Looking Ahead
Last but not least on our budgeting module is health insurance. This can be tricky to navigate especially given the current changing government policies. It is important for you to be aware of changes being made to health insurance. Many of you may be on your parent’s current health plan so this may not be an immediate concern. If you are going to be a college graduate, this may be something you want to start looking into as you’ll probably be paying for it yourself in a few years.
|
The Basics
Let’s start with this simple fact: the healthier your lifestyle, the cheaper your health costs. Of course there are unexpected occurrences which will lead to health related costs, but if you are on a healthy diet and maintain a healthy life, you probably won’t be faced with issues such as clogged arteries or diabetes. If you smoke, you are much more likely to have lung problems which leads to higher costs, not to mention the amount already being spent on cigarettes. These health issues can be avoided with a healthy life. If you’re unsure how healthy the life you’re living is, check out this quiz by Rutgers University to determine where you stand and where you can improve
For more specific facts on how your health impacts your cost of healthcare, check out the facts in the link below. It is important to develop healthy eating and lifestyle habits early when you’re young so as not to be faced with problems when you are older. You will thank yourself in the long run.
What is Healthcare Exactly?
Before discussing some health care options and the like, let’s take a look at what health care is exactly, how its different parts work, and different types of health insurance that’s out there. Watch the handy videos below to find out, it’s not as complex as you think!
|
|
|
|
Do I Need Healthcare?
Can you go about your day to day life without health care? Yes, you can. No one forces you to get healthcare. However, are you taking a risk by not purchasing health care? You most certainly are, and should an unexpected event happen, you are quite likely to spend a great deal of money. To put some of that into perspective, check out the pdf to a graphic on costs you might face without insurance. The numbers are a few years old, but it will give you a good ballpark idea of what you'd pay without healthcare.
Can You Afford Not to Have Health Insurance? | |
File Size: | 706 kb |
File Type: |
Healthcare Options
As a young adult or a student, you’ve got some options you may not have known about. For instance, you can stay on your parent’s plan until the age of 26, even if you get married before you reach 26. Follow this link for some helpful answers to general FAQ questions you may have, or didn’t know you had about healthcare.
You will also face the choice of whether or not to receive healthcare through an employer’s plan, the Affordable Healthcare Act, or through other options. If you’re unsure, here are some things you might consider.
Employer Healthcare: Depending on where you work, your employer may provide healthcare options for you. Here are some benefits to choosing this option.
Employer Healthcare: Depending on where you work, your employer may provide healthcare options for you. Here are some benefits to choosing this option.
- Coverage is guaranteed, meaning you could have any health problem and won’t be turned down to receive insurance.
- Employer coverage is dictated by federal law, meaning it may provide more benefits than individual plans. These benefits may include pregnancy care or mental health care. Individual plans are based on state requirements which may not offer this coverage.
- Health insurance is considered to be a business expense by the employer, meaning benefits are not taxed. You can also pay your premium on a pre-tax basis when you purchase it through your employer, aka you save money. It is much harder to accomplish this in an individual plan and you are likely going to pay more.
- Finally, your employer will pay part of the healthcare premium for the employee. For example, if the premium is $8,000 your employer will probably pay at least $4,000. This is much cheaper than if you were paying the whole $8,000 on your own.
You don’t have to go through your employer and some of you may decide to go with that route. There are three different possibilities you can explore when choosing your own healthcare.
- Private Company: The first and perhaps the most obvious option is to contact a health insurance agency and look at what plans are available to you.
- Insurance Agent or Broker: There is a difference between these two. An Insurance Agent will represent a single health insurance company, whereas a Broker will sell plans for several companies. You won’t be paying more by using either one as a guide in choosing a plan which works for you.
- Online Insurance Seller: Most things are available online these days, same goes for healthcare. There are a number of insurance companies which offer plans online and allow you to compare prices and features so as to choose what’s best for you.