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Link Between Health Care and Bankruptcy

It is a given that we all will fall ill from time to time. That is simply a reality of human nature.  The question is how well are we able to go through that “downtime” and come out on the other end of it? For most people this downtime usually means an inability to work or school or otherwise continue to engage in any of our productive activities that would otherwise bring an income. Then there is the other direct cost of falling ill. The medical and other costs we will incur to get better.

For those who are fortunate to have health insurance, they will gladly not need to worry about the costs to be incured to nurture themselves back to health. Those without heath insurance subscription are not so fortunate and often have to shoulder these costs themselves, or otherwise depend on their family to help out.

It is for this exact reason that health insurance, otherwise known as medical aid, is of vital importance. Besides the previously established “fact” that we all fall ill, there is also the other reality that major tragedy can befall us at any point in time. By major tragedy, I am talking about accidents of any kind, natural disasters, being victim of a crime and much more. Sadly any of these incidents will likely take a lot of resources to recover from, especially money. Money a lot of people often don’t have or can’t afford to spend.

Link Between Health Care and Bankruptcy

And those who do indeed end up spending money out of pocket to take care of the tragedy that has befallen them often suffer the consequences later on, perhaps after they have recovered from the incident.

In fact there was a study conducted by Harvard in 2001 that found that almost fifty percent of all bankruptcies was caused by medical problems. Knowing this, is it not rather obvious the role that medical insurance can play in your life and financial well being?

If you agree with the thought that anyone and everyone can fall ill at anytime or that tragedy can befall that person, then surely that must also include you. Are you willing to take the risk and fall into such situation only to not have the funds to get yourself out of it? Because lets face it, medical bills can be insanely high. As a matter of fact, the bill that could easily accrue to a patient from one hospitalization can often very easily outweigh the contribution you would ordinarily pay to a health insurance company for a combined 10 year period. So, you decide what the opportunity cost is of not having health insurance.

Insurance Provided by Employer

On the flip side, consider yourself lucky and be grateful for it, if your employer provides you with a health insurance coverage as part of your employment benefits. In such situations, your employer would usually pay all or part of your insurance premiums. This will usually be a group coverage where all the employees of the company will be under one health plan or scheme.

Besides the regular health insurance or medical aid, several companies provide a “hospitalization plan.” This plan works by providing its members a specified amount of money for each day they are sick and hospitalized, and consequently unable to work and therefore earn an income. These plans are especially beneficial to people who can only earn an income only when they are physically able to work. so this refers to people like part time construction works, domestic works, and other self-employed people who are responsible for earning they daily pay.

A combination of a health insurance which will take care of your medical bills should the need arise, as well as a hospitalization plan which will pay you a specified sum of money into your bank account, cash, for each day that you are in hospital. This no doubt ensures you can have the peace of mind you need to recover from your tragedy or health issue.

 

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