Health insurance is one of the most important types of insurance you can have. Heath care costs in the U.S. are ridiculous! Even a simple inpatient procedure can cost you in excess of $10,000. If you don’t have insurance one trip to the hospital could put you under serious financial strain at best and could bankrupt you at worst.
Last year my wife and I had the tremendous blessing of welcoming two perfectly healthy twin boys into the world. Since it was twins her pregnancy was monitored closely, but there were never any serious issues. The birth went off without a hitch, the boys were healthy and didn’t have to go to the NICU. We were only in the hosipital 2 nights.
Total cost for the entire pregnancy and birth? $37,831.70.
Nearly $40 thousand dollars is insane! Without insurance that would have seriously rocked our financial world. Thankfully insurance paid for nearly 90% of everything.
Something like this is just the tip of the iceberg. We have some friends whose little girl had to spend 2 weeks in the NICU after she was born. Their bill was over $100,000.
Serious health issues can cost even more.
I’m not exaggerating when I say that not having health insurance can bankrupt you.
But Health Insurance Is Expensive
I know – insurance is one of the biggest expenses in our budget. But, it has saved us tens of thousands of dollars.
I think it’s possible to include health insurance in almost any budget. I even include it in my recommended budget for college students.
You don’t have to get the most expensive plan out there (obviously). In fact, with a lot of the more expensive plans you may be paying for more than you need.
Many of these plans that run $500 to $1,000 per month or more cover everything from doctor visits to eye exams to prescriptions. It isn’t really necessary to cover these types of expenses that you can afford to pay out of pocket. The biggest reason you need insurance is to cover the events that would destroy you financially. Insurance that only provides coverage for these type of events can actually be pretty reasonable.
High Deductible Health Plan With An HSA
If you do not have insurance coverage now because of the cost, you should consider a high deductible plan coupled with a health savings account at a minimum. It is one of the best low cost health plans you can get. Depending on your age and health you can find a high deductible plan for a little as $200 per month.
The insurance itself is designed to cover catastrophic events while you pay for smaller expenses out of your health savings account (HSA). You can contribute to your HSA on a pre-tax basis and can use the account to pay for qualified medical expenses.
If you don’t have health insurance now, you should at least get a few health insurance quotes. You may be very surprised at how affordable a health insurance can be if you are just looking to cover catastrophic events.
So is health insurance worth it? It absolutely is.
Do you have health insurance now? What kind of plan do you have? What lead to you choose that kind of coverage?