$12,000 per year is a worst case scenario for older people in poor health.
I just checked what my older son would pay for private health insurance if he was working at a job with no employer insurance and not eligible for student health insurance -- less than $200 a month.
ehealthinsurance.com
For me, a zero copay, zero deductible plan would be $497, while a $5000 deductible, zero coinsurance would be $143, and there are dozens of choices in between. The $143 plan is a plan that's compatible with health savings accounts, and if I wasn't on my husband's account and didn't have the alternative of getting in through my employment ($150/mo. for 80/20 coverage, employer picks up the other $150) I might go for that.
If you're young and healthy, you should use high deductible insurance as a way of avoiding the disaster you describe.
Just as an FYI, if you have a catastrophic illness that wipes you out financially, apply immediately for Medicaid. If you wait (I think it's 30 days) you can't get Medicaid. The hospitals employ social workers who know how to do this for you, as it is a great benefit to the hospital. There's your catastrophic care.
There are restrictions on the assets you can own and be eligible for Medicaid but renters are almost certain to qualify once they've used up their savings.
Bottom line, the system isn't broken, people just don't know how to make good choices. They sit around expecting someone to take care of them, and don't look after themselves.
Every bankruptcy client I have spends $150 a month on cell phones and at least $60 a month on cable and eats out, etc. They could afford health insurance if they made it a priority. Pack your lunch, don't buy Starbucks, no fast food, etc., drive a car that gets high mileage instead of a Jeep or a Dodge and there's the money right there. |
