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Why You Should Get Medical Coverage

Almost everyone knows that in the modern United States, individuals and families need medical coverage in order to pay for health care, and to prevent financial hardship.

But why is that, exactly?

This page:

  Lists the medical reasons for having health insurance

  Explains how having (or not having) medical coverage affects your finances

  Touches on the ethical reasons for buying health insurance

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Do You Qualify For A Subsidy?


Find out if you qualify for a government subsidy under Obamacare. Millions of Americans will have their insurance rates reduced under the new health care law. Learn how much you could save with our simple calculator.

The reason for medical insurance

Health care, especially in unforeseeable emergency situations, will often be more expensive than most people will be willing, or even able, to afford on their own. Of course, foregoing hospital and physician care is not a reasonable solution. The wise alternative is already having medical insurance before you need it.

Medical insurance essentially reimburses you for a large portion of your health care costs when they arise, making the care more affordable to you. Some insurance plans will pay their portion of the medical costs directly to the hospital or doctor instead of having you pay and then reimbursing you at a later date. The cost of insurance premiums can seem expensive, however the cost of treating an unforeseen illness or injury is likely be much, much more.

The financial reasons

A disturbing fact of modern life is that about half of the bankruptcies filed by individuals are caused by medical needs, according to a study by the journal Health Affairs.

This means that having health insurance lies at the core of not only your physical well-being, but also of your financial one, as families and individuals who lack coverage can easily find themselves in financial trouble if unforeseen medical bills suddenly appear.

The bottom line: medical insurance offers security and continued health maintenance.

The ethical reason

Why did we put this item after the more pragmatic reasons?

Well, let's face it: most of us today have enough to worry about when dealing with the practicalities of the health care system, we don't really stop and think about any possible ethical reasons there might be for paying for health coverage.

But they exists, and they are important.

Insurance coverage is at its most basics, a method for society to spread the costs of risk.

Sure, it is possible that younger members of society don't need $300 worth of medical coverage every month - maybe they only go see a doctor once a year - but that isn't the point. By paying into the risk-covering pool, they help defray the costs for those who use many thousands of dollars of health services every month. These people often couldn't afford these costs out of pocket, and this is where health insurance steps in, and helps them with these bills.

If you ask yourself "why should I help pay for these bills?". Well, eventually, your medical bills are likely to be higher too, and then you will need that coverage.

Luckily, the recent popularization of Health Savings Accounts, (also known as MSA Plans), it has become possible to save (tax-free) the money spent on health insurance, giving a tax advantage (a deduction) to those who pay for health coverage but have few health expenses. More on these later.


Sidebar
The popularity of Health Savings Accounts has made them far more accessible and available to a wider audience. Visit eHealthInsurance to compare various HSA-eligible plans, and to see how much you could save.


How your medical insurance policy influences your health care

Your medical insurance policy dictates a lot more than simply whether (or not!) you will receive medical treatment and how much health care you'll be able to get when you need it for an injury or illness. Your policy type and carrier also determine:

  Who can provide for your health care,
  Where and when you receive health care,
  The quality of your health care, and
  How much you pay for your health care.

Unfortunately, all of these factors combine to create a complicated situation. Many people don't understand the medical insurance policy they already have, so shopping for a better one is a problem before they even start looking.


Next: How major medical insurance works

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This internet site provides information of a general nature for educational purposes only and is not intended to be legal advice. We make no guarantees as to the validity of the information presented. Your particular facts and circumstances, and changes in the law, must be considered when applying insurance law. You should always consult with a competent insurance professional licensed in your state with respect to your particular situation.