If you're confused about buying your ownhealth insurance or you're wondering if you really even need it this video isfor you hi I'm Jen and I want to talk all about health care something thataffects your everyday life and something you really should know about now forcontext I spent about 15 years in the working world so I have a lot ofexperience with different types of health insurance employer sponsoredhealth care also I have purchased my own health insurance in two different erasboth in the pre Affordable Health Care Act Obamacare eraand after and there have been some very significant changes that I've noticedfor my own personal experience so.
Because this is an issue that reallyaffects everyone here in America I wanted to make a video just relaying allmy experiences in the hopes that it can help somebody out there who is trying tonavigate our really screwed up healthcare system and I think no matterwhere you fall politically and this is certainly not a political video I thinkmany Americans feel that this health care system is confusing a little bitantiquated and also like ridiculously expensive which I certainly feel it isalso a disclaimer I am by no means a health insurance or medical expertbefore you take my advice be sure to talk to a representative in the healthcare insurance industry talk to an agent.
Also I'm gonna link some resources downbelow so you can do your own research no matter who you listen to here on YouTubeyou should always do your homework and look into an issue yourself especiallybecause a lot of this health care information in health care plans willdiffer widely state to state now what I'm gonna do here is go through my ownhistory with health insurance and also try to explain what the differences arefrom the ages of about 22 to about 35 I was on an employer-sponsored healthcareI have never had a period in my life thank goodness where I was uninsured andI've always been very diligent about making sure I always had healthinsurance now when you are working for a.
Company and they offer health insuranceusually what happens is the company has some sort of deal with an insurancecompany and they will cover all the employees they usually get a groupdiscount but there are some limited plans you have to choose fromand normally a company will cover and subsidize part of the cost for your planand then you pick up the rest the upsides to this is your premiums arenormally deducted out of your payroll so if you're paid every two weeks and sayyour premiums are like sixty-seven dollars that sixty-seven dollars wouldcome out of your paycheck normally I believe even pre-tax so yousaved a little bit of money there.
Because you paid with pre-tax dollarsversus after-tax dollars and you also did don't have the hassle of like havingto write a check or pay online or do any of that mess which is what I'm doing nowbecause currently we do buy our own health insurance over the years I've hadvarying quality and health insurance plans from really great plans where mypremiums were pretty low and I had like doctor's visit co-pays of like $25 andthen prescription co-pays of like $5 to the lower quality plans where they'reusually more high deductible plans in fact one employer I worked with hadmostly high deductible HSA plans and what that meant is that your deductiblemight be like six thousand dollars a.
Year so that means that if you get sickor if you have hospital visits or you need medication you have to payout-of-pocket six thousand dollars before your insurance will even kick inso it's really for catastrophic emergencies like if you're a car in acar accident or you need surgery but for the average person who's fairly healthyyounger and doesn't have a lot of medical issues you're gonna have to payout of pocket for most stuff the other thing with that is which was sort ofgood was that I had a health savings account and the company kicked in apretty decent amount of money every year so I would get like $750 or a thousanddollars every year and actually I still.
Have a lot of that money in my HSA Ihave about I think $4,600 in an HSA which is mostly money that was kicked infrom my former employer and you can use that money for any medical relatedexpense it is tax free if you're anticipating medical expenses you cankind of front-load your HSA and say you know hey this year I want $5,000 to goin my HSA and that money will come out of your paycheck before it's tax socontributing $5,000 of your gross income is actually a better deal for youthanking tributing thousand dollars of your net incomeafter it's already been taxed compared to some people I know it is just myhusband and I were younger we don't have.
Any health issues and we are child foryou so we do not have kids when I was at that employer with the high deductibleHSA plan a lot of people with families really hated it because they had to taketheir kids to the doctor all the time and people got sick more often so theywould have to shell out of pocket for all of those expenses until theirdeductible was met which kind of sucks so that is the downside so a highdeductible plan is better for someone if you're younger healthy you don't reallyhave any medical issues and you don't really go to the doctor a whole lot andyou really just need health insurance is more of a safety net for all of you outthere and more unconventional employment.
Situations like your employer doesn'toffer health insurance you work part time or maybe you freelance full-timeI'm in the same boat as you and currently we are purchasing our ownhealth insurance we did do this once before in 2011 and this was before theAffordable Health Care Act known as Obamacare was put into place and I willpoint out the differences and I know this might be a little bit controversialbut believe me I'm really not trying to be political there are good things andbad things with the Affordable Health Care Act but I really just wanted to bereal and I'm gonna lay it all out for you in 2011 we purchased our own healthinsurance and what you do is I went to.
One of those websites like insurance andyou plug in some basic information and then an agent gives you all your optionsfor your state at the time I think I went with Aetna insurance it was decentinsurance it was actually better than the insurance I had previously had at anemployer and it cost of myself and my husband about a hundred and eightydollars per month it did have some deductibles but also it had you knowco-pays for doctor's visits ER visits or for prescriptions so for your normaleveryday stuff it was actually pretty decent insurance and it was a lotcheaper than I was expecting I was expecting it to be more like fourhundred dollars a month or something.
Like that but I was pleasantly surprisedat the time that it was so inexpensive we did have to have somegreetings I don't think there was an in person physical or anything but I didhave to answer some questions over the phone and just complete a questionnaireabout my medical history and whatnot but it wasn't super invasive and it was apretty easy process we had to this insurance for about sixto eight months and I thought it was pretty good coverage now fast forward to2018 when I had to do this all over again I start out with the same thing Iwent to a website for insurance and I plugged in some information the onlyoption I would have in Florida was to go.
Through the healthcare marketplaceexchange Obamacare ACA thing so I went to healthcare.gov now to their credit Iknow they got a lot of flack for having website issuesI actually didn't find the website to be too daunting it is a pretty lengthyprocess I think it took a couple hours to navigate the website and then figureout what plans were available to us interestingly it is all privateinsurance companies but they're all run through healthcare.gov when it spits outyour options it gives you all of these different plans I was kind of surprisedat the variety but here's the kicker the plans for the most part are super crappyunless you want to pay astronomical.
Premiums every month which I personallydo not now being in this situation I felt okay with going with a more highdeductible catastrophic policy the retail price on the one I picked for usfor 2018 was about 671 dollars but for last year I will point this out we didget a bit of a tax credit so how this works is that if you make between 100and 400 percent of poverty level income you are eligible for an advanced taxcredit through the IRS now I'm gonna put some links below cuz this gets a littlebit complicated and I'm not an IRS or a health care gov an amine so on thewebsite you can check to see if you're available for these advanced tax creditsyou plug in some income information and.
It tells you generally what kind ofcredit you can expect so you have the option you can take no credit at thetime beam and pay like the full price so we would have paid $671 dollars or youcan choose to take some of the advanced credit for 2018 I chose to take a twoand $50 a month advance tax credit just based on our income levels theyfluctuated quite a bit and we were in a lower tax income bracket than we hadbeen in years past so when I did our taxes at the end of the year it workedout okay but you kind of have to be careful because if you take too much ofa tax credit and you have a higher income than you originally calculatedyou have to pay the tax credit back and.
If you make more than 400% of thepoverty income level you don't get any tax credit and you have to pay the fullprice after doing all that and choosing a plan at that point you can pay yourfirst premium and you have to then go to the health insurance carrier website thecompany I chose was ambetter yeah it was it was pretty crappy insurance but itwas like the best of the crap and I was okay with having a high deductible planonly because we have enough money where we could cover the deductible and wedon't get sick a lot but again we were paying a lot more than we did in 2011and certainly a lot more for a lot worse insurance than I ever did working for acompany once you get that all set up.
Then you really just have to pay yourpremiums every month to the insurance company and I set up online payment withambetter you get insurance cards it doesn't really cover a whole lotuntil you meet that deductible and I'm actually gonna throw up my coverageright here just so you can see black and white what kind of coverage we aregetting just so you know this plan does not cover much until you meet thatdeductible it does cover some super basic stuff like a flu shot or like anannual wellness exam at your primary care physician but if you have anythingoutside of that realm going on be prepared to pay out-of-pocket becausethat's what you're gonna have to do and.
Yes that includes prescriptions nowyou're probably wondering hey Jen doesn't your insurance provider usuallynegotiate some sort of discounted rates you know if you have to go to the doctoror get insurance maybe to some degree but I haven't really noticed any sort ofsignificant savings when I've had to go to any of these placesI believe I did have to go to an urgent care last year because I got bit by abug and my foot started swelling up and I believe it was like $200 and I wasthere for like 30 minutes so it didn't really benefit me to have insurance inthat situation in fact they have lower rates for people who are uninsured andpay cash going into 2020 I had to do.
This again and yes you do have to herthis process every year REE qualified do your income levels again and then selecta plan in the plans do change from year to year the premiums go up and I'venoticed the deductible levels definitely change even with the same plan so therewere quite a few changes that I was not prepared for this year now my income hasgone up in 2019 and so is my husband's so we were definitely no longer eligiblefor any sort of advanced IRS tax credit so our plan for 2020 is going to costsix hundred and eighty dollars per month yeah you heard that right six hundredand eighty dollars a month for really crappy high deductible insurance for twohealthy people without children in their.
30s now I know the Act was called theAffordable Health Care Act speaking from personal experience I have not foundthat to be true and I in fact I find that a little bit misleading I do feelthat the current system is intended to help lower-income individuals certainlyif you make between 100 and 400% of the poverty level which currently isconsidered around sixty seven thousand dollars you will get cheaper insuranceand in fact if you don't make a lot of money your health insurance is probablygoing to be pretty close to free under this whole system so that is good forpeople who cannot afford health insurance later on in this video I amgoing to go more in-depth on why you.
Really do need health insurance and whyyou should not skip having it one thing I did notice is that for 2020 we hadquite a few more options for plans which I do consider a good thing and for 680dollars even though we are gonna be paying significantly more than last yearthe plan is slightly better and I say slightly it still is very highdeductible but the deductible is a little bit lower than the plan we'recurrently on and I did look and one thing you need to look at when you'relooking at health insurance is after you meet the deductible is there one alifetime max and I noticed on the plan I chose for 2020 there is no lifetime maxor cap on how much you can get in.
Benefits that could be reallydetrimental if you have a major medical event and say you blow a million dollarson hospital stay which is entirely possible that could be it for you everso you definitely want to look for a plan that does not haveMax or a cap on it and the other thing I was looking at is coinsurance after thedeductible is met on the new plan I'm getting for 2020 there is no coinsurancerequired for a hospital stay or like an ER visit and for some plans even if youmeet the deductible you still have to pay 50% of the cost of your hospitalbill or like 50% of an ER visit so that's a little bit misleading becauseyou'd think hey you know once I meet the.
Deductible it's all free from there butunder a lot of plans there is a lot of fine print and a lot of restrictionsthat you really need to be aware of because it could make a huge differenceif you have something happen to you so speaking as someone in their late 30swho has been dealing with health insurance for at least the last 15 yearsoverall I did find that the health employer-sponsored plans did often havethe best coverage and they were the least expensive although caveat to thatif you're adding just yourself the employee it's usually a pretty good dealbut I noticed once you tack on like a spouse or children that's where they canget exponentially expensive something.
That really frustrates me about thecurrent health care system and I know a lot of other people is the whole factthat often your health insurance policies are tied to employers and in acountry where we change jobs a lot this isn't like the 50s where someone had thesame job for 20 or 30 years you're changing employers all the timeand pretty frequently I think this is a pretty messed-up way to do healthinsurance and I've been talking to some other people and I think a lot of uswere in agreeance no matter what side of the political aisle you are on thathealth insurance should be tied to the individual and not necessarily to anemployer because then you're in a.
Situation that's detrimental to you youdon't have consistency or continuity in your coverage and often you're just kindof sitting there praying that your next employer has decent health care coverageor even offers it at all and a lot of employers don't moving on to thequestion of whether you should have health insurance or not yes my answerwould be hell yes recently one of my husband's co-workers was unfortunatelythe victim of a hit and run accident he was walking to work and a driver hitliterally hit him and just took off this guy did file a police report but theyhave not been able to track down nor the car or the driver and because he was notin a vehicle himself he wouldn't be say.
Covered under his own auto insurancepolicy this guy does not have health insuranceso I know if you are young and you're healthy you might be like you know whydo I really need this it's really expensive and you know probably nevergonna use it anyways situations like this are what health insurance is forand let me tell you all the ways that it can wreak havoc on your life ifsomething happens to you and you are uninsured now this young man my husbandactually drove him to the hospital he suffered some pretty serious injuriesfrom this hit-and-run and he was at the hospital for two hours got a CT scan andsome x-rays basically and do you want to.
Know what his bill was it was eighty sixhundred dollars now can you imagine how much more expensive this would be if hehad been say hospitalized for a week or had more serious injuries needingsurgery that number could easily rise to $50,000 $100,000 several hundredthousand dollars and if you don't have that out-of-pocket to coveryou're basically screwed hospital bills are no joke people if you don't pay themthey go into collections and then your credit is ruined for a very long timeand you may have to end up filing for bankruptcy so even though healthinsurance might seem like a bit of a ripoff and believe me I feel that way alot too it's something you definitely.
Should have and it's not something youshould skip you're basically playing Russian roulette with your medicalfuture and with your financial future now this guy did go to a hospital and Ido want to put this out there for anyone who does not have health insurance andhas something happened to them if you look at a hospital'spolicies they usually have a section for paying your hospital bill and aboutfinances many hospitals especially nonprofit hospitals have a significantcash discount we're talking 50 percent or more if you pay in cashother things hospitals typically do have our financial aid programs to help theless fortunate which is a good thing and.
They have payment plans but seriouslypeople do not skip the health insurance think of it as just as important if notmore important than auto insurance which is a legal requirement if you have a carand you drive on roads well yes I did just tell you about all these optionshospitals typically have to help people pay their hospital bill do you reallywant to be in that situation I used an example of $8,600 but what if your billis two hundred thousand dollars even if you can negotiate thatdown get financial aid you're still gonna end up being bankruptso why end up there in the first place I'm just saying get the health insuranceand if you're all like but Jen I really.
Can't afford health insurance it's waytoo expensive I would strongly encourage you right now don't wait go tohealthcare.gov input all your information see what plans are availableand also put in all the income information because you're gonna see ifyou don't make a lot of money you would get a very large tax credit and thatmight make it pretty affordable for you again it is catastrophic healthinsurance but the reason we get insurance is in the hopes that we neverreally do need it so if you never need health insurance but you pay for itanyways that's still a better deal that if you end up in the hospital and ifyou're one of those people watching this.
Video thinking whatever I'm not doingthis I'll be fine I'm here to tell you you're a damn fool at some point in yourlife there's a pretty good chance you're gonna either end up in the hospital orexperience a significant medical issue and these things are expensive so besmart get the health insurance I'm telling you get the health insuranceeven if you don't think you can afford itcheck out the website healthcare.gov I'm gonna link everything below you reallyneed to look at your options and see what kind of plans are available andjust know if an emergency happens you'd rather be prepared than not also don'tthink to yourself hey if I rack up a.
Bunch of medical debt I'll just file forbankruptcy it'll be fine right no it will not be fine and here is why thereare a lot of negative ramifications that come with filing for bankruptcy thatwill affect your everyday life for a very long time things like buying ahouse getting a car even renting an apartment and let's not forget manyemployers now do credit checks on potential job candidates especially ifyou are getting into a position where you would handle money if you can't showthat you manage your personal finances well why would they think that you canmanage a company's finances well if you've made it this far congratulationsI guess surprises becoming better.
Informed about health insurance I don'tknow but thanks a lot seriously I know I talked for a really long time and thisis a topic that can be a little bit dry and also a little bit gloomy but it'ssomething that I feel is so important and Ireally wanted to get the message out there because I think the more peoplethat understand why you need health insurance and also understand theoptions the better off we'll all be right I was talking about this all to myhusband and he was shocked at how many of his co-workers were just veryuninformed about health insurance in general they were talking about theco-worker that was in the accident and.
Some other people are like oh he's he'she doesn't have to pay anything he's covered right and he's like by what hedoesn't have insurance so I feel like a lot of younger people might not knowenough about the topic but that's why I wanted to make this video and if you'reinterested in learning more I'm putting a lot of resources down below in thedescription box so you can kind of research more on your own but pleaseguys don't skip this it's really important also if you're looking forsomething else to watch next I know after you've just watched me talk forlike a half an hour you're welcome to watch another video I made about moneymistakes I made in my 20s I'm Jen I'll.
See you guys next time