Considering the Individual Insurance Policy
I have never been without health insurance. It has been one of those necessary, expected standards imposed upon me since before I was responsible for my own health care. My parents made it clear that it was as essential as food, and insuring oneself is the primary piece of advice in almost any financial management book. As a result, I’ve sought after jobs with good benefits packages, never paid more than $20 at the doctor, had my teeth cleaned regularly, wear designer eyeglass frames, and paid only $50 for that one ambulance ride. Now, however, I am entering into an existence characteristic of starving artitude, investing most of my time in personal projects, withdrawing my investments from the corporations that have supported/owned me for the past decade. I still work the required minimum twenty hours at my current regular job to maintain health benefits but am beginning to consider plans for insuring myself at a point not so far off into the future.
I’ve done some research, seen the COBRA dollar signs, compared prices for when the COBRA time-frame expires (usually 18 months after a qualifying event: termination, hours reduction, etc.). Insuring oneself through an individual policy is not inexpensive; and where it is less so, the deductibles turn routine checkups into hefty debits. The decision is one weighing self-protection for possible future events against an immediate financial cushion in a not-so-lush period of transition.
Gathering opinions from those I trust has been interesting but not necessarily helpful. To either of my parents it’s a non-issue: insure, that’s the safe and responsible decision. Many of my friends are insured under sub-par policies provided by their employers, pay out of their paychecks toward premiums, have huge deductibles, and not much (knowledge or interest) to offer the conversation. (Most of these are covered under managed care plans, which limit provider choice to participants, sometimes excluding physician options, for example, who might be more sensitive to gender identity or sexuality.) Then there was a mental health professional who told me she didn’t have health insurance, didn’t necessarily think it was essential, and said she trusted that she would be provided for in the event of a medical emergency; and I actually witnessed that to be the case for her. Other friends of mine are uninsured, intentionally, and argue that soaring premiums and healthcare costs, uncapped and unguided by government regulations, are no less a stronghold in the corporate empirical value system than war profiteering.
The opinions are as disjointed as the healthcare system itself. Some even call it broken. In recent and developing legislation, there have been varied reports on the attempts of individual states to initiate universal coverage plans, spearheaded in part by a group of Fortune 500 companies (the Coalition to Advance Healthcare Reform) through efforts to control spiraling costs, make costs and quality information transparent, give incentives for healthy behaviors, ensure equal tax benefits for businesses and individuals alike, and assist low-income individuals. Plans include splitting the cost of such implements between employers, the government, and individuals. It’s encouraging to consider a manageable, affordable system; yet, for now, it’s still largely futuristic.
Welcome to the site! I’m newly insured after an lengthy stint and enjoyed your article. I can relate to your conversations with family members who insist insurance is a necessity!
Here’s a quick tip, if you can turn your current work into true self-employment, 100% of your health insurance premiums will be deductible on your federal tax return!
Again, welcome and I look forward to more fabulous articles.
Allison
Welcome, Aundi! My mother is currently pulling the same thing. I am have recently lost my health insurance (A legal matter I don’t want to deal with) but since I only technically graduated from school recently, there is a cobra from school I am going on. I always trust that I will be taken care of and if I didn’t have a history of so many medical issues, I would not be figuring I need med. insurance at all. When my Cobra runs out, I will be getting the middle ground-a cheap catastrophic policy, since I will have to pay out of pocket for what I will usually use anyway (naturopathic, accupuncture, chiropractic, massage and other woo-woo)!
My civilian job is working for a company that does COBRA billing services for hundreds of companies. COBRA cost depends on many things: the amount of coverage, tbe insurance company, the amount of employer contribution, the separation package (if applicable). For some clients the COBRA cost is low, maybe $150 per month. For others the cost is extremely high- around $800 or more per month. And that’s single coverage.
When I dropped off my parents’ insurance I made a calculated risk based on my health overall and in the previous 12 months. My risk assessment led me to decide to be uninsured for 6 months before taking 2007 benefits. If I leave my civilian job and am not active duty, I’ll need to assess my risks of being uninsured once again.
Welcome Aundi!
Great topic. I too will be evaluating this as I leave my day job (or shall I say it suddenly left me) and move into my business. COBRA for a time? Jump right into self-insured? If so which of the myriad of levels?
Lots to consider and thanks for opening the conversation…looking forward to reading more…