You never need it, until you need it!

This week we're chatting about health insurance. It's a topic that's near and dear to our hearts, or something that just doesn’t make sense.

If you haven’t figured it out by now, I have my own business and offer products for Dental, Health, Life and Vision insurance. The things I always hear, when talking about insurance, is that people are confused about the plan they bought or really how health insurance works in general. So... heres some tips.

First things first: What is health insurance? Health insurance is a way to pay for the medical costs that may come up when you're sick or injured. 

Some people have Medicare, if you're over the age of 65 or have a disability, which is paid by the government and covers the costs of hospital visits and doctor visits. Some people have Medicaid, which is paid by the state government and covers some medical care costs for people who meet certain income requirements. 

 However, most people don't get these types of coverage—they buy private health insurance through their employer, buy coverage through independent agents or go through a marketplace like Healthcare.gov (Affordable Care Act Plans). Almost all people get some form of short-term coverage to protect themselves from an unexpected event like a broken arm or illness, though.

Healthcare.gov is where you can go to find out more about government (ACA) plans which can be cheaper than Private depending on a person's income, but not as cheap as Medicare or medicaid. Marketplace gives you the ability to compare prices between different companies to make sure you're getting the best deal! Not everyone qualifies for government assistance with insurance so it is always best to check the FAQ page, just to make sure everything is correct. Another option is to speak with an agent and get a breakdown of your options so you understand what you are choosing.

If a person's income is too high for a subsidy, it is best to search for plans based on age or health. Typically, these are plans available through the Private Market and purchased through insurance brokers and companies. Some private health insurance plans might offer different benefits, such as short-term or catastrophic coverage. Meaning they will still cover your essentials, however the most common things they do not cover is pregnancy, mental health, or hospitalizations for substance abuse. These plans are typically cost efficient for those with a high income and will be similar to employer coverage... without the employer's contribution. Dang!

Short-term plans are another option if you don't meet eligibility requirements for other types of coverage but still want something. They usually have a max out of pocket to make sure that if something major happens while on the policy you won’t have to pay the full bill. One thing to keep in mind though is that some short term options only last 3-6 months depending on your state. There are short term options that last up to three years and have a lifetime maximum. Some insurance plans have high life time maximums and some have a low maximums, but I always tell everyone to double check the policy guidelines. A lifetime maximum is the most an insurance company will pay while you are on the policy.

Just to tell a quick story about the importance of health insurance…

I had a client who was diagnosed with something scary and her hospital bills totaled up to about $500,000 at the end of 2022. She had an insurance plan that had a max out of pocket of $7,000 for the year. For the year of 2022, she only had to pay $7,000 in medical expenses and then the plan covered her at 100%. Insurance is important for securing your finances and health, and without it a person is left to pay whatever amount a hospital sends in the mail.

I tell this story to give everyone an idea of how insurance works in the most major cases.

I can’t tell a person what plan to choose, only give them the information to make the best choice for themselves, family or business. I’m always happy to help answer questions but, until then… 

This is Kortay Powell, Live from the 6