I will get health insurance from my employer in 9 months. Meanwhile, I should decide whether or not to get my own health insurance.
I’m in my late twenties and do not have any major health issues. I have hearing loss, but that isn’t covered by health insurance anyway. My vision sucks, but I wear contacts, which are also not covered. The only issue is that I still use acne medication, which would cost me about $200 every three months without coverage.
I can survive without checkups for the next 9 months. I haven’t been to the dentist in over a year, but I floss and brush my teeth regularly and do not have a history of dental problems.
The cheapest regular plan on the New York State market place is about $300 per month with a $3000 deductible. It would be pretty worthless since I will avoid spending $3000 on healthcare anyway.
I am thinking the best option is to get catastrophic coverage for $185 per month. Or I can risk it for nine months and get nothing. The penalty would be around $300 and catastrophic coverage would cost me $1,665. I would be saving $1,365 by going without health insurance.
I did that in my 20s between jobs. Got just enough to protect me if I sustained a serious injury or illness, but not enough to hit me hard in the wallet every month. I knew too many horror stories about kids bankrupting their parents after a car wreck, or some such. I slept much better with the safety net for those months. I think it cost me $150 a month, or something.
I’d rather spend $1,665 for something than $300 for nothing. Sure, you might not actually use the insurance, but then again you might, and it’s better than throwing money into a black hole.
I was in a similar situation once and went without, for a year I think. But then when I wanted to sign up for it again they wanted me to make an additional payment equaling 3 years because they felt insuring someone previously uninsured came with additional risks. All of this is probably very different for you, but you may want to check this just in case. (I was lucky because they were about to change the law so a year later I could sign up no questions asked.)
I’d say: if you can spare the money without too much trouble, take out the insurance. But if money is tight, you could risk it.
I know that anecdotes are not data, but let me use my friend Tricia as an example. At the age of 33 she lost her job and opted not to take the COBRA because she couldn’t afford it and didn’t bother looking for cheaper coverage. During the next six months she had several small strokes, ended up in the hospital with massive surgery and had to move out of state back with her parents. It is now almost 4 years later and she still lives in her old bedroom at her parent’s house and has gone back to school. She was healthy and took care of herself but she still ended up racking up hundreds of thousands of dollars in medical bills.
You might not have any issues at all. Or you might have a stroke. Or you might fall down and break your leg. Or you might cut your finger open while cooking dinner one night. If you can afford a cheap $300 a month plan it is worth it, even if you never use it, just to know that if you need to go to the hospital you won’t be bankrupted.
Catastrophic coverage (for $185 per month) has an out-of-pocket maximum of $6,350 (max allowed by the new law). If I do end up in the hospital, the cost would be steep, but I won’t be bankrupt.
Any reason you would suggest regular coverage for $300 per month?
If you do get catastrophic coverage, take the extra $115 and put it in the bank. If you make it without any health problems until your job starts (which you most likely will, being a healthy young adult) you’ll have savings for a rainy-day fund.
I had a 90 gap when I was in my 20s. You didn’t have the option of buying insurance from a state plan then.
Guess who got strep?
And then learned the hard way she’s allergic to penicillin?
The hospital gave be a break on the bill, but it took a big chunk out my paycheck for months to come (hint: more than $300, and this was in 1998).
No, the $300 or $185 or whatever you have access to is fine, just to make sure you are covered for emergency situations. I just used the $300 as an example. Just make certain that you have some type of coverage in place.
I was uninsured all through my 20s, except for one year. Luckily nothing expensive happened in that period. Back then I could get a plan for $80/month.
Statistically, you probably won’t have an emergency or expensive situation in the next 9 months. It could happen (car accident, appendix burst, something like that) but probably won’t. Having said that, I’d get the catastrophic coverage just in case. You are 95%ish likely not to need it, but if you do it is going to suck hard.
Agreed. It’s great that you’re healthy, but you never know what could develop inside you, or what might happen to you when you’re driving, working, etc.
Agree with people here – get a cheap plan, in case something terrible happens. Murphy’s Law and all that. And keep some $ aside to cover you if you get strep or something similar that can be treated at an urgent care center and hopefully handled with cheap meds.
I’d also check to see if you are eligible for any assistance with coverage. I know ***nothing ***about coverage in states other than MA and FL, but if you’re not working, you might get a break.