Type of Health Insurance?

Dave explains different types of health insurance to a caller.

QUESTION: Michael doesn’t have health insurance and he wants to know what type of insurance he should get.

ANSWER: The first thing you should do is go to an independent health insurance agent who can shop around for the best deal.  You should get a $1,000 deductible, 80/20 policy – a basic major medical policy – with which most doctor visits and little things are going to be out of pocket.  You’ve got to get some insurance as soon as possible because a major health issue could bankrupt you. 

You also need to check into an HSA.  The deductible is higher, but it allows you to save money – tax-deductible – that can be used for your medical bills to cover the high deductible in case of a medical emergency.  This will reduce your premiums even more.  Where you could probably get a $100 premium with traditional health insurance, with the HSA you could get a $60 premium.