Insurance is a necessary evil in our society. Unless you are among the rare few who has never needed medical treatment, or unless you have never had to and never intend to raise a family, then you more than likely need medical insurance to manage the cost of healthcare.
And if you are in need of buying your own health insurance, because you are either self-employed, unemployed, or your current employer doesn't provide adequate health insurance coverage at all, then you definitely know what a drain on your wallet medical insurance can be.
What if you didn't have health insurance? Some would argue that whether you pay for health insurance or pay for all of your medical expenses out of your own pocket, that at the end of the day, you really are paying the same amount every year. The only difference is that with health insurance, you write most of your checks payable to the health insurance companies, and if you don't have health insurance, you write most of your checks payable to your medical provider instead.
A perfect example of this is the concept of the deductible. If you have a lower deductible that means you pay less out of your own pocket for your expenses. But are you? You still have to pay health insurance premiums! And usually if you have a lower deductible, the insurance company will make up for the difference by charging you a higher premium. And it works the other way as well. If you have a higher deductible that means that you will be responsible for paying more money out of your own pocket, but then your health insurance premiums will be lower.
The phrase "out of pocket" is misleading, because whether you pay your deductible or pay your premiums, everything is still "out of the same pocket".
And if you are in need of buying your own health insurance, because you are either self-employed, unemployed, or your current employer doesn't provide adequate health insurance coverage at all, then you definitely know what a drain on your wallet medical insurance can be.
What if you didn't have health insurance? Some would argue that whether you pay for health insurance or pay for all of your medical expenses out of your own pocket, that at the end of the day, you really are paying the same amount every year. The only difference is that with health insurance, you write most of your checks payable to the health insurance companies, and if you don't have health insurance, you write most of your checks payable to your medical provider instead.
A perfect example of this is the concept of the deductible. If you have a lower deductible that means you pay less out of your own pocket for your expenses. But are you? You still have to pay health insurance premiums! And usually if you have a lower deductible, the insurance company will make up for the difference by charging you a higher premium. And it works the other way as well. If you have a higher deductible that means that you will be responsible for paying more money out of your own pocket, but then your health insurance premiums will be lower.
The phrase "out of pocket" is misleading, because whether you pay your deductible or pay your premiums, everything is still "out of the same pocket".
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