Health Insurance for the Upwardly Mobile

Ministry of Health warning for the upwardly mobile; cover your backside! It is possible to be advancing in economic and social standing one day and to be sinking in medical bills in the next day. With the escalating costs of health care and uncertain global economic times, it is prudent to be insured to the brim. Health insurance is one of the must have insurance policies for the upwardly mobile, and for good reason.

By law, all international students in Australia have to be insured. I was always insured as a student but once I finished studying, I stupidly let my insurance cover run out (for one month). Big mistake! I got involved in an accident during the only month that I have never had insurance in Australia. It was then that I understood that the ambulance sirens can be more expensive than the most luxurious limousines. An ice pack from an ambulance will cost you more than a full body massage in a five star hotel (if you do not have insurance). Suffice it to say that I learnt my lesson.

The purpose of this blog is to inspire you to be the best you can be. In this health series we have looked at ways of staying healthy, through the power of your mind, or through exercise and eating right. But there are times where eating right and lifting weights will not keep you away from ill health. There are moments where even apples won’t keep the doctor away. In those moments, you may need to visit a doctor or be admitted to hospital. Hospitals do not come cheap especially if you are not insured.

I remember taking a friend to one of the big hospitals in Western Australia when I was at uni. The first question that the doctors and their assistants asked was “Do you have private health insurance?” She did not have private health cover and so had to stay on the line for over six hours as the privately insured took the express lane. Have you ever seen that kind of discrimination? It happens every day in hospitals world over. Get on the express lane my friend; get insured.

What is Health Insurance?

Insurance is a means of indemnity against occurrence of an uncertain event. It is the promise of reimbursement in the case of loss; paid to people or companies so concerned about hazards that they have made prepayments to an insurance company. It is a form of risk management used to hedge against the risk of loss.

Health insurance is a form of insurance that pays for medical expenses. It may be sponsored by government or by private insurance companies. You may register for health insurance as part of a group (e.g. same employer) or buy it on your own.

Escalating Cost of Health Care

The cost of health care rises at a higher rate than inflation. Many people struggle to pay medical bills. Many others find it hard to afford the exorbitant premiums charged by insurance companies. Companies are cutting back on the health benefits awarded to employees forcing many to live without insurance.

A recent study by Harvard University researchers found that the average out-of-pocket medical debt for those who filed for bankruptcy was $12,000. Every 30 seconds in the United States someone files for bankruptcy in the aftermath of a serious health problem. (source)

For developing countries, the cost of health care continues to rise faster than the rate of growth of the economies. The gap between the rich and the poor continues to widen especially in the provision of quality health care.

The Risks of Lack of Health Insurance

• Uninsured people are more likely to forego potentially life saving tests such as mammograms.

• Uninsured people are less likely to get preventive services because of the prohibitive costs.

• They are less likely to visit doctors and dentists for routine checkups. Lack of checkups my increase the risks of unnecessary sickness.

• Uninsured patients have worse clinical outcomes than insured patients for several chronic conditions including diabetes, cardiovascular disease, end-stage renal disease, HIV infection and mental illness.

• Uninsured people are more likely to experience financial ruin after serious medical conditions.

• Lost Tax Benefits. People without Private Insurance miss out on government incentives designed to encourage people to get insured. In Australia single people earning over $50,000 per annum and couples/families earning over $100,000 per annum with no private hospital cover pay a further 1% in tax.

Summary

Health Insurance may be expensive but you should make it a priority to invest in the best health cover that you can afford. In the event that you are not covered by your employer’s group insurance, do not try to “save” by avoiding health insurance. The long term cost of being uninsured or under insured may impact heavily on your success.

_{»crosslinked«}

Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.