Individual Health Insurance

Is Being Uninsured Worth the Risk?

A friend of mine, "Mike," is about to change jobs. He has a waiting period of three months before coverage under his new employer's plan begins. That means he has a three-month period in which he'll either pay to extend his benefits under COBRA, buy individual health coverage, or go uninsured.

At first, Mike was inclined to go uninsured, save the money, and "hope and pray" no big medical expenses arise. He doesn't plan on going to the doctor during his hiatus from coverage, and his wife is covered through her job and they have no other dependents to worry about.

He knows I work in the health insurance industry so he asked me for my opinion: "Do I really need insurance before my new group coverage begins? Can't I pay out-of-pocket for any medical expenses that come up?"

"Not so fast!" I warned. Being uninsured can cost a lot more than paying health insurance premiums. Mike may be able to pay for a doctor's visit or prescription out of his savings, but what if he's in a serious accident or develops a serious illness? Without major medical coverage he'd be responsible for paying all of these unexpected - and costly - medical bills on his own.

Mike decided it's not worth the risk. He doesn't want to become a cautionary tale. He's purchasing a short-term individual health plan to fill the gap. It's less expensive than COBRA, and far less expensive than taking on the risk of huge, unexpected medial bills he's not planning for.

If you, like Mike, find yourself between jobs, ask yourself if being uninsured before your new group plan takes effect is a risk you're willing to take. Individual health coverage can provide peace of mind during this time.

Visit Celtic's Individual Health Insurance Learning Resources page to learn more about how individual health insurance can meet your coverage needs.

Health Insurance for Unemployed Individuals

If you're unemployed, health insurance becomes an important matter. If you had a group plan at your old job, you may first consider COBRA coverage, which guarantees health benefits for people who've lost their jobs.

But COBRA rates are expensive because you are now responsible for paying the full amount for your healthcare coverage. Whereas when you were employed, your employer paid a significant portion of the cost of your group plan and you paid a much smaller amount.

So if COBRA is too expensive, there are alternatives. Over the next few blogs we'll take a look at some different individual health plan solutions.

Short-Term insurance is a great product to consider first. It's inexpensive and helps fill a temporary need. You can pay on a month to month basis for your coverage and often qualifying for coverage is a little easier. Since unlike COBRA, with individual health plans you have to qualify/be underwritten to be accepted for a plan.

Short-Term plans often have several different deductibles to choose from. If you take a higher deductible, it will really keep your monthly rate down, while keeping you protected from an unforeseen accident or illness. For healthy people on a tight budget, Short-Term health insurance is ideal. 

You can get coverage starting tomorrow, by learning more today.