05/29/2013
The Importance of Health Insurance by Robert Johnson
Chances are, at some point in your life, you or someone you know have landed in the emergency room after an unforeseen accident or illness.
Once inside the ER, the drill begins - paperwork is followed by questions and examinations and tests, even more paperwork and sometimes an overnight stay for observation. And, as painful as the moment may be, an even larger wonder may be, "What will all this cost me?"
Weeks later, when the bills roll in, it becomes painfully obvious that even "simple" ER visits can be costly ventures. Ambulance rides, doctor's visits, radiology fees for X-rays, hospital room charges, lab work - they all add up quickly to thousands of dollars.
Without insurance, you literally can be just one major injury or serious illness away from financial crisis. Health insurance can pay most of your major health care expenses and even some regular or routine costs, depending on the coverage you choose. Unfortunately, we tend to put more emphasis on insuring our cars and homes than we do our health.
Plan, Prevent and Protect Health insurance can help you plan for the unexpected, prevent financial crises and protect your health in the short- and long-term.
It used to be that anyone with a job had health insurance coverage through their employer. That's not the case anymore - one in seven Americans have no health insurance at all. As the economy changes, so do jobs - and with them, health care coverage changes too. Traditional group insurance is no longer the "norm," and more and more people find themselves between jobs and between coverage, looking for answers to confusing questions.
The good news is that you don't have to gamble with your health (or your financial future) by going without health insurance, even if you're just out of school, between jobs, working for yourself, working for a small employer, out of work or getting ready to retire.
There are numerous health insurance options available to individuals, but you do need to understand and evaluate them thoroughly based on your needs and those of your family. That requires time, a little "homework" and maybe even a slight shift in the way you think about individual health insurance.
Health Savings Accounts (also called HSAs) allow you save money to pay current and future medical expenses on a tax-free basis. Think of them as IRAs for medical expenses. They are always paired with high-deductible insurance plans that cover major medical services; HSA money is used to pay for doctor's visits, prescriptions and other health expenses that the insurance plan doesn't cover. Money that you contribute is yours to keep and use for medical expenses - it "rolls over" from year to year if you don't use it all in a single calendar year.
Short-term insurance also is called "temporary insurance" and is designed for transition times in your life. Short-term coverage is only appropriate when you know exactly how long you will need temporary health coverage - if you are unsure how long it will be before you obtain some other type of health insurance, it is best to apply for individual insurance. You buy short-term insurance from an insurance company and pay a monthly premium for health coverage, usually for periods ranging from one to six months.
