Health insurance is something that many people take advantage of. Others do not understand why they need it if Medicare, which they pay for every year on their taxes, covers the bill. Public hospitals offer service to anyone, and then mass bill the government for the services. Have you ever had something that you have ‘just in case?’ That is the basic premise behind medical insurance policies. It is better to have it and not need, than it is to not have it and need it.
You probably already know that if your annual income is over a set amount that you must have private insurance anyway. The current limits are set at $90,000 for a single person, and $180,000 for a family of three. For each child after the first the amount goes up by $1500. In this case you have no choice, unless you want to pay the penalty tax at the end of the year, which can be up to 1.5% of your annual income. This amount can add up to be a chunk of change if you make a decent amount of money. It has been shown through numerous studies that it is cheaper to have a basic health insurance plan than it is to pay the penalty tax. If you want to check it out and see the costs from the different companies, visit an online site that will give you a list of health funds, and compare the policies and prices for you.
Government rebates can be received if you carry health insurance throughout the year. Every year. The policy must include hospital stay coverage, general treatment coverage, or both. Most of the time you will see this discount on the premium that you must pay. If not, you can get a discount on your annual taxes when you file at the end of the year. If you are under the income limits listed above, you can also qualify for a discount on your tax return.
Chronic illnesses can have a huge burden on you, financially, physically, and emotionally. Your health should always be one of the most important things that you budget in every month. If you, or a family member, has a chronic illness that requires repetitive doctor visits, and numerous amounts of medications, you will be thankful that you have private insurance. It will help cover the bills that you acquire that Medicare will not fully cover. These bills can add up fast, especially when you look into the future.
If you have spent any time dealing with doctors, or hospitals, you know that Medicare does not cover everything 100% most of the time. Private health policies cover what basic government funded insurance policies do not. It saves you from having large out of pocket expenses. Depending on the policy that you have, you may not end up having to pay anything. If you do, it will be much less than you would have to pay if you did not have private insurance.
Health,gov states that private health insurance covers the costs that Medicare does not, and it allows you to be treated as a private patient. This means that you can go to a public hospital, or a private one. Either way you can be treated as a private person that has coverage above and beyond the basic Medicare insurance that the government provides. It may not seem like health insurance is important, especially if you live on a fixed income. That is far from the truth, though.
If you live paycheck to paycheck, it may be even more important for you to have a policy. If a medical issue should arise, your entire household could crash due to bills that you cannot afford. Medical insurance would help level things out and allow you to continue managing all your bills and expenses.