Alternatives To High Priced Health Insurance
Health insurance is something that we can all agree is really expensive. The average cost of a single person health insurance plan in the United States is $634 per month. That's not including co-pays for doctors visits, which are estimated to be around $65 each and emergency room visits, which can run upwards of $4000. There are some options available to reduce your health care costs, though they have their own risks as well. One option for reducing your costs would be to find a cheaper place to live with less people in it and utilize government programs like Medicare or Medicaid to supplement what you're paying out of pocket with those programs.
Another option is to work for a smaller business that offers coverage, or is willing to pay more in your hourly wage to cover some of your costs and go without insurance. This can lead to problems though as you're now relying on your employer staying solvent enough to follow through with their end of the deal and keep paying you as agreed. What happens if they cut your wage? A third option includes using cash only doctors offices like those that take walk-ins at urgent care clinics. These clinics tend to charge significantly less than a visit with a doctor's office and are great for getting quick relief for illnesses or injuries when you don't have time to schedule an appointment and wait around all day for someone else to get back from lunch.
The last option is to purchase your insurance yourself. This may sound like a good option, but it comes with some risks. For example, if the company you purchased your plan from goes out of business you can be left high and dry if they don't have any contingency plans in place to get all the information they need to properly pay their customers back. Some health insurance companies are only a few months old and haven't been able to get customer information from their old companies before going under themselves.
Comprehensive Health Insurance
This is only one of the many options that there are for reducing your costs for health care, though it's probably the best one. These plans can cost more than a Tom Clancy novel on paper, but they offer the best benefits and you will be covered if you have a large medical bills. These plans are offered by companies like Anthem or Blue Cross in California and most of the other major cities in the United States. Deductibles are usually around $3000 per person to $5000 depending on how old you are. The co-pays for services and prescriptions can be up to $40 each, though supplemental insurance can cover those costs if they arise. There is also a little bit of paperwork involved with applications, though it's only for information they need to verify your identity if you apply at some point in the future (i.e. marriage license, newborn baby registry). The monthly premium is usually around $500/month which is fairly cheap when compared to most of the other options available.
If you have some medical needs that are above and beyond what these plans offer, you can certainly add more coverage to your plan. A lot of these plans have a wide array of add ons that make them very flexible. From prescription drug coverage to physical therapy, you can find this type of coverage just about anywhere. For example, Anthem has a set of samples available on their website where if you go through the process of choosing your options and collecting all the necessary documents needed, they'll give you a "suggested" premium for an offering that covers everything you need. It's a very helpful option for those of us who don't really know what we need or what our medical costs could be in the future. The only down side to these plans is that they are very expensive. Even if you can't save money by finding a cheaper place to live, being able to reduce the cost of insurance will most likely help you keep your spending in check.
The Health Insurance Pool
The health insurance pool is one option where everyone pays their own premiums, but each individual has their own account with money being pooled together into one pot of money from all the contributors each month and used exactly as each person needs it for medical expenses that arise. The cost of this plan is very reasonable and is only based on the contributions each individual makes. The monthly premium depends on many factors, but most of the people who are contributing to this program seem to be paying $60-$80 per month for their insurance coverage.
Another way that some people choose to obtain insurance or pay for their health care is through a hybrid insurance option. This type of plan usually comes with a high monthly premium rate, but also offers unlimited coverage for medical expenses with co-pays and deductibles being taken care of by the employer plus any supplemental benefits needed through a company benefit plan. This type of coverage is more prevalent with corporate jobs and some union jobs, though many people have found ways to make it work with their non-union jobs as well. This plan obviously has the most expensive monthly fee at around $850 for my company.
Costs of Medical Information
The cost of medical information has been on the rise in recent history. When you go to the doctor's office, you'll usually have to pay around $65 for a routine checkup or $300 or more if you need a prescription filled or get a check up from an emergency room. If you're uninsured, getting any kind of treatment can be very difficult and may lead to long term financial problems for your family if your income doesn't cover these costs.
If you're on a high cost insurance plan with prescription drug coverage, the cost of your prescription drugs may be up to $25 for a 30 day supply of more. If you only get one prescription per month, you could save around $100 by using an alternative that allows you to pay for your medications at your local discount store.
When you go to the hospital or doctor's office, there are several costs that are associated with your visit. The co-pay is a large chunk of change when it comes to these visits and can range from $40-$200 depending on how much treatment is needed and what type of insurance you have. Another cost that you have to pay is a portion of your room and board. If you're staying overnight, that can set you back an extra $300 for the room and another $100 for the nurses' services. If you have any follow up visits scheduled after being discharged from the hospital, this could add up to a lot more money if your insurance doesn't cover these charges or if you don't have insurance at all.
A lot of times, when people get sick they call in sick at work because they don't want to spread their germs around the office or they are feeling lethargic and don't want to lose any more money than they would by going in late that day.
Conclusion
No matter how you look at it, you're going to pay a lot of money every year just getting diagnosed with an illness in the United States. If you're unlucky enough to get sick or injured and need constant care, the costs can easily add up over time without health insurance when you need it the most.
If you don't have insurance and are looking for options in your state where you can go without any problems, each state has a section on their website where they tell you what your rights are under COBRA or if there is some other option available to you.