So you just lost your job? It happens to the best of us. You can work as hard as you do, and sometimes things in life just happen. So, you've probably heard the HR department talking about Cobra. Everyone has probably already told you how expensive Cobra in Texas is, and they are right, it usually is pretty expensive. But, you have options:
- Risk it with no insurance
Well... the first two options are simple. You either take the cobra or you don't. The third can be a bit tricky sometimes. Here's what most people want: They want a plan that is less expensive than their Cobra policy, but that has the same benefits. Sorry... I'll tell you right now you will probably not find that. If you do, great. But, most of you will not. And don't be mad at the insurance company, either. It really isn't ALL their fault that rates go up... alot of other people participate in the causes of high medical costs and Cobra premiums.
So, what do you do? First, look at health insurance for what it is... you pay a company a monthly payment to assume your financial risk. You can either have them take some of the risk on... say they only pay after you've paid the first $2,000 (that's called a deductible). Then you've taken some risk, and the've taken the other risk. The more risk they take, the more you pay. The more you take, the less you pay. This is why high deductible HSA policies are much less than PPO policies with $10 copays and unlimited doctor visits.
So, now think about this: Do you ever want to be in this position again? Let's say you get another job, and then lose it. Do you want to do this all over again? Then, find an individual health insurance plan in Texas you like and stick with it. Even if you get a new job, you don't have to take their plan.
This is why many people choose HSA plans with high deductibles. They pay way less per month, and with the money they save on premiums, they pay only when they use medical services.... not when every other hypochondriac with a $10 copay wants to go to the doctor. They pay for their own care, not others.
Think of individual health insurance like car insurance. You have it. You need it. It's great when it pays for high costs that you could never pay for. But, you don't sit around planning ways to file claims. When you need radiator fluid and oil changes, you pay for it yourself. You even plan for when you need those new tires. Health insurance can be like this, and save you money. You'll save on your monthly premiums and your taxes with an HSA plan.
This information was provided by Mark Glen-Walker, www.MyHealthInsuranceGuy.com. Mark Glen-Walker is a local, independent agent in Texas who specializes in health insurance.
