Health Insurance: Why It Is So Important and How to Get It
Everyone knows healthcare is expensive and that you can’t get sick or hurt until you have money. Those are two reasons why many millennials delay buying health insurance.
The third reason is that most Americans don’t understand how having no health insurance affects them. A brief survey will show you just how many uninsured young adults there are.
If you are one of them, this article is for you. Keep reading to learn the cost implications and risks of not getting the right kind of health insurance while you are still young and healthy.
Why healthcare is so expensive in America
Health insurance premiums are expensive because they cover many different things. The most obvious cost is the part that covers medical services.
The second-biggest cost is what the insurance company pays in administrative expenses. The third-biggest cost is the part paid in taxes.
As a rough estimate, health insurance costs 10% of the total amount you pay every year. The rest is taxes and the part that goes towards administrative expenses.
This is why it is so important to get the right kind of health insurance. There is also another reason why health insurance is so expensive in America.
In the last two decades, the number of insurance companies has fallen from over 3000 to less than 100. This consolidation in the industry has led to a significant increase in health insurance premiums for consumers. This is particularly true for the
- young
- healthy population.
The cost of being uninsured while young and healthy
When you don’t have health insurance at all, you put yourself at a disadvantage. Let’s say you get into a car accident, sprain your ankle, or get bitten by a dog.
Suddenly, you need medical attention. What happens then? If you have no health insurance, you have to pay for everything out of pocket.
If it is just a doctor’s visit, it might not be so bad. But if you have to go to the emergency room or get any kind of treatment, the costs can be substantial.
If you break your leg and need an MRI, the cost can be as much as $3,000. Without health insurance, you will have to pay every penny of it. And this is just one example.
Without health insurance, your costs can quickly add up. If you get into a car accident, you might suffer some minor injuries.
But you also might have a serious health issues such as
- a concussion
- a broken bone
- a traumatic brain injury.
For example, many people are not aware that whiplash is a soft-tissue injury that can take months or even years to heal properly.
If you don’t have health insurance, you will have to pay for all of your medical expenses. This can be a substantial financial burden. Depending on how serious your injuries are, you might not be able to go back to work and get your regular salary.
What happens when you do not have health insurance
If you don’t have health insurance and get into a car accident, get bitten by a dog, or have another type of health emergency, you will be treated.
But you might not get the kind of treatment that you need. The treating doctor will have to treat you cost-effectively. He or she might not be able to do everything that needs to be done to treat your injury.
For example, if you have a serious bruise on your leg, a doctor might decide to let it heal on its own. However, if you have no health insurance, the doctor might not put a bandage on it. This is because the cost of a bandage is less than the cost of painkillers.
How to get the right kind of health insurance now
If you do not have health insurance, you should get it as soon as possible. There are two types of health insurance plans available to you:
- The first type is an individual health insurance plan. This is a health plan that you purchase on your own.
- A second type is a group health insurance plan. This is a health plan that you get through your employer.
If you want to get an individual health insurance plan, you will have to take steps that are similar to getting a car loan. You will have to get a health insurance quote and then go to an insurance agent to apply.
Once you have been approved, you will have to pay a down payment and sign your health insurance policy. The group health insurance process is different.
You can apply for health insurance through your employer with a simple online form. Once you are approved, the payments will be deducted from your paycheck.
Summing up
Health insurance is really important. We can’t predict when we will need it, but we can predict that it will be necessary at some point in our lives.
Having health insurance can help us get better treatment, avoid financial ruin, and protect ourselves and our loved ones in the event of a serious accident or illness.
Having health insurance allows you to focus on your treatment and getting better instead of stressing about how you will pay your bills. It will also protect you against identity theft and fraudulent charges on your credit card.
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