Thursday, April 8, 2010

The "Big Three Myths" of Health Insurance

Reprinted with permission from

Don't fall for the common myths about insurance

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If you’re one of the millions of Americans who feel as though buying health insurance is money down the drain, you could already be a believer in one of the Big Three Myths. Think about it: The law forces us to purchase car insurance, and loan requirements force us to buy homeowner’s insurance, but health insurance is up to us. And honestly, what’s more important to you: Your home, your car or your health? Going without health insurance can be the worst gamble anyone ever makes. One bad roll of the dice could cost you the freedom your good health gives you every day while draining your savings, and depending on the case, could even cost you the car and the house for good measure. So don’t buy into the myths:

Myth #1: It is always better to have employer-sponsored policy

Traditionally, the majority of Americans receive coverage through their employer. Including health benefits with a compensation package has always made sense because large groups can negotiate better prices than individuals, right? Well, maybe not. The cost of employer-sponsored coverage has been steadily increasing and employers are faced with fewer options. This is great for individuals with chronic medical conditions, but it means higher out-of-pocket costs for all employees, even the healthy ones who never go to the doctor.

Due to double-digit increases in health care premiums[1], employers are facing a tough choice; either pass the costs onto employees or reduce benefit levels. Many employees have noticed copays and prescription drug costs increasing while simultaneously contributing more and more to cover themselves and their families. It can definitely feel like a waste of money if you hardly use your insurance, so why not look for a plan that meets your specific needs rather than overpaying for a group policy that includes coverage you wont use?

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