Commentary: Is it better for otherwise healthy Americans to have health insurance for themselves and their families or is it better for them to save those hard-earned premium, co-pay and deductible dollars, and use them as they see fit?
Let’s look at the facts:
Lets’ say that an individual goes uninsured till he/she reaches thirty. At that point he/she gets married and starts a family. Now 32 with a baby on, the way the couple decides to purchase health insurance. With a yearly family deductible for three family members, in their age bracket, the family will pay a insurance premium of about $800.00 per month ($9,600 per year). The first $1,000 (deductible) comes out of their pocket, followed by a $20 co-pay for office visits and a 20% co-insurance on all procedures.
Believe it or not, the average healthy American may never use their insurance, other than for their routine yearly physical. If that’s the case then they will never meet their yearly deductible and those visits will be out-of-pocket. Example: the first year the family (above) who is now having a baby will pay $9,600 for the year of insurance, $1,000 for the deductible (for having the baby – all visits and birth), and after the deductible is satisfied, then 20% co-insurance for all visits and procedures. In the first year it will cost the family over $11,000 to have health insurance. Note: I paid cash for all midwife visits, ultrasounds, blood tests and birthing. The total cost for my daughter to be delivered was $6,500,
The baby is now born and it’s a new year’s worth of premiums. This family is otherwise healthy. The family takes proactive actions to take care of themselves. They get their teeth checked once a year ($100 each), husband and wife both get a yearly physical with blood tests ($400-600 for both), and the baby gets well-baby visits and immunizations ($400). At this point the deductible has been met but the insurance is not needed for the remainder of the year. Yearly cost: with slight premium hike its $11,000.
