Why Is Health Insurance Important Even If You Are Young and Healthy?

By: Michael Kopek September 12, 2024 10:55 am

Time to read: 5 Minutes

Life has a way of surprising us when we least expect it. As young, healthy individuals, we often believe we’re invincible, free from the burdens of health concerns that might plague others.

But here’s the truth: health insurance is not just for those who are older or facing health challenges. It’s an essential part of safeguarding our future, providing peace of mind, and ensuring that we can focus on living our best lives without the shadow of uncertainty looming over us.

Key Takeaways

• Unexpected Events Are a Reality: Health insurance provides a crucial safety net, protecting you from the financial shock of accidents, illnesses, or emergencies that can happen to anyone, regardless of age or health.
• Preventive Care Is Key: Access to preventive services through health insurance helps you maintain your health and catch potential issues early, setting you up for a healthier future.
• You Have Options: Whether staying on a parent’s plan, exploring ACA Marketplace options, or choosing employer-based coverage, young adults have multiple pathways to secure health insurance that fits their needs.

5 Reasons You Should Consider Health Insurance

1. You’ll Be Prepared for the Unexpected

We all like to think we’re in control, but life has its own plans. An accident on the weekend, an illness that comes out of nowhere—these things can turn your world upside down in an instant.

Without health insurance, the financial implications can be overwhelming. Imagine a simple misstep leading to a broken leg. The cost? Around $7,500. A few days in the hospital? Easily $30,000.

Health insurance ensures that these unexpected events don’t derail your financial stability or add stress to an already challenging situation.

2. Health Insurance Can Save You Money

It’s easy to think of health insurance as an unnecessary expense, especially when you’re feeling good and living an active lifestyle. But here’s the thing: medical care, particularly in emergencies, is expensive.

Health insurance helps absorb these costs, making it possible for you to get the care you need without a financial burden that could take years to recover from. Moreover, many health insurance plans include preventive services like annual checkups and vaccinations at no extra cost.

By taking advantage of these services, you’re not just saving money; you’re investing in your long-term health.

3. Access to Preventive Care

Prevention is always better than cure, and that’s where health insurance shines. With regular checkups, screenings, and vaccinations, you’re not just reacting to health issues—you’re preventing them.

These services are often fully covered by insurance, meaning you can stay on top of your health without worrying about out-of-pocket costs.

The Affordable Care Act (ACA) ensures that many of these preventive services are covered without co-pays or deductibles, giving you the tools to maintain your health proactively.

4. Financial Security and Peace of Mind

There’s something incredibly comforting about knowing you’re protected, no matter what life throws your way. Health insurance isn’t just about covering costs; it’s about ensuring that you can focus on recovery rather than worrying about bills.

Most health insurance policies have out-of-pocket maximums, which cap the amount you’ll need to pay in a year. Once you hit this limit, your insurance takes over, covering 100% of your healthcare costs.

This kind of security allows you to live your life fully, knowing that you’re prepared for whatever comes your way.

5. Young People Value Their Health

It’s a common misconception that young adults don’t care about their health. The truth is, staying healthy is a top priority for many.

A recent survey of Millennials highlighted that while cost is a concern, maintaining health is paramount. Health insurance supports this priority by making it easier to access both preventive care and treatment when needed. By staying on top of your health now, you’re setting yourself up for a healthier future, free from the complications that can arise from neglected health issues.

Health Insurance Options for Young Adults

Navigating health insurance options might seem daunting, but understanding what’s available can make the process much smoother. Here’s a breakdown of the common options for young adults:

1. Staying on a Parent’s Plan

Thanks to the ACA, young adults can stay on their parents’ health insurance plan until they turn 26. This option provides a cushion of time as you transition into full independence.

Whether you’re finishing school, starting a new job, or exploring your options, staying on your parent’s plan offers continuity and peace of mind.

2. ACA Marketplace Plans

Turning 26 is a milestone that often comes with the responsibility of finding your own health insurance. The ACA Marketplace offers a range of plans that cover essential benefits, including care for pre-existing conditions, prescription drugs, and mental health services.

These plans come in various levels, so you can choose one that fits your healthcare needs and budget.

3. Employer-Based Plans

If you’re employed, employer-based health insurance is often one of the best options available. These plans typically offer comprehensive coverage at a lower cost than individual plans, thanks to employer contributions.

Enrollment periods usually occur when you’re hired, but there may be special enrollment periods based on life events like turning 26.

4. Short-Term Insurance Plans

Short-term health insurance plans are designed to bridge the gap when you’re between coverage options, such as transitioning from a parent’s plan or waiting for new coverage to begin.

However, these plans generally offer less comprehensive coverage and may not include essential benefits like preventive care or coverage for pre-existing conditions. They’re a temporary solution, not a long-term strategy.

Frequently Asked Questions

How to transfer health insurance to another state?

Moving to another state requires updating your health insurance to ensure continuous coverage.

If you have an ACA Marketplace plan, update your application with your new address and explore new plans available in your new state. For employer-based plans, contact your HR department to understand how your coverage might change and what steps to take.

What does PPO mean in health insurance?

PPO stands for Preferred Provider Organization. This type of plan offers flexibility, allowing you to see any doctor or specialist without a referral.

PPO plans have a network of preferred providers, and you pay less when using these providers. You can also see out-of-network providers, though at a higher cost.

What does EPO mean in health insurance?

EPO stands for Exclusive Provider Organization. EPO plans require you to use the healthcare providers within their network, except in emergencies.

Unlike PPOs, EPOs do not cover out-of-network care, but they typically have lower premiums compared to PPO plans, offering a more cost-effective option if you’re comfortable staying within the network.

How long does health insurance last after termination?

Health insurance coverage generally continues until the end of the month in which you were terminated.

After that, you may be eligible for COBRA, which allows you to continue your current health insurance plan for a limited time (usually 18 to 36 months) by paying the full premium yourself.

COBRA can be expensive, but it ensures that you don’t experience a gap in coverage while you transition to a new plan.