Health Insurance vs. Healthcare Financing

Do you pay for health insurance or healthcare financing? While that may appear to be a nonsensical question, the answer says a lot about your view of health insurance and, probably, how much you pay for it.

Health insurance, at the end of the day, is chiefly concerned with protection against catastrophic health expenses. You pay a premium to provide protection against the $25,000 appendectomy, the $125,000 bypass procedure, the $75,000 bill at the hospital after the accident. These are expenses that could otherwise lead you to bankruptcy, cost you your home, or deal a significant blow to your financial future. Because life happens, and healthcare is expensive, you’re wise to protect yourself. But if that’s the major goal, then you don’t necessarily need to pay big bucks for a low deductible – what’s $5,000 if the insurance pays the other $75k? You also don’t necessarily have to get a copay to save $30 at the doctor. You’re after big-picture protection.

Healthcare financing, however, is a different animal. This is the plan that provides you with controlled costs for everyday expenses (a $35 doctor visit, etc.) and a low deductible because the risk is lower. You want predictability in your costs (even if those costs are significantly higher).

Which do you have? Because most people never reach their annual deductible, AC Forrest prefers health insurance over healthcare financing. That way you keep more of your money each month (rather than sending it away in the form of higher premiums), which you can save for that day when you have the big claim and have to meet the high deductible. A basic major-medical health insurance plan gives you greater flexibility with your money (and keep more of it).

Contact AC Forrest to learn more or get a free, no-obligation quote on major-medical health insurance for your family or your business.