As I continue in the Healthcare section of the How To Live Totally Free plan I stay on the insurance angle. This time I answer the following question: Is private health insurance worth the cost? This usually-expensive option is out of reach for many Americans unless they can qualify for a government subsidy. Even then, do these plans offer good benefits? Let’s review the pros and cons.
Is Private Health Insurance Worth The Cost? Yes, If You Can’t Afford COBRA Coverage
I wrote about the pros and cons of COBRA coverage in a post earlier today. The major downside of that option is the high cost. Thus, many Americans choose not to elect that option and look for an alternative. Private health insurance is usually the alternative they pick.
Although these plans can be expensive too, some companies offer plans that are within the budget of some Americans.
Is Private Health Insurance Worth The Cost? Yes, If You Are Eligible For A Government Subsidy
If you are eligible to purchase a private health insurance policy through the marketplace, and get the government to coverage some or all of the monthly premium, then go for it. You will have to fill out some paperwork and prove your income in some cases, but the savings is worth it.
However, if your income increases during the year while you receive the subsidy you may have to repay it back when you file your taxes next year. That’s the major downside of this option. Plus, you have to jump through the hoops the government sets to get the discount. That can be a pain if you aren’t used to dealing with the government.
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