Understanding how our attitudes drive our spending is foundational to our spending
decisions and how we handle risks. In our lives we are surrounded by a minefield of
risks---according to Webster’s Dictionary risk is exposure to loss, harm or danger.
We know that people manage risk in five different ways.
- HOPE for the BEST or DO NOTHING-- deciding, consciously or by default to take no action
and to deal simply deal with life’s risks as they come our way. Often the cost of
insurance is the obstacle to managing risk. This strategy tends has us navigating
a financial rock slide hoping for the best-- thus people who can least pay for a loss
find themselves without coverage when the inevitable rock slide happens.
- RISK AVOIDANCE - Today our elected and public officials are doing their best to enable
we the citizens to avoid covid19. Most of us are choosing the RISK AVOIDANCE strategy
as we stay at home, homeschool our kids, put on our masks, gloves when we leave the
house and engage in the hand washing routine.
- RISK REDUCTION- Instead of avoiding an activity altogether, you take measures to reduce
a loss, should one occur. We wear our seatbelts. In ag country we see farmers and
ranchers moving equipment on our roadways, lights flashing, with slow moving vehicle
signs and flags on display to aid the tractor or animals moving from field to field
safely. Yesterday I learned that a family friend and his brother who were moving a
tractor from one field to another— were plowed into by a semi—their risk avoidance
didn’t prevent both of their vehicles from being involved in a deadly accident.
- RISK ACCEPTANCE Intentionally accepting small financial losses that you can afford
to pay-out-of-pocket if needed. Generally, this is done to keep the cost of our policy
affordable. Three common examples are the deductible (i.e. $500) for comprehensive
and collision auto coverage, dropping collision coverage on an older car, and the
copayment (i.e. 20% for medical expenses and doctor’s bills.
- RISK TRANSFER -transferring the risk to a third party (insurance company) in exchange
for a specified payment (premium). Insurance coverage is especially recommended for
potentially large losses such as disability and liability.
With the COVID-19 pandemic it’s more important than ever to have some level of health coverage. Thankfully,
due to recently-passed legislation, testing for the virus is now free for all Americans, with or without insurance.
But, the cost and coverage of treatment for COVID-19 is a different story.
If you end up needing hospital care and are uninsured, you could be responsible for
an enormous bill. To estimate COVID-19 treatment costs, a study by Kaiser Family Foundation (KFF) looked at hospital stays for pneumonia. Researchers
found that the average total cost for one stay was around $10,000 for patients who
had no complications. That amount jumped to $20,000 for patients who experienced major
complications.
Knowledge is power…and as dire as things are financially for those caught up in this
pandemic. There are health insurance options to be aware of…
- COBRA
If you don't already know, check with your employer to be sure that you know the date
of your last day of insurance coverage. You can keep your coverage for as long as
18 months under the federal law known as the CONSOLIDATED OMNIBUS BUDGET RECONCILIATION
ACT (COBRA) But only if you are willing to pay as much as the total amount of your
premium(monthly fee) ---both what you normally pay and what your employer had contributed
to your premium.
- SPOUSE'S POLICY
If your spouse has health insurance, you may be able to be added to your spouse’s
healthcare plan coverage. Have your spouse talk with their human resources department
to ask what options are available. The cost of that coverage will come out of our
spouse's paycheck so before you make the decision, you may want to comparison shop.
- MARKETPLACE
The Affordable Care Act introduced an online health insurance Marketplace these State
health insurance exchanges are where you can directly buy family and individual health
insurance plans. There is an annual enrollment period which has passed, however, If
you experience a qualifying life event, such as losing employer-sponsored health insurance or student health insurance,
you can shop for health plans through your state’s insurance marketplace. You have
30 to 60 days to sign up after a qualifying life event before the special enrollment
period closes.
- STATE Programs
The Wyoming Department of Health offers insurance coverage for qualifying low income
and medically needy individuals and families. The department offers an online tutorial
to help you determine your eligibility to assistance programs available under Medicaid
or Kid Care CHIP. Wyoming provides assistance to eligible women during pregnancy to
provide a safe and healthy experience for the mother and giving the baby the best
possible beginning to life. Check out their programs at the WYOMING DEPT of Health
web site or call the dept of health.
If paying for health insurance is simply not an option for you currently, consider
these options to lower the cost of healthcare:
COMMUNITY RESOURCES If you have to receive emergency care and you don’t have health
insurance, remember that some hospitals do have charity care programs for those that
can’t afford the cost of treatment.
- Shop around: The cost of services can vary from one doctors’ office to the next. If the care you
need is not urgent, ask your healthcare provider what the anticipated cost is before
you schedule an appointment. Ask if the cost is the same for all members of the practice.
For example, the charge for a physical performed by a physician may be higher than
if conducted by a nurse practitioner. If you’re open to changing providers, you can
also explore pricing with other practices in your area.
- Ask about payment options: When asking about pricing, ask if the practice offers discounts. Some healthcare
providers will offer a discount when paying in cash and/or paying in full at the time
of service. They may also offer interest-free payment plans if you’re unable to pay
for the healthcare you need.
- Use telemedicine services: Options like the GoodRx Telehealth Marketplace can help set you up with a phone or video visit with a healthcare provider. Depending
on what type of care you’re seeking, these services typically start at $20 — and you
don’t need to have insurance to use them.
- Buy in bulk: If you take medication on a regular basis, check with your pharmacy to see if buying
a 90-day supply is cheaper per dose than refilling every 30 days. Along with saving
your time and gas on a trip to the pharmacy, you may be able to trim the cost of the
medicine.
Unemployment is stressful and can often lead to other health problems in the family.
Consider the consequences of your risk management options are you ponder the five
health insurance options we in Wyoming have available to us.
