Is it better to cancel health insurance when it reaches $1700/Month for a young family of four?

Question

I'm a 35 Yr. old smoker, but what worrys the insurance is that they put out $15,000 for my 5 yr. old son on an MRI and an EEG to diagnose seizure activity (he had tics). The insurance says the fatty tissue found in his brain could have negative effects. Our neurologists says it's rare for the fatty tissue leading to problems. What could happen that we couldn't cover ourselves w/ $20,00 a year put away ourselves?

Answer 1

What is the worst case senario that can happen if you do not have insurance? You might become financially devastated when things happen. That means, you might be worse off then you are now.

Also, according to past experience working in an insurance company, the reason that they charge you so much is because that event is very likely to happen. The more likely, the more expensive. Therefore, the more expensive, the more you need to have that insurance.

Do not cancel your plan, instead find out more information about alternatives and go through underwriting from several companies. If they reject you(which will be most likely) at least you have something to fall back on when something happens. If they accept you, wait for 3 months before cancelling your current plan.

Answer 2

It depends. If you can put away $1,500 a month into a savings account that you can draw out of for medical care, then you might be better off doing that. However, if there is someone in your family that has a chronic and major medical problem, then you will want to keep the insurance.

Answer 3

Try to find a plan that only covers major emergency expenses.
That is better than being totally uninsured.
Here are some links.

Once I had a face nerve pinched, so half my face was paralyzed.
The drug store said drugs for that cost $300 per pill ( I had to take a steadily decreasing dose for about 2 weeks) so it was good I had insurance for that.

Answer 4

Thats 20,400 per year unless your family already had medical problems or is expecting some problem. Just think what that kind of money can do in a mutual fund. over a 10 year period it will more that double almost triple add that to every years 20,400 it will you will have put back 204000, out of pocket and have one hell of a return. You are beter off self insureing your health. and buying at a lower cost major mecidal only.

Answer 5

I would definitely shop around. Then one thing I personally do is since i dont get sick very often, I just go to the county clinic for annual check ups and if by some chance i get really sick, its alot cheaper that way. You only pay based on your income. Far as your children, have you ever check into Peachcare for Kids or Medicaid?

Answer 6

I suggest you consider a catastrophic plan or find a new health insurance.

You could also look into a health care savings account, to which you can deposit money pre-tax.

Answer 7

Are you getting it from work? Try eheath insurance for a quote. You may find better prices. They may not take you if someone is chronically sick though. Damn Heath insurance!

Answer 8

Do you have HMO, PPO, or PPS. Maybe you should try an HMO plan before you cancel it. If you have it thru your employer you can't cancel until open enrollment. Some employers wont allow you to cancel insurance unless you have other coverage...i.e. your spouse has coverage at his/her job.

Answer 9

purchase another plan but do not cancel this one until your other new plan is six months old and you have satisfied the elimination period so that you will be covered under any pre existing conditions.

Answer 10

NO, IMHO. Especially with kids. And a wife, if there's another kid, are you paying the childbirth costs out of pocket?

Uninsured medical costs are the number one cause of bankruptcy in the US.