The Importance of Health Insurance
by: Robert Johnson
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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.
Know Your Options
Differences in health insurance really are about who pays (and how much) for health care services, from old-fashioned plans that charge higher fees and pay for most services to modern plans that focus on coverage for more costly instances.
Group insurance is typically offered by employers or trade associations. You and your employer each pay a monthly premium to the insurance company, and the insurance company pays for some or all services when you go to the doctor. Premiums are generally considered affordable by most people because the cost is shared by the employer.
Individual insurance is medical coverage you buy yourself, from the insurance company. You alone pay a monthly premium, and the insurance company pays for some or all health care services.
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.
COBRA stands for Consolidated Omnibus Budget Reconciliation Act of 1985 and is offered, by law, to people who leave a job where there are 20 or more employees with group health insurance coverage. The employer offers continuing coverage to you and your family for 18 months after you leave, but the entire cost of that coverage is yours to pay, often in the form of expensive monthly premiums. For many consumers, this may be the most expensive option, so you may want to shop around and consider private companies that offer more affordable health insurance. However, if you or someone in your family are already being treated for medical condition, COBRA may be your best option to continue ongoing treatment.
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.
Article Source: http://www.ArticleStreet.com/profile/robert-johnson-14123.html
About the Author
Robert Johnson is the President of Consumers for Competitive Choice, Inc. (C4CC). C4CC is a diverse national coalition of Americans who support a strong, vibrant and consumer-focused economy. C4CC publishes Simple Coverage. Simple Coverage offers information and resources about individual health insurance.
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