Health Insurance is Boring as %&*$

It’s crazy to think that the health insurance industry is worth over $1 trillion!

Health insurance is one of the many things they don’t teach us in school. With Insurance being as exciting as listening to your high school science teacher talk about the intricacies of what makes up a cell, insurance is still super important. So, let’s start off super basic.

What is health insurance?

Health insurance is any program that helps pay for medical expenses

When was the inception of these programs?

Well, we’d have to go all the way back to working on the railroad days to 1850! Accident insurance, was first offered to laborers that worked on railroads and steamboats, just in case they had an accident. The primary purpose back then was to replace wages, not medical expenses. These policies weren’t introduced until the 1920s.

In today’s world, most of us don’t have to worry about a railroad or steamboat accident that may put us out of work. So, insurance is still supposed to be used, like it was 150 years ago, for catastrophic events.

How do I know what kind of insurance to purchase?

Remember that wealth is health, so living a healthy lifestyle will allow you to have lower cost insurance premiums in comparison to those who don’t. So, in your younger years, it’s advisable to choose insurance policies that fit your lifestyle. More likely than not, you won’t need to utilize your insurance unless you break a bone or need surgery.

These events are unlikely, but they still can happen to you, which is why insurance is necessary. I know this firsthand due to a recent health concern from my doctor.

Never Ever Do This!!!

When I worked at a big faceless financial organization, I saw countless people make this huge mistake. You never need to take money out of your retirement accounts to pay medical bills. These are protected assets and if you have trouble paying, here’s a link to nerdwallet.com to help you out!

https://www.nerdwallet.com/article/finance/pay-medical-debt

 

Important Health Insurance Terms

Deductible is the most you will pay out of pocket when you make a claim.

Co-Insurance, is the amount you would pay after the deductible is met. So if you go to your doctor after you deductible is met and they charge you $10, you pay $2.

Out of pocket maximum, is exactly how it sounds, the most you will pay out of pocket.

Real Life Example of When Insurance Pays Off

Most recently, I’ve had to get some tests done due to unforeseen medical issues. As you can see my insurance is paying off based on the amount of the recent charges. The type of policy that I have is a Florida Blue Select Plan. As you can see, the amount I avoided having to pay is significant due to my insurance coverage!

 

My deductible is $7,000. Which means something super serious would have to happen to me to reach that amount. Anything above and beyond my deductible, is covered in case something catastrophic were to occur.

Overall, the best way to choose the correct insurance is to pick a policy that will cover you in case of a serious emergency. We cannot control everything in our lives, but we can control how much we exercise, what we eat, and the lifestyle we live. Pick a policy that fits your needs and be aware of what you’re doing to your body.

Happy Slacking,

Josh Krafchick, AKA “CHACHI”

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