Let me start by saying if you have an awesome insurance plan
(affordable and great coverage) keep it, because many new plans do not fit
this criteria. Additionally if you have a “pre-existing” condition that
may limit your ability to get insurance in the future or are planning to
get pregnant consider keeping what you have.
The “health” insurance system is funded by healthy individuals paying the
medical bills of sick individuals.
Ask yourself if it worth the investment for you and/or your family. If not
investigate other options. I urge many of my patients to investigate
higher deductible insurance plans along with health savings accounts /
flexible spending accounts.
When to get a high deductible insurance plan:
If you do not use your insurance, i.e. just for an emergency.
If you do not use it enough to warrant the premiums
Why flexible spending account / health savings account:
Pre-taxed
Pay for preventative care true health care, not just sick care
You pay for what you get
Look for a flexible spending account / health savings account that does
not expire at the end of the year. Many companies offer HSA plans;
however, at the end of the year if you haven’t used it you lose the money.
Banks and other companies now offer plans that do not expire, so you keep
the money you don’t spend.
If your current premiums are $300 per month for a $250 deductible and a
$5,000 deductible plan costs $100 per month. You could save $2,400 per
year by switching if you do not use your insurance much. You would be
protected if something major happened, but you would not be throwing away
money if you do not go to the doctor. You could put that $2,400 in a
flexible spending account / health savings account, that does not expire,
and after 2 years you wouldn’t even have to think about coming up with the
$5,000 IF something did happen. After that you could continue to put the
$2,400 in the HSA or you could use that savings for you, like: trips,
extra house payments, get out of debt, investments, etc.
Your numbers will be different, the savings might be more, the savings
might be less, but look to make sure what you have is the best for you
and/or your family.
