The Basics Of Self Insurance

In the case you do not have any health insurance policy, it could be said that you are self insured person.

Self insurance means that you do not purchase health insurance policy and assume all of he financial risk by yourself. In the case you are unemployed and have been relatively healthy during last few years, from financial point of view it will be attractive to stay self insured.

Additionally monthly premiums that are associated with individual health insurance policy or Cobra could be quite expensive in your state. According to this the following things could come into your head:

– I can take a good care of myself and I do not need to visit my doctor very much. And I do not need to take any medicines. So I do not need any health insurance coverage.

– Health insurance coverage is a great thing, but I do not have extra $700 per month to pay premiums under Cobra.

– Now I have a good health, but my medical condition that I experienced 10 years ago will cause health insurance companies to charge me high premiums.

All these above mentioned reasons are justifiable for sure. You do not believe that the benefits from health insurance coverage justify what you will be paying for it. It could be true in some cases, but nevertheless there are some important risks about self insurance that you must consider:


The sense of getting the health insurance coverage is not to extract a certain value from the service that you are buying, but to protect you against low probability of events associated with your health conditions.

It is no matter that your current health conditions are stable, but it is impossible to predict what will be in 10 years, for example and whether you will need an expensive medical treatment.

Lack of prophylactic care

According to the statistic data uninsured people are more likely to experience health problems in comparison with insured people due to lack of preventive care. If you pay 100 per cent of your medical care, you do not tend to visit your doctor very often. In contrast, people who pay 100 per cent of uninsured people try to visit doctors only in the urgent situations.

Federal law of the United States of America considers a person who goes without health insurance coverage for more than 6 days to have a gap in coverage. It means that health insurance companies have the right to discriminate against people who have has their helth insurance policies lapse.

In the case you sign up for a group health insurance coverage with new employer, the health insurance company is allowed to exclude coverage of any pre-existing conditions for up to a year.

It is definitely smart to do your own investigation on the health insurance market. You should pay attention to the health insurance quotes. Also pay attention to the conditions under which these health insurance quotes are provided. This will help you to choose the best free health insurance plan quotes provider.

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