While many people naturally sigh when asked about their thoughts on health insurance, it’s often an overlooked piece of an individual’s or household’s financial safety net. In fact, it’s estimated that 60-70% of bankruptcies in the United States are due to medical bills. And interestingly, about 60% of those filing for medical bankruptcy have at least some college education (retireguide.com)
Financial benefits of health insurance
So, how does having health insurance help protect you financially? On a basic level, it makes health care more affordable while protecting you from the financial repercussions of unexpected illnesses and accidents that can quickly add up to thousands and thousands of dollars in cost.
While healthy people and young adults often feel they don’t need to waste money on health insurance, accidents and illnesses can happen to any of us at any time. Without health insurance, you’re responsible for paying for all of our medical costs, putting you at risk financially.
For example, a three-day hospital stay can cost more than $30,000 and a cancer diagnosis can lead to thousands of dollars in costs, resulting in financial hardship if you lack health insurance. Having strong health insurance coverage in place at the time something major happens will allow you to focus on getting the best treatment and putting your energy into recovering as quickly as possible. Otherwise, you may feel the added stress of wondering what your medical bills are going to end up costing.
Health benefits of having health insurance
In addition to the financial protection it provides, having health insurance also promotes access to care, resulting in improved health care outcomes and lower death rates. Having access to ongoing medical care can lead to people living longer, healthier lives. For example, many health plans offer preventive services, providing many vaccinations and screenings at no cost, thereby preventing illnesses and associated complications.
Many health insurance plans also cover preexisting conditions. This means that you’ll still qualify for health benefits if you have a diagnosis before you enroll, providing you with peace of mind that you’ll receive coverage right away.
Important things to consider
While having health insurance coverage can provide peace of mind, it’s important to note that some plans may be expensive, not cover your medical costs particularly well, or might limit your coverage to certain doctors and facilities. Other plans may carry high deductibles, have waiting periods for coverage of care related to preexisting conditions, or not cover certain prescription medications. It’s important to look at the details when selecting a health insurance plan.
So how do I know what health insurance coverage is best for me?
Working with a knowledgeable health insurance broker who takes the time to ask you important questions related to your medical care and then researches several different options to provide you with the best coverage for your budget is always recommended. Unlike health insurance agents who are captive to one insurance company, health insurance brokers have the ability to offer health plans from many different insurance carriers, which often results in better choices and coverages for their clients. For example, someone who has several chronic medical conditions and takes many different prescription medications will often need a different type of health plan than someone who is young and healthy.
Would you like to learn more about how having the most customized health insurance might benefit you? Schedule a free consultation to learn more!
Sources:
1. “Medical Bankruptcy: Still Common Despite the Affordable Care Act”. American Journal of Public Health; March 2019.