A Young Adult's Guide to Health Insurance
For a young person starting out on his own in the world, health insurance can be a very tricky subject. Sure, the hospital bills for a broken arm ten years ago were paid for by a parent’s insurance, but who is building tree forts anymore? And for a person who is generally healthy, why shell out a portion of that hard-earned paycheck for something that will probably never be used?
The answer is simple—no one can predict the future. If a serious injury or illness occurs, a person with medical insurance is more likely to receive better medical care than one without, and it will probably be in a much timelier manner. The majority of this care, the cost of which could be quite high, will be paid by the insurance company rather than the full burden falling upon the sick or injured party and his family. Medical expenses are one of the leading causes of bankruptcy for individuals in the United States.
Many companies have plans that cover part of the expense of health insurance, and a new employee should investigate what is available. If no such plan exists, health insurance policies can also be obtained on an individual bases. A high deductible plan, in which expenses are paid out-of-pocket up to some amount before the insurance company takes over, may require minimal or even no month-to-month fees. HSAs, or health savings accounts, can be used in conjunction with this where the money for health care is taken out of a person’s paycheck pre-tax and then used as needed. On the other hand a conventional plan may require month-to-month fees but have minimal out-of-pocket expenses. Regardless of which plan is selected, even a healthy young adult should have at least basic health insurance.