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eLearning Series:
Your Most Popular Insurance Questions
Answers For Health and Home
Insurance
( 50 articles
in this series )
Health Insurance:
Worth It or Gamble?
Unlike in Canada and parts of Europe where
the bulk of health care costs are put on a government tab,
most able-bodied, mentally sound Americans under the age of
65 must generally rely on themselves to manage personal health
care funding. For most Americans, that means incorporating
some kind of health insurance into their overall personal financial
strategy.
Over time, however, the costs of health care insurance add
up, and the total spent can be staggering. So should
you have health insurance? Is it worth the gamble? There is no single
answer to these questions, of course, but there are several
items you should consider before making a decision one way
or the other about your health care insurance future.
First of all, about 44
million Americans do not have any health insurance coverage. Many of these people are members of poor
families who do not qualify for Medicaid, employment-based
health insurance and who cannot afford, or who have been refused
for, individual coverage. If you are looking to purchase individual
health care insurance coverage, be aware that the costs tend
to be higher than employer-sponsored plans and the plans less
user-friendly.
With so many types and ranges of personal or individual private
health care insurance available, it can be confusing as to
what kind of health insurance you should buy, and how much
coverage you should have. You may not think you need several
hundred thousand dollars worth of coverage, but consider how
much one hospital visit costs if you need a serious (yet common)
procedure like a heart bypass or even minor surgery to remove
a gall bladder or appendix. Even slight complications can result
in an enormous bill.
If
you receive a health benefits package as part of your employment,
you will be accepted under the company’s plan regardless of
your health status. However, when you apply for individual
coverage, there are no such guarantees and you many not be
able to secure the coverage you need, even with reduced benefits.
The same is true when it comes to renewing your health care
insurance. If you are employed and are covered under your company
plan, you can renew your coverage as necessary, even if you
are sick. With most individual plans, there is no guarantee
your policy will not be cancelled.
Similarly, there
are differences between job-based and individual-based
insurance when it comes to limitations and portability. If
you have had a pre-existing condition when you apply for job-based
medical coverage, there is a limit of about a year to a year
and a half on what can be counted ‘against’ you. With individual
coverage, limitations are prescribed by the state, and vary
greatly state-to-state, but generally, you may not be eligible
for coverage of costs related to a pre-existing medical condition
for the entire duration of your policy.
When it comes to portability, again, depending
on the state in which you reside, it is possible that you
may receive no
credit for past coverage. That means even if you are lucky
enough to qualify for health insurance coverage, you could
end up waiting for the entire pre-existing condition exclusion
period.
Whether
you choose job-based, employer-sponsored health insurance
or a private, individual plan, health care insurance is going
to cost you a lot of money, especially if you have a family
or if you have any ongoing medical issues. The exact amount
depends on your particular situation needs. You may never need
medical attention, and in that case, you might consider the
money spent on health care insurance wasted.
However, most
of us need medical attention at some time or another. Even healthy, positive lifestyle-oriented people have
unexpected health events, car accidents and broken bones. You
can’t anticipate when these events will happen, or how severe
they will be, but without significant financial means or a
decent health care insurance plan, you could end up financially
devastated. Are you willing to make that gamble? To assume
the risk of not being able to pay for medical services or products
that you or a member of your family needs? Money spent on premiums
is certainly a consideration when deciding whether to purchase
health care insurance, but there are other priceless things
to consider before you make a final decision.
Click here to to view health insurance quotes, compare plans side-by-side and apply for the most affordable health insurance within your budget. I did this myself (June 17, 2011) to change my health insurance policy. Saved me $84 per month (or $1,008 per year). It's my SolveYourProblem recommendation.
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by SolveYourProblem.com : 2005
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