[pct-l] Health Insurance

[Vincent Rupp]

Hey Ben,

I used to work in health insurance, so I'll try to take a stab at this.

It sounds like you already have an individual plan, not a group-sponsored
plan, and you're just trying to lower the cost. That means COBRA isn't
applicable and you're probably pretty familiar with your benefits already.
Let's assume you're under 30 with no major health problems. That means you
should be able to get a high deductible plan (roughly $2,000+) for under
$200/month. But that varies wildly based on where you live - some places it
might be $100/month.

That sounds like a lot of money out of pocket, but IF something does happen,
it's possible to get a loan you could pay off over the next five or ten
years, so it's not the end of the world. Just live healthy and try not to
fall off any ladders.

And depending on your tax situation for 2009, you could get a high
deductible HSA-qualified plan and invest in an interest-bearing tax-exempt
account toward the deductible and other non-covered medical expenses. That's
detailed stuff, so you'd have to ask someone more knowledgeable.

But going from a $250 deductible to a $2,000 deductible will save you over
30% on the premium. Other plans that don't have office visit copays (that
is, you pay at deductible/coinsurance so it costs more up front usually) can
also save you money. And on the trail, maybe you don't need a real generous
office visit provision. Maybe you don't need prescription drugs. Maybe you
do. That's up to you. However, in case of the trail crazies, you probably
will want a good mental health provision! =D

There are sites like ehealthinsurance.com that let you get quotes from a
large number of plans in your area just so you get a feel for what's out
there. You'll probably have upwards of 100 options to consider though.

Definitely get a plan with good out-of-network benefits since you'll be
traveling all over three states. With air ambulance benefits.

There are "accident only" plans that are very inexpensive because something
like 80% of medical claim dollars are for illnesses, but I'm not sure if
knee problems from hiking would count as an accident or an illness, for
example. Something to consider though, if you're not worried about getting
sick.

Unfortunately, getting health insurance is a lot of work and can be very
complicated. Plan on spending several hours on it and make sure you read the
provisions VERY carefully (not just the simple so you're absolutely sure you
know what you're getting. And it wouldn't hurt to call the plan directly and
ask about the provisions for extended hiking. In most states, even if they
consider backpacking for five months a sign of mental illness, they can't
deny your application!

And yes, hospitals do give away a lot of care, but they have aggressive
collections policies based on credit scores and average working years
remaining, so if you're fairly young with a good history of employment, they
will come after you. A large unpaid bill sent to collections will screw up
your credit score, so try to avoid being underinsured and be careful of a
"discount" policy that has low coverage limits. A simple appendectomy often
costs more than $20k these days!

Also, some carriers charge less for married couples (statistically, the odds
of both people having large claims are lower), so you could always get
married before heading out. Something to consider!

-Vincent


On Mon, Mar 2, 2009 at 3:20 PM, Ben Hooley <hooleybd at yahoo.com> wrote:

>
> Hello All,
>
> My girlfriend and I will be taking our first stab at the PCT this year and
> will be quitting our jobs in order to do so. I was wondering if anyone had
> any good suggestions for affordable health insurance plans which would only
> be used to cover any unexpected major medical situations? I currently have a
> personal plan in my name that my employer covers, but there is no way I can
> afford to pay it myself while unemployed. I appreciate anyone's thoughts on
> this matter.
>
> Ben
>
>
>
>
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