by: Kirit Gandhi
Why do we need
to get health insurance? The answer is
very simple. To limit our financial costs
and liabilities.
It is not a
secret that healthcare this country is very expensive. A routine physical exam,
without insurance, can cost you hundreds of dollars. A quick trip to an
emergency room can add up to thousands. Nobody can predict how our health will be
in the future. Accidents happen, children get sick or hurt. With health
insurance, you can limit your costs effectively, which otherwise may end up
being thousands of dollars. According to the Harvard Medical School,
about 50% of the bankruptcies in America are due to lack of proper
health insurance.
Without health
insurance, the risks are many. Medical services you get under emergency will be
charged at full (non negotiated) rates. Moreover, non-payment could result in your
account being turned over to a collection agency, affecting your credit rating,
which in turn can affect your future borrowing ability (e.g. house buying,
business loans etc.). Even state run programs under Medicaid for low asset/low
income people have started using collection agencies to pursue unpaid balances.
For immigrants, there is another consideration, as sponsors (who sponsored your
green card or visitor visa, etc.) are also made sought for the unpaid balances.
For individual
health insurance for you and your family, bigger, reputable companies are
recommended. Beware of unknown companies that offer discount plans. They may advertise
very low premiums, but they likely have limited benefits and a lot of
restrictions. Any experienced insurance agent has heard a number of sob stories
about such plans that have major omissions in coverage that the customer ends
up being personally liable for.
The biggest risk
in health care for the uninsured is the possibility of hospitalization due to an
accident or a chronic illness such as diabetes, or more serious ones such as a
heart attacks or cancer. Once the illness has been diagnosed, it often becomes
difficult to impossible to get good coverage. Most of us can pay the general office
visits to see a doctor (which could range from $50 to $200 and more). But hospital
bills are known to be notoriously high, and can mean financial devastation for
the uninsured.
Considering that
health insurance doesn’t come cheap, it is recommended even if you can’t get
the coverage of your choice, you should elect a policy with a high deductible
amount. A policy with a deductible in the range of $5000 to $10,000 will bring
your premiums down considerably, and at the same time protect you against
potential catastrophic losses from long illness and hospitalization. Remember, you can’t practice fire prevention
once the fire has begun!
There are many
things to consider when purchasing your health insurance, such as maternity
benefits, out-of-network benefits and underwriting criteria’s of different
insurance companies, etc. Some companies have more lenient underwriting than
others. It is advisable to contact an
agent who represents many companies. If you go direct to an insurance company,
they probably won’t tell you to go to their competition for better rates or
benefits; but an insurance broker can take assessment of your needs and
recommend a company and a policy that suits your needs.
Many people have
a misconception that their rates will be lower if the go direct to a health
insurance company. That is not true. The rate you pay when going direct to a
health insurance company is the same as you would get from an agent. Additionally,
you may also be able to establish a relationship with an agent as you would your
doctor, who knows your needs and can make recommendations as things change—which
in the health insurance industry is on an on-going basis.
If we can help you with your health insurance needs for individuals or groups, please do not hesitate to contact. By the way, you can also compare individual health plans our website at www.shalinfinancial.com
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