When you get sick or injured, health insurance is one of the best ways to protect yourself financially. It can help you avoid major medical bills that could devastate your finances and possibly put you in bankruptcy.
Many employers offer health plans as part of their benefits package, and they work with the insurance company to design them. But if you’re not employed, you can buy a plan on your own by going through a state or federal exchange, or directly from an insurance company. Some companies specialize in individual and family plans while others sell group insurance to businesses or nonprofit organizations.
The exact cost of a plan depends on its category—bronze, silver, gold, or platinum—and your age, tobacco status, and family size. You also may qualify for financial assistance, which reduces the costs of premiums and out-of-pocket expenses like copayments and coinsurance.
Choosing the right plan is important because you want to make sure it covers the care you might need in the future. It’s also important to understand what the plan does and doesn’t cover, and how it differs from other health insurance options. For example, some health insurance companies require a referral from your primary care doctor to see a specialist while others don’t. Some have networks of healthcare providers that they prefer you use, and will reimburse them at a lower rate than non-preferred providers.
In addition to covering unexpected medical expenses, health insurance also helps prevent financial hardship from chronic conditions. Some of the most common conditions covered by insurance include heart disease, diabetes, cancer, and asthma. Managing and treating these conditions with medication and other treatments can often prevent the need for expensive, in-patient care.
Health insurance is also a benefit to society in general. It helps decrease the burden on our healthcare system by reducing the amount of uninsured people seeking costly treatment in emergency rooms. It also allows healthier people to work and spend money in the community.
Health insurance is important because it provides peace of mind. Knowing you and your loved ones are protected against the financial consequences of a major illness or injury can free you to pursue other goals in life, like saving for college, marriage, buying a home, or retirement. Regardless of whether you have a preexisting condition, one unfortunate accident or illness can potentially derail your financial future. So don’t take the risk—get health insurance today. It’s cheaper than you think.