Common financial mistakes series, part nine
Mistake #9: Not carrying health insurance. When you’re looking for places to cut back, it can be tempting to cut back on health insurance. Even if you’re healthy, it can be very expensive, especially if you’re an independent contractor or otherwise not covered by an employer plan. However not carrying health insurance at all can have extremely negative effects: you may find it difficult to get access to good health care when you need it, and you may find yourself having to file bankruptcy over what otherwise might have been a relatively minor health issue such as a surgery. I was shocked at the cost of a completely uncomplicated gallbladder surgery. And even more shocked at the price I’d have been charged for it if I hadn’t had any type of health insurance.
Solution: At a minimum, carry a high-deductible policy that will cover you in case of an accident or unexpected surgery. Get as much coverage as you can, but be sure to get SOME coverage. If you’re leaving a job that paid for your health insurance to start a new one, get coverage to take care of the gap between when your old insurance ends and your new insurance takes effect. If you’re laid off or otherwise eligible for COBRA, take it unless you can find something better. The fees are high, but the potential costs of not being insured at all are higher. (Especially if you’re later denied coverage because you had a period of being uinsured.)
