Three – Group Plans

Over the past 21 months, my family has participated in a wild ride with health insurance.   The experience has been enlightening, incredibly frustrating, annoying, confusing and intimidating.   Can I get an “Amen!” and a witness?!?!   In this series on health insurance, I am going to share my experience AND some helpful tips on saving money on health insurance.

Part Three Group Plans (even when you are an individual)

Sometimes group plans are less costly and offer better benefits than individual policies – and individuals sometimes have opportunities to participate in a group plan if they are part of a network or business group.   For example, I am part of my local Chamber of Commerce.   They offer the opportunity for me to participate in a group health insurance plan.   Small business networks, home builder groups, and other membership organizations will offer group health insurance to their members.

It gets even better when you can obtain lower premiums by obtaining group health insurance AND it is a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA) – which was Part Two of this series!

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