Do You Need Health Insurance?

If your country doesn’t have a national health service which provides you with free health care, then health insurance is something that you definitely need to have regardless of how young or old you are. Why? Because health insurance is designed to cover your medical expenses, and if you don’t have any coverage, then you might not be able to get the treatment that you require or may even be refused treatment altogether.

Getting insured is especially important if you are on a low income or have a family to support, because if you were ever to become unwell and require medical treatment, then you may not be able to afford that treatment or could even bankrupt yourself paying for it if you do not have an adequate coverage plan.

As a result, insuring yourself against medical expenses is perhaps the best thing that you can do to safeguard your health, your finances and your family.

Of course, this does require you to have a long term time perspective, as being insured is something that you may never benefit from if you are able to stay healthy your entire life.

So it is best to view this type of coverage as something that could protect you against suffering from a significant uninsured loss, rather than viewing it in terms of how much you think you will need it or use it in the future.

Why You Need To Be Insured

Despite the obvious need for health insurance, not everyone chooses to get it. Some people think that they won’t get ill or injured, and if they do, they will somehow be able to take care of themselves without having to visit a doctor or go to the hospital.

This however, is a very risky game to play, because if you ever did contract a serious disease such as cancer, then not having medical coverage could potentially put your life at risk.

For example, without the correct policy you may not be able to see the best physician who specializes in the type of care that you require. You may also be limited as to the types of drugs or treatment options that you receive, thereby reducing your chances of making a successful recovery from your illness.

In fact, many people have died because they didn’t have health insurance or an adequate policy to insure them for an operation they required. So this is not something that you want to risk by hoping that you won’t get sick.

The reality is that most people will get sick at some point in their life, or be involved in an accident. So despite your best efforts to stay healthy, there is quite a strong probability that you will one day require medical attention and this is when being insured is something that you will be very grateful for.

People who do not have a health care plan are also less likely to report any medical problems that they are experiencing, and tend to only seek medical attention when they are in extreme pain or distress. With diseases such as cancer, this delay in seeking treatment could very well cost you your life.

On the other hand, people who are insured tend to be much more forthcoming about any health concerns they may have, and so will promptly visit their doctor for a check-up if they feel the need to.

As a result, such people tend to be healthier overall because if there is anything wrong with them, then they can quickly receive the treatment that they require. And as you probably already know, all medical treatments have the highest success rates the sooner they are started.

Who Needs Health Insurance?

Some of the people who would benefit from having medical coverage include:

• People who live in a country which does not have a national health service that offers free medical care.

• Single parents or couples with children.

• Low income earners.

• Older adults.

• People with prior medical conditions that are likely to require future medical treatment or care.

• People who are self-employed.

• Those in a profession with a high risk of injury or disease.

What Types Of Health Insurance Are There?

If you want to insure yourself against medical expenses, but have not yet taken out a health care plan, you may be wondering what are your options are? Below we will look at some of the most common ways that you can receive this coverage, and how you can do so at the lowest cost.

1) Getting Insured Through Your Employer

If your employer offers you a group plan health insurance policy then you are very fortunate, as even if you do have to contribute something towards it, it will cost you far less than a private coverage plan would.

Should you decide to leave your job, most countries require that your employer continues your health coverage for a certain amount of time after you leave so that you can find a new coverage plan. This will usually apply if you lose your job, go through a divorce or leave because you are pregnant.

If your current employer does not provide you with health insurance, but being insured through your employer is something which is important to you, then you might want to consider looking for another job that can provide you with a basic level of coverage. Having such coverage can be especially useful if you have a family support, as you will usually be able to include them under your own coverage at minimal expense.

One thing that you should remember though when looking for employer health insurance programs, is that most employers will require you to work with them for a year or longer before you can qualify for acceptance into their group policy plan.

To provide you with coverage up until this time, taking out temporary or short term health insurance coverage is usually a good idea, as this will minimize your risk of suffering from uninsured losses should you require medical attention before your group plan starts.

Finally, it is worth remembering that you may be able to reduce the costs of your employer’s health insurance policy by removing unnecessary coverage options. This however, will require the support of many members of staff and a detailed review of your employer’s current policy.

But if enough of you are able to request the removal of unnecessary coverage options, then this can be a very effective way to reduce how much your health insurance costs whilst still maintaining the level of coverage that you need.

2) Private Health Insurance

Not everyone receives health insurance from their employer, and so they must find and pay for a policy by themselves.

This however, can sometimes prove difficult, especially if you are unsure as to what sort of coverage you need and don’t have the time to carefully go over all your options. So unless you are already familiar with health insurance policies, then it is usually best to speak with your insurance agent or advisor and ask for their recommendations.

But as a general rule, any private health care plan that you take out should cover you for a variety of medical expenses. For example, you should receive coverage for fees relating to x-rays, lab tests, diagnostic tests and other routine procedures, coverage should you require hospitalization and coverage for surgical procedures and doctor fees.

Taking out a private health care plan can be quite expensive, although this isn’t always the case. Your first concern should be to get an adequate level of coverage that protects you against major medical expenses and significant risks that you face. You can then save money on your health insurance costs by only insuring yourself against those risks, and avoiding unnecessary forms of coverage.

But just remember not to sacrifice coverage for lower costs, as if that policy does not adequately protect you, then it won’t be of very much use. Likewise, you also need to ensure that you can afford the level of coverage that you do take out. So if your income is limited, it is best to start with a policy that you can comfortably afford and then to gradually expand your coverage once your financial situation improves.

Overall, a private health plan can offer you many advantages and is a great policy to have if you can afford it. With such a policy you will be able to receive treatment in a wider variety of hospitals than you could do with a regular group plan policy, as those tend to only cover your medical expenses at certain “in-network” hospitals. Having this freedom can be very handy if you ever need to see a specialist, as you won’t be limited to where your policy covers you.

Private health insurance can also be very beneficial if your country offers a national health service (NHS), as with private coverage, you will experience shorter waiting times and better quality treatment and care.

Finally, you should be aware that private health insurance policies do tend to have quite steep rate increases. So over time the cost of maintaining that policy can become prohibitively expensive, even if it didn’t cost you much to begin with.

3) Short Term Health Insurance

Short term health insurance is a type of medical coverage that is provided on a temporary basis, such as for a few months up to three years.

This type of coverage can be very useful in helping to close any gaps in an existing policy that you may have. For example, students tend to receive health insurance coverage from their college, however, this usually applies only during term time. As a result, that student is then left uninsured against medical expenses during periods when they are not at college, such as during their summer vacation period.

With a short term health insurance policy however, a college student will be able to minimize their risk of suffering from an uninsured loss by insuring themselves for one or two months during the summer period. Considering that many accidents do tend to happen during the summer months, taking out a temporary policy could prove to be a very wise move.

Short term coverage can also be very beneficial for individuals for are applying for permanent health coverage but have not yet been approved. It can also be very beneficial for those who suddenly find themselves unemployed and without any coverage whilst they are looking for another job.

How To Lower Health Insurance Costs

One of the simplest things that you can do to keep your health insurance costs down, is to go for the largest deductible that you can afford. This is the amount that you will have to pay before your insurer covers the rest of your costs.

For example, a $500 deductible means that you have to pay the first $500 of any medical expenses, and then your insurer will pay the rest. The larger the deductible that you have, the lower your premium costs will be.

If you do choose to do this however, be aware that you are taking on more risk by having a larger deductible. To make this worth doing, your insurance company should offer you some kind of discount for taking on this extra risk. This will usually come in the form of lower premiums.

With a large deductible, you are only likely to make claims on your policy if you have a large expense to cover, such as lab fees or drug fees on top of hospital treatment.

You can therefore expect to be paying out for smaller expenses out of your own pocket, and so you will obviously need to have the money to do this. If you don’t think that you will be able to afford such expenses, then having a high deductible on your policy probably isn’t the best option for you.

But if you generally tend to be in good health and don’t need to see a doctor very often or go to the hospital very often, then taking out a high deductible can be a great way to save money on your health insurance as your out of pocket expenses will be minimal.

On the other hand, if your health is not that good, and you frequently need to see your doctor or go to the hospital, a high deductible is usually not a good option as it will increase your out of pocket expenses.

Co-Payment Ratios

When taking out a health insurance policy, you can opt for a co-payment option which involves you paying a percentage of your medical costs and your insurer paying the rest. But if you do this, make sure that it includes a maximum “out of pocket limit”, so that you know exactly how much you will be required to pay for any given claim.

Most co-payment ratios tend to be set at 20-80. This means that up to a certain limit, as set by your insurance company, you will pay 20% of the costs and your insurer will pay the remaining 80%.

Changing this ratio to 30-70 or even 40-60, will result in lower premiums and therefore a lower overall cost to maintain your policy. But this does come at the expense of greater uninsured risk, so you need to be certain that you can afford to take on such risk and that your insurer is offering you worthwhile discount on your premiums.

Finally, having higher co-payment ratio tends to work out better for people who are in reasonably good health and do not require frequent medical attention. If you have a current health condition, or are experiencing deteriorating levels of health, a higher co-payment ratio is usually not a good idea as it will result in more out of pocket costs.

Conclusion

If your country does not have a national health service then you need to get health insurance, as in the long run, it could save you money and maybe even your life.

If your country does offer a national health service, then getting private medical coverage is usually a good option if you can afford it due to the better quality of treatment and care that you will receive.