EXPLORE A CONCEPT OF FI EVERY MONDAY

FOLLOW US

Fiology Lesson 33: Health Insurance

LESSON 33 : HEALTH INSURANCE

Fiology thanks Mandy Sleight of the the FI community for shaping this lesson.

Prior to the Affordable Care Act (ACA), health insurance was relatively easy to understand and, for the majority of people, more affordable. Remember the days when pretty much every employer offered one plan, and you either opted in or out? Gone are the days of copay only plans, where your employer pulled out a set amount each paycheck and you paid one amount to your doctor and that was it. Now we need to become familiar with words like HMO, PPO, HSA, deductibles, out-of-pocket maximums, and health shares.

Learning enough about health insurance and making an informed decision when purchasing a policy can have a  significant impact on your Financial Independence journey. Determining the best policy for your family as well as being able to forecast out-of-pocket expenses can help you budget and allocate funds to make sure you don’t end up delaying Financial Independence needlessly.

Explore:  GOHealth  blog at gohealthinsurance.com. This site explains how to navigate health insurance and provides tips on staying healthy.

Read:  Suddenly Deaf: Health Care And Financial Independence  from treadlightlyretireearly.com

Read:  A Flexible Plan For Health Insurance In Early Retirement  by Chris Mamula of caniretireyet.com

Watch:  How to compare and buy health insurance plans in 2018  by Let’s Talk Money Channel on YouTube

Watch:  What does the EPO, PPO, HMO, POS stand for in HEALTH INSURANCE?  by Let’s Talk Money Channel on YouTube

Watch:  Understanding Premiums, Deductibles, Copays and Out-of-Pocket Maximums  by PlanSource on YouTube

Take Action: Review your current coverage and compare that to what is offered in your state marketplace. Compare the deductibles, copays, annual out-of-pocket maximums and finally, the cost per month. If you have an insurance agent you trust, who handles your auto and home insurance, they may also have a health license and understand health insurance coverages. Request them to review your comparisons and recommend the most cost effective plan for you and your family.

Changing your plan could mean that you will have more money in your budget to put towards your Financial Independence goals, or increase your HSA contributions (if applicable). Do understand, however, the changes in actual coverage. A cheaper plan with inappropriate coverage can add significant risk to your Financial Independence.

Additional Resources:

Explore:  The Marketplace  at healthcare.gov. You can determine what carriers and coverages are available in your state.

Quote: “It’s no coincidence that four of the six letters in health are ‘heal’.” – Ed Northstrum

Leave a Comment

Disclaimer

Fiology.com uses content created by other sites to convey information. Fiology.com does not receive financial compensation from any referred site. Other sites are used to provide unique content on a particular topic of interest. The use of these sites does not indicate an endorsement of any products or resources they may promote. The owner of this site is not an accountant, financial advisor, CFP, or fiduciary and is not liable for any losses incurred from the use of the free information provided on this site or from the use of information found on linked sites. Please understand that while the information found on this site is intended to be useful, each individual person has unique circumstances that should be considered when developing and executing their personal financial plan. Each individual is ultimately responsible for managing their own finances. Please read the privacy policy for additional details.