Health Insurance Myths - Part I

Popular perceptions about health insurance are often wrong. Here are some of the more misunderstood concerns that individuals have when it comes to obtaining health care coverage.

Myth#1: Since my employer provides me with health insurance, I'm OK.

Truth: While an employer based group health plan is still the most common type of health coverage, there has been a reduction in the number of employers who provide them. A growing number of employees are loosing their employer provided health care. Many employers are finding it difficult to continue to pay the rising premium cost and no longer offer healthcare benefits. Another drawback, an employer group policy will only cover an employee while they are employed there. Should they loose or leave their job, the employee would be vulnerable, especially if he/she had health problems or pre existing conditions. Individual health plans are portable so the employee can keep their coverage should they decide to change jobs or retire.

Myth#2: I'm healthy so I'll worry about health insurance when I get older or become sick.

Truth: It is usually more cost-effective to buy a healthcare plan when you are younger and especially if you are healthy. The cost of buying coverage tends to increase as you age. And buying coverage when you are young and healthy means you will already have the coverage if you develop a health condition later in life that could make you uninsurable. You purchase a healthcare plan to protect against unforeseen risk. Health care insurance is really no different than auto insurance... you can not get coverage after you have had an accident so why should your health plan be any different. If you can possibly afford the insurance, then there is no excuse for not having it.

Myth#3: It is easy for individuals and small businesses to purchase healthcare insurance.

Truth: Not really. Because the risk pool is smaller than employer group plans, the rates are generally higher for these markets. This leaves the most vulnerable individuals - those with pre existing conditions - either unable to find insurance, or when they do find it, the premiums will be more than they can afford. At the same time, small businesses are seeing their premiums rise each year, often times to a point they can no longer afford to pay.

Myth#4: The uninsured are usually able to get health care even without health insurance.

Truth: Unfortunately, access to affordable health care services is greatly diminished for individuals lacking a health plan. The uninsured are more likely to delay healthcare, live with illness longer and when they do seek help, it is usually at the most expensive setting, such as the emergency room. Out-of-pocket expenses in this manner are far from cost-effective. Ensuring affordable health care coverage will allow individuals to seek preventative care at appropriate times and hopefully stem the tide of mounting medical expenses.

Myth#5: Most uninsured individuals are uninsured by choice.

Truth: Not so. Cost, premium increases, and affordability are listed as the major reasons for not having health coverage. Additionally, others cited a loss of employment as a reason. Only about 10% give no real reason for not having a health plan. This would imply that most individuals do want health insurance but simply cannot afford it.

About the Author: Rudy Wilson is currently active in the insurance industry. He is also a researcher and an author. Visit his web site at http://www.UninsurableHealthSolution.com to view more information on finding affordable health care for the uninsured, the underinsured and the uninsurable.

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