A question for people who choose to not buy health insurance…

I work in the health insurance industry. I am 32 and I decline the insurance my company offers me. Even though they pay for half, it would cost me about $200 a month in premiums. I'm not rich, I only make 5 figures a year and I got high rent to pay. I've been uninsured for 12 years. During those 12 years I've had 3 medical emergencies. I paid cash up front each time. There is an ER in my city that gives a 50% discount for up-front cash payers. This discount often undercuts the coverage that my would-be insurance policy would provide. The ER offers this discount because cash payers eliminate the need for insurance forms and waiting a long time for reimbursement from the insurer. It costs them so much less to treat a cash payer that the patient would often be better off paying with cash even if he has insurance.

I've been working in the health insurance industry long enough to know that it is basically a scam. Its a lottery. Only a few people make it out ahead. The vast majority of insured people end up being super broke from healthcare costs anyway. If I have a catastrophic accident (like losing both legs or something), well I will rely on help from family, friends, and charity, but in that situation, I think I wouldn't care that much about paying my bills or declaring bankruptcy or anything else in terms of finance.

Insurance companies, in order to exist, MUST take in more money than they pay out in benefits. And they all do precisely that. And I, as a health insurance worker, won't be on the sucker end of that bet.

2 Comments on “A question for people who choose to not buy health insurance…”

InsuranceHack
December 15, 2010

I work in the health insurance industry. I am 32 and I decline the insurance my company offers me. Even though they pay for half, it would cost me about $200 a month in premiums. I'm not rich, I only make 5 figures a year and I got high rent to pay. I've been uninsured for 12 years. During those 12 years I've had 3 medical emergencies. I paid cash up front each time. There is an ER in my city that gives a 50% discount for up-front cash payers. This discount often undercuts the coverage that my would-be insurance policy would provide. The ER offers this discount because cash payers eliminate the need for insurance forms and waiting a long time for reimbursement from the insurer. It costs them so much less to treat a cash payer that the patient would often be better off paying with cash even if he has insurance.

I've been working in the health insurance industry long enough to know that it is basically a scam. Its a lottery. Only a few people make it out ahead. The vast majority of insured people end up being super broke from healthcare costs anyway. If I have a catastrophic accident (like losing both legs or something), well I will rely on help from family, friends, and charity, but in that situation, I think I wouldn't care that much about paying my bills or declaring bankruptcy or anything else in terms of finance.

Insurance companies, in order to exist, MUST take in more money than they pay out in benefits. And they all do precisely that. And I, as a health insurance worker, won't be on the sucker end of that bet.

Edward McCain
December 15, 2010

Why don't I pay for health coverage? Because with a family of 5, I cannot afford to spend $850/month on partial coverage. That's why. Go do some math, then ask yourself "who the heck can afford to pay for 100% coverage and still maintain a decent quality of life?"