Is this family crazy to not buy health insurance?

[Goldy1]

Married couple in thier 30's, generally healthy,

one young child

assets approx are below(they have life insurance for wife and husband)

Savings 60K
Retirement savings 90K invested moderatley
Bonds 10K
Home equity at least 150K (probably more, unsure with the market) and almost paid off
2 older cars paid off

Income is only husband's unemployment checks which just barely pays living expenses (bills). He is a student and likely to enter a job making only 25K ish per year if full time. It is uncertain.

Child is on state plan due to parent's low income. Parents do not qualify for state medicaid b/c assets exceed 2K(oh yea if they spent all of thier assets they would..but not gonna happen)

Insurance would run $200 a month for a 5K deductable (10K deductable for both)plan for both of them, and that might only cover 2 office visits per year also but would cover emergencies and hospitalization.
. Cost is more for better coverage.
They have assess to a county plan that covers primary care check ups and office visits but nothing else(no hospitalization, specialist care)

[Goldy1]

oh and I forgot one important statement:no debt(just tad left on mortgage) no cc or student loan debt etc.

[disneysteve]

Income is only husband's unemployment checks which just barely pays living expenses (bills).

If their only income barely covers their expenses, I don't see how they could start spending an additional $200/month for health insurance. Where would they get the money for the premiums?

[Joan.of.the.Arch]

I think they might not be crazy, but of course they do need to be willing to spend from the $70,000 savings and bonds if there is an ER visit or hospitalization.

[Goldy1]

They would pay from thier savings. It's be $200 a month. If an emergency happened, they'd be paying a lot more(possibly becoming destitute) instead of having thier assets. The point would be to protect the assets. Well with the high deductable, it'd take some of them.

[GrimJack]

Depending on their state, they should look into their states 'basic health' plan. The plans are sliding-scale and are minimum coverage but if their state offers it, they should take it.

[disneysteve]

How exactly did they accumulate savings and equity of over 300K and pay off 2 cars if the husband only expects to earn 25K when he gets back to work?

[Goldy1]

getting laid off after over a decade in a good paying job and wife used to work until a year ago also. (and being frugal living under their means)

[Snodog]

I would do whatever I could even if it means living off credit cards to afford the $200 premuims.

There are cases where I would risk going without health insurance but they have too many assets to protect.

[swanson719]

If it was just the adults, then I say that is their call. An informed decision, no matter how much we disagree, is still their choice. With the child involved, it is 100% irresponsible IMO to not have health insurance at least to cover ER and hospitalization for the child. If they get it on just the kid and not themselves, so be it. The kid needs to be covered.

[disneysteve]

swanson, the child is already covered by the state plan according to the OP.

Personally, I would take the insurance even if it meant spending down savings temporarily until I got a better job. I'd assume the 25K job is just temporary and he will continue seeking a permanent position. I'd also assume that the wife is looking for work, as well. So hopefully, this will just be a short-term issue until they are both employed again.

[maat55]

Realistically they have the funds to pay for their healthcare, up to the amount they have in net worth.

If they choose not to be insured, they have risked their savings. Just because he is out of work does not make them a state burden.

They could choose to insure against massive worth loss with the HDHP. It may mean they will have to sell and move to an cheaper living arrangement.

They should, in no way, be recieiving government aide. They have plenty of options to protect their wealth. Insurance itself is nothing more than wealth protection. If I were them, I would buy the cheap insurance and not look to government for assistance.

[Like2Plan]

They have plenty of options to protect their wealth. Insurance itself is nothing more than wealth protection. If I were them, I would buy the cheap insurance ....

I agree. It sounds like there are plenty of assets to protect.

In evaluating the risk, I would not be comfortable putting all the family savings on the line when the risk could be mitigated by spending $200.00 a month on health insurance.

In this scenario, it sounds like the adults are young and healthy but what about an accident? Even a broken arm can cost plenty--especially if there is surgery invovled.

[disneysteve]

In this scenario, it sounds like the adults are young and healthy but what about an accident? Even a broken arm can cost plenty--especially if there is surgery invovled.

I couldn't agree more. As a physician, and just anecdotally as a human being, I can tell you that anyone who thinks they don't need health insurance because they are "young and healthy" is a fool. I'll be happy to show you the bills from my wife's emergency gallbladder surgery or the ones from her hysterectomy or the ones from when I slipped on the ice a few years ago and messed up my shoulder. I can tell you loads of stories of people who were the picture of health right up until the time that they suddenly weren't. Like the 25 year old woman diagnosed with breast cancer or the 30 year old guy who had a stroke with no known risk factors or the woman who tripped in a parking lot, fell and hit her head on a concrete divider and has been disabled ever since. Going without health insurance when you have the means to pay for it is nuts.

[Goldy1]

Thanks guys! I agree that if you have means to protect your assets and family, you should. It would be an easier decision to go without if one had not worked hard to accumulate some savings etc.
And yes, the situation is temporary(how? who knows?), but with these days not all jobs are f/t or offer benefits and not right away. Besides, many employers expect a hefty contribution as well.
Another pro of having insurance is getting contracted rates.