| With the recession upon us, unemployment has | | | | would not be offered for that individual. |
| become a reality and is at an all time high. The media | | | | From my experience, I can tell you that it is much safer |
| and organizations are getting information out to the | | | | to provide your family with more permanent coverage |
| public on how expensive health insurance can be | | | | such as a private health insurance policy. The policy |
| when combined with unemployment income, or the | | | | can never cancel on you due to health and usage of |
| lack of income. It is so true that health care costs are | | | | the policy. It will also never expire on your family. This |
| on a rise, even more so when you elect to take on the | | | | way if you move to a new employer that does not |
| expense of COBRA (Consolidated Omnibus Budget | | | | provide health insurance benefits for your family, or if |
| Reconciliation Act of 1986). Fortunately, there are other | | | | you start your own business, you can still buy more |
| options families have to choose from. Health insurance | | | | catastrophic health insurance (such as a Health |
| is a necessity, like food and shelter. It is not worth the | | | | Savings Account (HSA) Plan) to keep premiums more |
| "cost" of not having health insurance. With COBRA | | | | affordable and have more coverage than an STM. |
| being at the high expense that it is, most people move | | | | The lack of health insurance can cause major |
| to alternative means of healthcare, such as a Short | | | | problems. Far too often the uninsured delay the |
| Term Medical (STM) or their own private health | | | | needed medical attention. As a result, adults can wind |
| insurance plan. | | | | up with conditions that otherwise could have been |
| There is the argument that if you have a pre-existing | | | | prevented. The flip side is if you end up seeking |
| condition you will not be able to get any coverage or | | | | medical attention, many people end up in debt over it. |
| have to settle for lack of coverage. This is true; if you | | | | There are a couple of things you can do to have |
| have one of over 150 conditions out there you can | | | | permanent insurance more affordable for your family. |
| become uninsurable. You will not be able to buy | | | | The first you have to do is ask yourself what is the |
| coverage on your own outside of the high-risk pools. | | | | most important thing for you to insure. This is a very |
| COBRA has its downsides when it comes to | | | | good question to ask. Some people may claim going to |
| pre-existing conditions as well. However, the most | | | | the doctor is the most important thing for them, |
| common conditions are usually covered, as well as | | | | however you cannot buy health insurance to cover |
| many other conditions that could be covered, only if | | | | just doctor visit co-pays. There is a reason for that. |
| you work with the right health insurance agent. A truly | | | | We don't buy health insurance to save $70+/- at the |
| independent agent has the ability to develop | | | | doctor. We would buy insurance for the big expensive |
| relationships with multiple carriers along with the ability | | | | claims. To make it more affordable you may have to |
| to converse with them to see what the probable | | | | go with a high deductible. The good news is you don't |
| outcomes are. Some of my best clients are still | | | | need your deductible in cash at the time of claim. The |
| amazed that I was able to get them coverage, often | | | | facilities are usually reasonable with payment plan |
| times better than what they had before despite the | | | | options to make it more affordable for your family. |
| pre-existing condition. | | | | Having $5k-10K out of pocket if something happened |
| Another option for families who are on a tight budget | | | | to your family is much better than having $100,000.00 |
| is taking on a Short Term Medical (STM). Basically, you | | | | bill hanging over your head for not having insurance. |
| are renting a health insurance policy for catastrophic, | | | | Your employer is in complete control of how they |
| only over a short period of time. The health insurance | | | | distribute your health insurance coverage. This is one |
| companies give you a break on the price because: | | | | of the contributing problems when you become |
| 1) The policies expire at a maximum of 6 months with | | | | unemployed. They can make changes to the policy (i.e. |
| an option to renew. | | | | deferring more cost to the employees), do away with |
| 2) They may only provide a discount for the minor | | | | the health insurance all together or lay you off. |
| things such as, but not limited to: | | | | Unfortunately, you do not have a say so unless you |
| - Doctor Visits | | | | are the owner or on the board of directors. It seems |
| - Lab Work | | | | the problem starts when unemployment hits. In the |
| - Wellness | | | | world of health insurance, many of these problems can |
| - Rx coverage | | | | be prevented if families just took advantage of buying |
| The downsides to having an STM are: | | | | their own private health insurance policy. This way if |
| 1) Like COBRA, the policy eventually runs out. If you | | | | you are employed or not, it is not a reality check. In |
| develop a health condition while on the policy and you | | | | fact, it is already factored into the monthly budget, |
| need to continue treatment, the insurance company | | | | right? You have control of the benefits by choosing |
| may turn down the renewal. | | | | the plan that best fits your needs, your wants and |
| 2) If the condition is on their list of conditions that are | | | | your budget. Work with an independent agent to be |
| uninsurable, even if the treatment is over, a policy | | | | sure you have all the options. |