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Started By
Message
Been experimenting with "health insurance" for a year and a half
Posted on 7/30/15 at 10:31 am
Posted on 7/30/15 at 10:31 am
I'm 36, not married, no kids, self employed.
After i quit my corporate job, I looked for coverage at BCBS. They were asking around $300 per month. So instead of signing up, I decided to put the $300 into a separate checking account. Flash forward a year and a half later, the only medical related expenses were 2 trips to the dentist, costing around $400. I have $5000 in the account for medical related purposes.
Now, I know this is not for everybody(can't take this risk if you have kids). But I looked at my parents medical history and they are relatively healthy. I exercise 5x a week, eat well, maybe get sick once every 5 years.
I may sign up for health insurance when I'm in my 50s when major organs begin to have issues and sickness becomes more prevalent. But for now, I can't see giving BCBS $300 each month and not using their services. And I don't want Obama Care since I don't need government's "charity".
After i quit my corporate job, I looked for coverage at BCBS. They were asking around $300 per month. So instead of signing up, I decided to put the $300 into a separate checking account. Flash forward a year and a half later, the only medical related expenses were 2 trips to the dentist, costing around $400. I have $5000 in the account for medical related purposes.
Now, I know this is not for everybody(can't take this risk if you have kids). But I looked at my parents medical history and they are relatively healthy. I exercise 5x a week, eat well, maybe get sick once every 5 years.
I may sign up for health insurance when I'm in my 50s when major organs begin to have issues and sickness becomes more prevalent. But for now, I can't see giving BCBS $300 each month and not using their services. And I don't want Obama Care since I don't need government's "charity".
16
Posted on 7/30/15 at 10:36 am to PeteRose
That's kind of what I do, but through a high deductable plan and an HSA. I took what I would've paid in premiums and put it in the HSA. After the 1st couple years I had money in the bank. Then tonsils, tubes, adnoids, braces yada yada yada it was probably a wash.
I hit the max out of pocket a couple of years so it is a good thing I did have coverage or I'd be bankrupt or OT poor sub 700 credit score.
I hit the max out of pocket a couple of years so it is a good thing I did have coverage or I'd be bankrupt or OT poor sub 700 credit score.
Posted on 7/30/15 at 10:37 am to PeteRose
that can work for some, but I have to have peace of mind. If you were to get seriously injured that 5k will be gone quick and you'll have a shite ton more to pay.
Posted on 7/30/15 at 10:38 am to PeteRose
why not get a high deductible HSA?
Posted on 7/30/15 at 10:40 am to PeteRose
Besides the fact that you will be hit with a penalty at tax time for being uninsured (aka a "shared responsibility payment"), you're engaged in a form of speculation. No one PLANS to have a catastrophic accident or a cancer diagnosis, and your $5K savings (or $20K or even $50K) will be a fart in the wind should something serious happen.
Okay, so you've got great genes, a good diet, and are reasonably active: a bad fall off your racing bike, a wrong step while trail-running, or slipping off a ladder while putting up the Christmas lights. Sh*t happens, and it's always expensive.
Plus, if you're self employed, the insurance premiums are a deductible business expense.
Okay, so you've got great genes, a good diet, and are reasonably active: a bad fall off your racing bike, a wrong step while trail-running, or slipping off a ladder while putting up the Christmas lights. Sh*t happens, and it's always expensive.
Plus, if you're self employed, the insurance premiums are a deductible business expense.
Posted on 7/30/15 at 10:40 am to Salmon
quote:
why not get a high deductible HSA?
tell me about this HSA?
Posted on 7/30/15 at 10:46 am to hungryone
quote:
a bad fall off your racing bike, a wrong step while trail-running, or slipping off a ladder while putting up the Christmas lights. Sh*t happens, and it's always expensive.
I get what you are saying. I used to think the same way when working a corporate job. But I don't want to live with the "what if" mentality. Sure, if shite happens. But I can cover most operations at my own expense. It would suck, but I never had such operation my whole life and I like to take my chances.
About getting old and dying, I used to be obsessed with the concept of death. But as I got older, I came to realize it as a part of life and have embraced it. We can't live forever and I wouldn't want to.
Posted on 7/30/15 at 10:50 am to PeteRose
quote:
Sure, if shite happens. But I can cover most operations at my own expense. It would suck, but I never had such operation my whole life and I like to take my chances.
without completely crippling you financially? I doubt it
and like she said, you will get hit with a penalty come tax time for not having insurance
you can google HSA, it will explain it better than I can, but a HSA is what you need/want
Posted on 7/30/15 at 10:57 am to PeteRose
quote:This will not go far in the event something does happen. Hell I just had a colonoscopy due to passing blood and it cost me $1300 and I have insurance.
I have $5000 in the account for medical related purposes.
ETA: Not to mention you're looking at a fee of 2% of your income for not carrying insurance
This post was edited on 7/30/15 at 11:00 am
Posted on 7/30/15 at 11:05 am to Salmon
quote:
without completely crippling you financially? I doubt it
what is consider crippling?
If health insurance is a safe haven for most people. But to me, it's has negative value, meaning you get less out of it from what you put in.
Posted on 7/30/15 at 11:06 am to PeteRose
That works till you get Cancer or some other disease. I have a friend who got cancer at 27. Very in shape guy who had never had any problems.
I would suggest getting some basic insurance at some point.
I would suggest getting some basic insurance at some point.
Posted on 7/30/15 at 11:07 am to ForeverLSU02
quote:
Not to mention you're looking at a fee of 2% of your income for not carrying insurance
2% of your income on paper that is.
Posted on 7/30/15 at 11:07 am to SouthOfSouth
quote:
I would suggest getting some basic insurance at some point.
i already said in my 50s.
Posted on 7/30/15 at 11:13 am to PeteRose
quote:
If health insurance is a safe haven for most people. But to me, it's has negative value, meaning you get less out of it from what you put in.
yea until you have a $150,000 medical bill that you're on the hook for.
Posted on 7/30/15 at 11:15 am to PeteRose
quote:That's the price you pay to manage risk.
But to me, it's has negative value, meaning you get less out of it from what you put in.
But here is what happens with people like you. Some uninsured WILL have shite happen to them that they are unable to pay for, and guess who will end up paying for it. The insured, in the form of ever-rising premiums. You claim that you don't want government's "charity", so instead you choose to join a group that relies on the charity of all of us? Kind of shitty if you ask me.
Posted on 7/30/15 at 11:28 am to PeteRose
quote:
About getting old and dying, I used to be obsessed with the concept of death. But as I got older, I came to realize it as a part of life and have embraced it. We can't live forever and I wouldn't want to.
As I've said on this board before, being dead is cheap. It's staying alive that's damned expensive. Unpredictible shite like a brain aneurysm can cost hundreds of thousands and leave you permanently impaired or unable to live independently. I also won't go without disability/income interruption insurance for self & spouse. The couple hundred bucks a month for health & disability provide me with peace of mind & a real safety net.
Posted on 7/30/15 at 11:28 am to PeteRose
this is similar to how a HD plan coupled with an HSA works, but you pay for catastrophic care.
I highly recommend you get something with a high deductible.
I never got sick, never went to the doctor for about a 10+ year stretch, then i was diagnosed with testicular cancer. No family history and still was hit. Treatment was around $100k+
I highly recommend you get something with a high deductible.
I never got sick, never went to the doctor for about a 10+ year stretch, then i was diagnosed with testicular cancer. No family history and still was hit. Treatment was around $100k+
Posted on 7/30/15 at 11:39 am to PeteRose
Doesn't carry insurance
Doesn't know what an HSA is
Possibly evading taxes
Yeah, sounds like you make solid decisions.
Doesn't know what an HSA is
Possibly evading taxes
Yeah, sounds like you make solid decisions.
Posted on 7/30/15 at 11:42 am to PeteRose
My Uncle sounds like you. Single, no kids, independent contractor making good money. Had a heart attack at 47...
$122,000 bypass surgery. He's still paying for it.
$122,000 bypass surgery. He's still paying for it.
This post was edited on 7/30/15 at 11:50 am
Posted on 7/30/15 at 11:49 am to PeteRose
As others have said, you need an HSA plus HD insurance.
An HSA is an account into which you can put up to a certain amount each year (I think it's $3500 or so but check). It functions very similarly to a traditional IRA in the sense that your contributions are tax-deductible. But you can take money out to pay for qualified medical expenses, and once you hit retirement age you can take it out for any reason at all.
In other words, it is another traditional IRA that you can tap for medical expenses without paying a penalty. This makes your medical costs free of income tax - much better than using a standard checking account.
In order to establish an HSA, you also have to buy high deductible insurance. Basically it means you're on the hook for your healthcare costs up to a certain amount (say, $5000) and then after that the insurance kicks in. You will need this if you have something major come into play. Because the deductible is so high the premiums are lower than for traditional "cafeteria" insurance.
Optum Health is probably the industry leader with this kind of arrangement but there are others.
An HSA is an account into which you can put up to a certain amount each year (I think it's $3500 or so but check). It functions very similarly to a traditional IRA in the sense that your contributions are tax-deductible. But you can take money out to pay for qualified medical expenses, and once you hit retirement age you can take it out for any reason at all.
In other words, it is another traditional IRA that you can tap for medical expenses without paying a penalty. This makes your medical costs free of income tax - much better than using a standard checking account.
In order to establish an HSA, you also have to buy high deductible insurance. Basically it means you're on the hook for your healthcare costs up to a certain amount (say, $5000) and then after that the insurance kicks in. You will need this if you have something major come into play. Because the deductible is so high the premiums are lower than for traditional "cafeteria" insurance.
Optum Health is probably the industry leader with this kind of arrangement but there are others.
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