Individual Health Insurance

Is Being Uninsured Worth the Risk?

A friend of mine, "Mike," is about to change jobs. He has a waiting period of three months before coverage under his new employer's plan begins. That means he has a three-month period in which he'll either pay to extend his benefits under COBRA, buy individual health coverage, or go uninsured.

At first, Mike was inclined to go uninsured, save the money, and "hope and pray" no big medical expenses arise. He doesn't plan on going to the doctor during his hiatus from coverage, and his wife is covered through her job and they have no other dependents to worry about.

He knows I work in the health insurance industry so he asked me for my opinion: "Do I really need insurance before my new group coverage begins? Can't I pay out-of-pocket for any medical expenses that come up?"

"Not so fast!" I warned. Being uninsured can cost a lot more than paying health insurance premiums. Mike may be able to pay for a doctor's visit or prescription out of his savings, but what if he's in a serious accident or develops a serious illness? Without major medical coverage he'd be responsible for paying all of these unexpected - and costly - medical bills on his own.

Mike decided it's not worth the risk. He doesn't want to become a cautionary tale. He's purchasing a short-term individual health plan to fill the gap. It's less expensive than COBRA, and far less expensive than taking on the risk of huge, unexpected medial bills he's not planning for.

If you, like Mike, find yourself between jobs, ask yourself if being uninsured before your new group plan takes effect is a risk you're willing to take. Individual health coverage can provide peace of mind during this time.

Visit Celtic's Individual Health Insurance Learning Resources page to learn more about how individual health insurance can meet your coverage needs.