Planning for ‘what ifs’ comes across as an oxymoron. How do you plan for the unexpected if it’s actually unexpected?
The solution is simple, plan for the knowns and use what you know to learn about what you don’t know. This is one answer to the question: why is health insurance important?
Certain amounts of negative consequences are inevitable when it comes to living. Rather than make no plan, insurance lets you create a shelter that can withstand some of these future negatives. The ones it can’t prevent, it can at least provide time and distance from.
Of course, that’s the abstract for more concrete reasons as to the importance of health insurance, read on.
Why is Health Insurance Important?
Health insurance doesn’t just help you. It isn’t a safety card flashed at a hospital to lower or avoid costs.
How insurance works is more about the behind-the-scenes action. A hospital, as a company (whether for-profit or non-profit), needs a revenue stream.
It’s hard to bill or collect from people piecemeal. Insurance guarantees payments (reimbursement of expenses) to enable the hospital to budget resources.
The primary bonus of health insurance isn’t to help in an emergency. It is to provide an incentive and ability to seek preventative care.
Looking for and finding small problems helps you to address issues that could create larger, chronic issues later on.
Of course, in an emergency, the benefits of health insurance intensify. Rather than worry about payments and stress about seeking care, you can focus on recovery.
Additionally, your ability to make timely payments or maintain an income drops sharply when you need emergency care.
By paying into an insurance fund prior to the need, you borrow from the past to pay for your present situation. This works far better than hoping to borrow from the future, which is constantly changing.
For many, the question isn’t so much about grasping the importance of health insurance, it is more about justification. If you are asking, “Should I get health insurance?”, you are more asking if you can afford it or avoid it for now in hopes of a better situation later.
Insurance is available through multiple sources that aim to offer more complete coverage to the population. Primarily in the US you are looking at Medicare/Medicaid through the government, insurance through an employer, or private health insurance.
Private insurance may be a stand-alone or added to employer-provided coverage. For those transferring jobs or going through a job reduction/loss, COBRA insurance exists as a policy to prevent coverage from instantly lapsing and to cover transitions.
With COBRA it’s possible to keep up insurance and not fall into a crack where you are vulnerable. After all, insurance is meant to help smooth over a health crisis, not lead to more of the same.
There you have it, multiple answers to the question: Why is health insurance important?
If none of them are compelling enough, remember that the future is an unknown and change is inevitable. For more news and stories about the world around you, check back with us.