I have been debating whether to get health insurance thru my employer or putting that money in a savings account. I currently have no insurance, but leaning towards it. Everyone I speak to, however, advise putting it into a savings account, and not paying the insurance companies. Whats your opinion?
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Without Question, reservation or hesitation: Get the Health Insurance.
I don’t know who is advising you to put the money into a savings account, but they are not people who are aware of the cost of uninsured medical care. It doesn’t even need to be catastrophic to be expensive. I got a bad stomach bug once, I went to the clinic…
Total cost without insurance? $897.13.
Total cost with insurance? $10 copay.
Catastrophic illustrations are way more dramatic, though. $5+,000 for a broken limb, $100+,000 for cancer treatments, etc. etc. etc.
If you have a choice in the health insurance the employer is offering you (and most companies have more than one option available), look into a plan that is HSA compatible. That way, you’re paying the insurance company less AND you have an account that rolls over from year to year, accrues interest and may be tax free, depending on your state.
A case of having your Cake and eating it too.
But choice of plan, or not: get the insurance.
Theres something called a health savings account.They’re great as long as you don’t get sick or have any serious health problems.The money that you’d normally pay to a health insurance premium goes into a savings account for future use if needed as opposed to automatically paying your health insurance premium whether you use it or not.You can also pay for some alternative medicine like acupuncture with the money in the account as well as you can write off some of the expenses on your taxes.It’s essentially like prepaying for your medical costs in case you need to but if you’re not sick then the money sits in an account.I would advise that you completely avoid a company called “Medical Savings Insurance” if you decide to go the health savings account route.They lie and cheat those insured under them by refusing to pay hospital bill amounts that they deem overpriced. Humana and Aetna offer better plans of that type.
No amount of savings could pay for a catastrophic illness or accident. Plus, the premium that would be your portion of the group insurance coverage is probably much less than what you would pay for a similar individual policy on your own-no pre-existing to worry over either. If you leave this job, it also gives you the opportunity to extend your coverage with them until you find another group insurance through another employer.
Get the insurance. If you get really sick or injured in an accident, the measley money you earned on interest will not cover your huge expenses.
Unfortunately, without the protection of health insurance, that savings account might not do you any good. I work for eHealthInsurance.com and a lot of our customers are in your shoes when we first meet them. The truth is that a good health insurance plan will protect more than your health, it will help you protect your savings and finances too. Without it a single injury or illness could send you into bankruptcy.
But obviously we all want to save money AND be protected, so I’d repeat some of the advice given by the others already: take a look at Health Savings Accounts (HSAs). “Loves L” has it a little mixed up, though. You don’t pay into an HSA instead of paying monthly premiums. In order to use an HSA, you will need to have an HSA-eligible health insurance plan and you will need to pay your premiums. But you and your employer could make tax-free deposits into your account and you can use that money to pay for copayments, deductibles and a lot of other medical expenses, or to save it for the future. If you’re interested, you can get free health insurance quotes and compare plans at eHealthInsurance.com.
T’yr is right.
Check your options. You may be able to get a high-deductible, or ‘emergency’ plan for very cheap – perhaps cheaper than what your work is offering you, which would allow you to start saving up the difference in an HSA. (Health Savings Account)
Go with your gut on the amount of deductible you need – get an amount that combines affordability with a feeling of security.
Get group health insurance. You’ve speaking to the wrong people.
You need health insurance. Too many doctors won’t be willing to see you without it, which isn’t legal but it happens. A lot. Not because they’re bad but because if you’re really sick they know you won’t be able to afford the tests. Even if that wasn’t the case and you have a doctor who will take you on without it, what happens if you ever have an accident and have to be hospitalized for weeks? Can you pay off $150,000.00 on your own? Trust me, the health insurance is a good investment in the long run. It’s pretty much a necessity.