health insurance

Save More Money by Not Having Health Insurance

May 5, 2021 By Tamila McDonald Leave a Comment

To put it simply, health insurance is usually expensive. For some households, it costs so much that paying for it is a financial strain. For others, an outright impossibility. To many, it feels like a burden. Particularly if they aren’t getting much use out of the coverage. But does that mean going without healthcare to save money is a smart move? And, if so, how not having health insurance help you save without putting you at undue risk? If you’re interested in trying to save more money by not having health insurance, here’s what you need to know.

The Risk of Being Without Health Insurance

First, it’s important to acknowledge that going without health insurance can be risky. Even if you are healthy, a single accident, serious illness, or major injury can be incredibly costly to cover, particularly if you are trying to handle it out of pocket.

A single emergency room visit (before insurance) can cost between $623 and $3,102 on average, depending on where you live. However, certain kinds of emergencies can run tens of thousands of dollars for a single visit to the ER.

If you have a long-term condition, managing it can come with a significant price tag, too. On average, it costs $16,752 per year to manage diabetes, for example.

However, not everyone will have to go to the emergency room or handle a long-term condition. For those individuals, health insurance is meant to be a form of protection against the unknown, as well as a resource for preventative care, decreasing the odds that a potentially dangerous condition will go unnoticed or untreated.

Saving Money by Not Having Health Insurance

On average, annual premiums come in between $4,024 and $8,540, depending on the location. Factor in that many insured individuals also contend with high deductibles (up to $7,900 for an individual, more for couples or families, using certain Affordable Care Act plans), and many people may wonder whether the expense of health insurance is worthwhile. This is especially true for anyone who is generally healthy, has no history of a long-term condition, or is simply struggling to maintain their budget.

Depending on your situation, you may be able to save money by skipping health insurance while still giving yourself a level of protection. If you are wondering how, here are some options.

Setting Money Aside for Healthcare Costs

One of the simplest ways to forgo health insurance and still be ready to handle medical costs is to save for those expenses. It would be similar to an emergency fund, ensuring you have access to enough cash to handle your needs.

Precisely how much you would want to set aside can vary. At a minimum, it’s smart to be able to cover a typical emergency, so you may be able to use some averages to figure out how much to save. Consider your family health history, but also recognize that an accident or illness can occur outside of those parameters.

Additionally, it’s wise to understand how expensive even a single procedure can be potentially. For example, an aortic valve replacement can cost $135,984, and exploratory chest surgery may run about $137,533, and that’s just for single procedures. A heart attack – including related care and procedures – can run in excess of $150,000.

The benefit of this approach is that you’ll end up paying for services that you legitimately need instead of sending cash to an insurance company for coverage you don’t use. Additionally, the money you set aside could earn interest, allowing it to grow over time. However, you need to make sure that you plan for costs you may ultimately need to shoulder, many of which can be astoundingly large.

Alternatives to Traditional Insurance

In some cases, you may be able to use some alternatives to traditional insurance for some of your healthcare needs.

Two prime examples are low-cost (or even free) community clinics and memberships to local practices. The first option is more common in areas where a notable amount of the population is lower-income, while the other may be more widely available in larger cities.

Community Clinics

With community clinics, there may be a flat fee for doctor’s visits, though services are often limited to preventative care, long-term condition management, and treatment of common illnesses and injuries that wouldn’t require hospital-level services. If you’re near a free clinic, then these visits may not cost anything. However, you may need to meet certain income requirements to qualify for no-cost medical care.

Local Clinics

If you go with a membership to a local clinic, you may get access to free visits, discounted lab work, and lower-cost prescriptions. Again, services are usually limited to what the clinic itself can offer, but it can work for many typical healthcare needs.

Finally, it’s important to remember that many hospitals do have payment plan options for costs related to emergency visits, many of which are interest-free. This can give you some time to pay what’s owed. How much time usually depends on the size of the bill and hospital policies, generally ranging from a few months to several years.

Do you have any tips that can help someone save more by not having health insurance? Share your thoughts in the comments below.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started. Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

5 Benefits to Look For This National Employee Benefits Day

April 2, 2019 By Tamila McDonald Leave a Comment

Today is National Employee Benefits Day — a day to recognize everything professionals do for the workforce and take a closer look at the benefits available ro today’s worker.

In most cases, employees only pay attention to their benefits when they make plan selections or change jobs. But, understanding what is out there is always beneficial. With that in mind, here are five benefits everyone should look for, either in your current job or the next one.

1. Medical and Prescriptions

In most cases, medical and prescription benefits go hand in hand. These plans not only help you control the cost of your healthcare needs, but they can also protect you against financial disaster.

Medical bills are one of the leading reasons for bankruptcy, so having sufficient coverage is a must.

2. Dental Coverage

While these don’t inherently go together, they are usually additional benefits beyond medical and prescription, even if they fall into a similar category.

Although there are ways to get free dental care, it doesn’t usually cover everything. The cost of dental care can be significant without insurance, so many people choose to skip treatments they can’t afford. Dental insurance helps offset these expenses, making your care more affordable. Ultimately, your oral health is important, so finding a job with dental benefits is always a smart move.

3. Vision Benefits

The same goes for vision plans. Whether you currently need corrective eyewear or not, neglecting your vision can have serious consequences. Without insurance, the cost of appointments, glasses, and contacts can add up fast. Plus, numerous conditions can affect the eyes, so you need to keep up with your exams.

Vision insurance makes it easier to stay on top of your overall health, so seek out these benefits when possible.

4. Retirement Plans

Saving for retirement is a must. If your employer offers a retirement plan, then keeping up with this form of savings is a breeze. Usually, you can have the monthly payment taken straight out of your paycheck. And, in some cases, you can get additional funds from an employer match.

Having an employer provide you with a retirement plan can be significantly more convenient than setting up one yourself. Plus, you’ll be much less likely to ignore your retirement savings, ensuring a more stable financial future.

5. Paid Time Off

Everyone has obligations outside of the workplace, and most people experience occasional illness. But, without paid time off, they can be hard to manage. You might struggle to make doctor’s appointments, handle the needs of your children, or simply to recover after getting sick if you can’t get away from work. But, with suitable leave, you can take the time you need without having to sacrifice anything from your paycheck.

What National Employee Benefits Day Is All About

Ultimately, National Employee Benefits Day is a great time to review what you have or what you want from your job. Not every company offers the same benefits, so look closely at their programs to ensure you get everything you need.

Which kinds of employee benefits do you value the most, readers?

Do You Need to Buy Separate Health Insurance for College Students?

August 2, 2018 By Amanda Blankenship Leave a Comment

In many cases, health insurance is less than affordable, making it difficult for individuals to decide whether or not coverage is worth the cost. It isn’t something to be overlooked, especially for students. More than 20 million students are expected to return to college this fall and, without fail, colds and the flu will begin spreading. You don’t want yourself or your child to fall behind because they didn’t have the health care they needed while away at school but do you really need separate health insurance for college students?

Health Insurance Options for College Students

According to HealthCare.gov, each of the options below is available for college students.

Your parent’s insurance: Children are permitted to remain on their parent’s insurance until they are 26 years old.
Student health plans: Many colleges and universities offer a student health plan. In many cases, this is much cheaper than purchasing your own health insurance and gives you the basic coverage you need.
Individual health insurance: You can enroll in your own health insurance program that covers the essentials. Catastrophic health plans are available for individuals under 30. Catastrophic plans cover severe illness or injury and can be more affordable than full health insurance coverage.
Medicaid or Children’s Health Insurance Program: If you apply for individual coverage, you may discover you are eligible for Medicaid or CHIP. If you qualify for one of these government-funded programs, you can begin coverage immediately.

Each of the options above is available to all college students but it may be wise to compare the cost of each side-by-side. You may find that remaining on the family’s health plan may prove to be cheaper than a student health plan or individual coverage.

Do You Need Health Insurance?

You may be able to save the money you planned to spend on insurance altogether. You’ll need to take note of a few things before you decide to do so though.

This year, the health insurance mandate will subject individuals without insurance to a $695 tax penalty per adult and up to $2,085 per family. While the new tax law signed by President Trump removed the mandate, it is not in effect until 2019. So, anyone without health insurance in 2018 will still be required to pay these fees.

However, many students won’t be subjected to the fines at all because most won’t be making enough money to file income taxes ($10,000 a year or less). So, you probably don’t need health insurance for college students to avoid a fine but the decision to go uninsured should not be taken lightly.

Generally, it is a good idea to hold health insurance at all times. This helps ensure you will have the means to pay for a doctor visit, ER visit, or other medical procedure, whether money is tight or not.

Health Insurance Tips for College Students

If you do decide to purchase health insurance for yourself or your child, there are two things to keep in mind if they are traveling to school.

Know where to go (within your network): Once you get settled in into your dorm, find out what local offices accept your insurance. It is a good idea to get the name and number of an eye doctor, dentist, and general practitioner in the area. Then, make a well visit with them and get your insurance on file.
Pick a local pharmacy that accepts your insurance: Once you find a doctor that will accept your insurance plan, you’ll need to find a pharmacy that works with your coverage as well. Most of the time, your doctor’s office can point you in the right direction. You can also call the number on the back of your insurance card for more information.

If you’ve been considering buying a new health insurance plan for your college student (or yourself), consider all of your options and the cost of each. Then make an educated decision based on what is best for your health and finances.

Is Short-Term Medical Insurance Worth It?

July 26, 2018 By Tamila McDonald Leave a Comment

In 2016, 28.1 million Americans were uninsured for the entire year. However, with recent changes to the healthcare mandate, that number may rise, particularly since premiums are largely going up.

The most popular plans available through the Affordable Care Act (ACA), also known as Obamacare, saw premiums soar by an average of 34 percent in 2018. In 2019, Californians can expect their cost to rise by almost 9 percent. In Washington State, insurers are proposing a 19 increase on average. The CareFirst of Maryland’s Blue Preferred offering may raise rates by a stunning 91.4 percent.

Now that Obamacare is changing, many people will begin to explore alternatives, one of them being short-term medical insurance. However, many wonder if short-term health insurance is worth the cost and if it provides enough coverage to be an effective option.

What is Short-Term Health Insurance

Short-term health insurance plans are products that typically come with a much lower cost in comparison to traditional options. For example, according to a report in late 2017, for a 55-year-old male in Indianapolis, the cheapest ACA plan was $563 a month. How much was a short-term health insurance plan? $103 each month.

However, they also come with a big caveat; the coverage typically only lasts for 90 days at a time.

It is important to note that the US Department of Health & Human Service is asking for the removal of the 90-day plan length limit. Ideally, they want coverage to last up to 364 days, just one day shy of a year. But, that isn’t the current state of the limitation, and there’s no guarantee the change will go through.

Further, some insurers allow people to buy up to four 90-day periods at a time. This means completing only one application and going through a single underwriting process. Then, the plans are valid sequentially, providing 360 days of coverage.

While you might be able to secure close to a year of insurance, it usually isn’t the kind of coverage you would be hoping to find. Mainly, this is because these plans don’t meet ACA standards.

Since they don’t meet ACA standards, they insurer can use higher deductibles, lower caps, and additional restrictions on a variety of medical treatments. This makes the monthly cost low, but that doesn’t mean you won’t pay big if you use the coverage.

Is Short-Term Medical Insurance Worth the Cost?

Even with a short-term medical insurance plan, a person could still be left with massive medical bills. Largely, these options don’t provide a substantial amount of coverage and have numerous limitations.

For example, the plan might not include prescription drug or maternity coverage or could charge extra to add these features. Excluding pre-existing conditions (which includes anything you’ve received treatment for or experienced symptoms of in the last five years before securing the plan) is also common.

Some insurers will even limit or deny treatments if a person discovers a severe condition, like cancer, within 30 days of the policy starting.

Additionally, a serious illness after the policy starts may lead the insurer to refuse to renew your plan later. This means, after the 90 days, you may not have any coverage options with them.

Traditionally, short-term health insurance also comes with deductibles that are higher than the maximums set in the ACA. That $103 a month plan mentioned above has a $5,000 deductible. This means you’d have to spend $5,000 in medical costs before the plan even kicks in.

After that $5,000, the plan only covers 50 percent of a person’s medical bills, in the majority of cases, until you spend an additional $5,000 in out of pocket expenses. Plus, there are still other limits and caps to contend with, like a $500 cap on ER visits.

ACA-compliant plans adhere to specific guidelines, including coverage for pre-existing conditions and more favorable out-of-pocket maximums. Plus, they can’t have as many exclusions as a short-term medical insurance plan, making your coverage more comprehensive.

Should You Try a Short-Term Health Insurance Plan?

Ultimately, your unique situation will determine whether a short-term medical plan is right for you. However, it is crucial that you read the fine print to learn about the coverage, exclusions, deductibles, and caveats before you make that decision.

Additionally, it’s important to note that not all states allow short-term plans. People in Massachusetts, New Jersey, New York, Rhode Island, and Vermont can’t purchase these forms of coverage at all. Specific states may also restrict each renewal period further, making them last less than three months.

In the vast majority of cases, short-term health insurance isn’t a cost-effective option. However, some plans are better than others. You may find one with lower deductibles, fewer restrictions, and favorable out-of-pocket limits. Typically, these will cost more than less comprehensive plans, but they can help avoid financial ruin at a much lower price tag.

When in doubt, consult with a state-licensed broker if your state-run exchange has them. These professionals can help you assess your options and determine which one fits your financial situation while respecting your personal healthcare needs.

However, if an ACA plan is available, even if the monthly cost is higher, you could be better off with the insurance. A single medical event can be catastrophic financially, and ACA-compliant plans provide substantially better protection.

Have you ever used short-term medical insurance? Tell us about your experience in the comments below.

Looking for more great insurance articles? Here are a few to get you started:

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3 Things Your Health-Insurance Agent Wonâ€™t Tell You about Open Enrollment

April 16, 2017 By Alexa Mason Leave a Comment

Every business comes across plenty of challenges; however, when it comes to small business, there are endless challenges in the market. Responsibilities in abundance fall on the shoulders of the business owners. The key to the survival of small businesses houses is to set their business priorities efficiently. When employees are happy and satisfied with their jobs, the productivity is boosted automatically. In order to make the employees (being part of an organization) feel safe in the workplace, research says that selecting a health insurance plan providing sufficient coverage should be the topmost priority of the employer.

When it comes to buying a health insurance policy, as a customer, it is fair on your part to expect transparency and clarity from your insurance agent, when you are discussing the coverage and the price. Now, the question is, how can you be sure that your agent is telling you everything?

The following are 3 things that your insurance agent is not letting you know about your policy:

There are other plans too that fit the bill apart from the one he is showing you – The (small) group health plans, individual marketplace etc. provides you with a variety of the choices that insurance agents don’t. The agents don’t have access to all the insurers in the market, as they operate for one insurer.

On the top of that, some agents have an inclination towards specific plans.

Many insurance agents focus on conventional group plans. They are unable to offer subsidies that come complimentary with the other insurance plan. In addition to that, the insurance agents have limited insurance plans offered by a particular insurer. In the end, you miss out on other potential plans.

The services offered can be limited – Do you remember when was the last time you got a follow-up call from your insurance agent asking your compatibility with your current policy? Chances are high that you didn’t. By default, insurance agents practice the principle of “write and run”. They just sell the policy to you and jump to the other customer when they are done with selling a policy to you. They are not alone who follow this approach, as nearly every industry is ruled by this approach.

Ideally, your broker is supposed to be your strategic partner helping you in getting best out the benefits of your insurance policy. To get the maximum benefits, find an insurance agent who is willing to take care of the need of health coverage of your employees and is willing to provide a helping hand for you. You, as an employer, as well as your employees deserve clear, candid, and open communication. Your agents should be available to you when it comes to making important decisions for your business.

You are exposed to high risk of fines – A single wrong decision and you are exposed to fines. For instance, if you offer funds to your employees for the payment of individual health insurance instead of group health insurance, then you could face trouble.

What Can You Do?

The owners of small business houses deserve a communicative, knowledgeable insurance agent. Your agent should be capable of providing you with the guidance that you need for your business. If you think you are getting anything less, then you should go ahead and change your agent or the insurer in certain circumstances.

When you search for a new insurance agent, remember to ask the following important questions that will assist you in analyzing and evaluating whether or not the policy is good enough for your employees.

How long he/she has been selling health insurance policies for?
Which marketplaces and locations he/she specializes in?
What is his/her forte?
What is the periodicity of his/her communication with his/her clients?
When it comes to paperwork compliance in order to stay away from fines, what type of support can you expect from him/her or the company directly?
Does he/she have any other plans apart from the one he/she is currently offering to you?

When you inquire your agent about his/her knowledge and experience in various domains, you get to know what you are missing out on, including what he/she agent is hiding from you. Remember, you as an employer and your employees always deserve better.

Photo: Chris Potter

Consumer Complaints on Private Insurance Not Unusual

August 13, 2016 By James Hendrickson Leave a Comment

July 5. 2016

Top complaints with Colorado health insurance companies include surprise out-of-network billing, out-of-date directories, and denial of claims. (Pixabay)

DENVER – Some consumers are having a rough go with insurance companies in Colorado.

After Tyler Boon’s employer switched health plans, he spent the better part of a week trying to find a new primary care physician for his family, including his pregnant wife.

Nearly every provider he called in Cigna Health Insurance’s directory listed as accepting new patients had not actually accepted a new patient in three years.

Boon says when he told Cigna about the errors, company personnel apologized, but blamed doctors for not providing updated information.

“In an industry that’s based on helping people to have the level of buck-passing and not caring that the directories were that out of date, really was shocking to me,” Boon says.

Boon adds as a financial adviser working from home, he was able to take time to find a family doctor, but he doubts others have that luxury. He also took the time to file a complaint with the Colorado Division of Insurance.

The Colorado Consumer Health Initiative is studying the data compiled by the agency to identify the biggest challenges facing residents and to pressure companies to do better.

The biggest beefs registered include surprise out-of-network billing, inadequate networks and denial of claims.

Boon’s experience is not unusual. A 2015 Consumer Reports National Research Center study found most people with private insurance have complaints but don’t know where to register them.

Boon shares another common gripe: the lack of transparent pricing.

“There’s no other industry on the planet that has that opaque of pricing,” he maintains. “In my job, I couldn’t say to somebody, ‘Invest your money with me and I’ll bill you next year, and I won’t be able to tell you how much you’re going to pay until then.’

“You couldn’t go buy a new car and have them send you a bill four months later.”

Boon has nothing but praise for the hospital workers who helped bring his new daughter into the world three weeks ago, but adds he’s still waiting to get the final bill.

Source: Public News Network, Reprinted With Permission.

Author: Eric Galatas, Public News Service – CO