Health Insurance

Similar to some degree, but not quite. I have to pay up to the deductible limit, and then insurance pays 100%. No co-pays, no percentage.

You are correct on the your second comment. It is a $5000 deductible then 100% coverage by BC/BS. The co-pay thing going on with Obamacare like you mentioned is a joke. Likewise, why would I want to pay and extra whatever on the monthly premium so that I would only have to pay $20 for a doctor's office visit. Especially since I may see a doctor no more than once a year. I would end up paying more in premiums than I would ever get out of the policy.

To me, Health insurance is like car insurance. I got a policy to cover the major stuff, but not the incidentals. Likewise, I don't use auto insurance to get the oil changed or the brakes worked on. Unfortunately, this is why health insurance is so expensive. Everyone wants to use it when they have the sniffles, a tummy ache, or some little boo boo, and expect the insurance to cover everything. When you have a lot of people using it that way, it can be really costly and the premiums have to keep up with that.

With what I have, a typical 21 year old in my state can get the very same policy for a little over $100 a month. There is hardly an employer out there that can even come close to that just for the employee contribution each month. And you lose the insurance when you leave that employer. By having it on your own, it follows you. No playing games with Cobra coverage and other junk.

 

My argument precisely. Insurance is to protect your assets in the event of an unforeseen, unexpected loss.....NOT to cover the day-to-day ordinary expenses.

When I shopped around, the plan like yours would have been $50/month for me...and the one I bought was $65/month. Even though I have yet to incur ANY medical expenses....I haven't even paid out one red cent in medical bills, let alone file a claim to ask THEM to....my insurance is still up to $100/month these days (and yeah, it irks me quite a bit each time it goes up, being what it is and all it shouldn't cost that much.)

I almost bought the $5000 deductible plan, but just starting out as an O/O, I felt $1750 deductible/$4750 max out-of-pocket would be easier to come up with if something major happened.

Hopefully the SCOTUS will see Obamacare for what it is and throw the whole #### thing out....guess we'll find out later this year.

 

Yep, HSA's are still legal. I sell a few here and there. Obama trashed a lot of the industry though, so child-only policies are gone.

I don't think $20 copays are law though, you may want to check your carrier. Basic preventative stuff is covered without the deductible though, which for the most part already was by most if not all carriers (pap smears, mammography, yearly physicals). I recommend the HSA. Reason is if you look at the figures you posted, you have a $16,750 "stop loss" currently. With the HSA-100, your stop-loss is now $5k (or whatever deductible you choose).

Either way, pick up the phone and start an HSA, that money is tax-deductible and the interest is tax-deferred. Not enough money in the HSA to cover your procedure, say $2000? Xfer the amount into your HSA immediately and pay out of the HSA. You've instantly sheltered $2k of income.

 

ETA: I'll correct myself now (thats what I get for not reading). Your max out of pocket is $5100.

I'll just shut up now and go back to my corner.

 

Maybe that post was a little unclear. Worst case scenario, it's $4750 max per year out of my pocket in addition to the monthly premiums. That happens at $16,750 in medical expenses.

I am responsible for the first $1750, then 20% of the next $15,000 (or $3000) which gets me to my $4750 annual max out of pocket limit.

The biggest reason I haven't started an HSA yet is because I haven't had the extra money laying around to start one. I can come up with enough to cover my "worst case scenario" medical bills, but don't see any point in having money sitting around earning 1-3% interest when I'm still paying out interest on loans at a higher rate. I'd much rather apply my extra income toward paying down my debts. Once I have a good enough chunk of everything else paid off, I'll look into starting one up....but for now, it isn't necessary.

 

Your math is still a little off.