Do I Really Need Health Insurance?

The idea of insurance is humorous. It’s most likely the priciest item you own that you hope you never need. You insure your house, vehicle, boat, belongings, and occasionally even your pet without giving it any attention. However, many people believe that self-insurance is either useless or too expensive.

Although nobody anticipates their house burning down or their automobile breaking down, having insurance is essential just in case. Similarly, nobody plans to get sick or hurt, yet everyone will eventually need medical attention—often when they least expect it.

Health care—doctor visits, hospital stays, prescription medications, rehabilitation, medical equipment, and much more—is unaffordable even with health insurance. As per the American Journal of Public Health, the primary reason behind bankruptcy filings in the United States is health care expenses, as nearly two-thirds of cases involve substantial medical debt.

Losing all you own due to lack of health insurance is by no means your only risk.
To begin with, money. What is the price of health care? Most folks don’t know anything at all. It is simple to underestimate the expense of medical care, as the Centers for Medicare and Medicaid Services demonstrates:

• The cost of fixing a fractured limb can reach $7,500.
• The average cost of a three-day hospital stay is $30,000.
• Complete cancer treatment can be expensive

Younger adults sometimes forgo health insurance because they believe they are immune to illness. Naturally, they are gravely misguided. Even though health issues do tend to worsen with age, anyone can break a leg, or require hospitalization following an accident, and cancer has no age restrictions. You would be liable for these expenses if you didn’t have health insurance, just like you would be if a tree fell on your house or your car was stolen.

“We always try to encourage young people to take a second look,” says Linda Greenfeld, L.A. Care Health Plan’s chief product officer. “Life happens.” “Being healthy does not imply that life does not occur; one does not trip and fall, spend time in the emergency room, and leave with bills totaling tens of thousands of dollars.

How Money Is Saved by Insurance

According to CMS, three ways having health insurance might save you from expensive medical bills:

lower expenses following the payment of your deductible. Depending on your coverage, marketplace plans to pay 60% to 90% of your eligible costs after you’ve met your deductible. Coinsurance or copayments, which typically run from $5 to $50 per service, cover the remaining amount.

max out-of-pocket. Regardless of the quantity of insured care you require, there is an annual cap on the total amount you must pay. For instance, if your plan has an annual maximum out-of-pocket of $3,000, the plan will cover all covered care for the remainder of the year after you have paid your $3,000 in deductibles, coinsurance, and copayments.

There are no lifetime or annual restrictions. After you pay your annual deductible, all health plans offered via the ACA marketplace are legally exempt from spending caps on the amount they will pay on these essential benefits for your lifetime. It is important to emphasize that receiving cancer treatment can cost several hundred thousand dollars over several years. It must all be covered by your plan.

It sounds wonderful, but coverage is still pricey, particularly for individuals who have to purchase health insurance independently and do not receive it from their workplace, is I right?

Not always. Contrary to popular belief, ACA plans are far less expensive. Even high incomes, such as a single individual making over $50,000 or a family of four making over $100,000, can take advantage of tax subsidies, which can significantly reduce premium expenses. Greenfield famously exclaims, “I can’t afford it.”

“The Affordable Care Act (ACA) and the exchanges it established are fantastic resources for people to obtain subsidies that significantly lower premium costs.” Medicaid is an option for people who have lost their jobs and money, provided they meet certain requirements, to cover their medical expenses.