Recession Proof Living

I’m going to let you in on a little secret. I DESPISE health insurance. Hate it. Loathe it. Ick. It’s really expensive, and too often it doesn’t pay for squat. Customer service is terrible, especially when the insurance company gets into a dispute with the hospital over whether a procedure was medically necessary, or a result of a pre-existing condition, or whether you had been properly referred, pre-approved, and pre-admitted beforehand. Health insurance is evil. However, if you live in America today, it is a necessary evil.

If you don’t have health insurance due to unemployment (or any other reason) you need to get insured. Even if you’re afraid it will be expensive or you won’t be accepted, the simple truth is that you can’t afford NOT to have health insurance. Here are a few reasons you should not delay another minute before you get started.

Reason #1: The Clock is Ticking
If you lost your job recently, you have exactly 62 days under the HIPAA law to find new coverage in order for your pre-existing conditions to be covered. That isn’t much time! You need to get a certificate of creditable coverage from your former employer to prove you were previously insured. It can take up to six weeks to get approved once you apply, so you have very little time to waste. What this means is that you need to start applying for coverage NOW.

Reason #2: COBRA is expensive
If you asked your Human Resources department for the cost of continuing your coverage through COBRA, you likely were shocked. . .and not in a good way. The price includes both the portion you were paying and the portion the employer was paying. There’s no other way to say it, COBRA insurance is expensive stuff. You can almost always save money by buying your own individual coverage. Why? Because you can customize your own plan when you buy an individual policy, and won’t have to pay for things like maternity coverage if there’s no chance of you getting pregnant, or for smoking-related illness if you don’t smoke. If you’re young and relatively healthy, the price will be even lower. Also, you can set your own deductibles and co-pays when you buy medical insurance. If you are willing to take on a higher deductible, your premium will go down.

Reason #3: A Medical Emergency can lead to Bankruptcy
Did you know that medical expenses are the leading cause of bankruptcy in the United States? It isn’t hard to see why. A prolonged hospital stay can easily run $50,000. Without medical insurance, could you afford to pay a bill like that out of pocket? Most people would have to file bankruptcy, and see their credit scores trashed as a result. Don’t let that happen to you.

In short, you need health insurance. It’s not like buying laptop insurance or BlackBerry insurance–your health or even your life could be at stake here. The good news is that the internet can make the process go much more quickly and easily for you. Sites like EHealthinsurance.com and Netquote can compare quotes from all the major insurance companies in just a few minutes. I especially like EHealthinsurance.com because it lets you electronically sign your application, which speeds up the process even more. The sooner you apply, the sooner you can get accepted. Now go do it!