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HSFPP Weekly Update # 158—Postsecondary Education Can Also Meet Your Health Insurance Needs

Message from Bob and Chris: Health insurance is not only good for your financial health; through the use of preventive health care services such as immunizations and preventive screening tests, it is also good for your physical health. Because of the high cost of health care, an increasing percentage of bankruptcy filings is directly related to medical bills. A trip to the emergency room for something as minor as stopping a nosebleed can cost more than $1000! Fortunately, medical insurance will cover most or all of the cost if you have a good policy; if you do not, however, you might have to pay a high percentage of the bill.

You might not realize it, but one of the benefits of postsecondary education is affordable health insurance, as many postsecondary institutions offer student health insurance. Research shows that people who do not have health insurance do not live as long as those who do. Students might want to begin doing something that can increase their lifespan and their quality of life while they are still young.

 

Web Site Pick of the Week / Follow-Up Activity:

http://www.realage.com/

MSNBC’s Web site features a questionnaire that can help you estimate how long you are likely to live. In order to complete the questionnaire, students will need to know information such as their cholesterol level. Because this activity involves private information, it might be best for you to present the Web site as an option for those who want to complete the questionnaire on their own. It is worth emphasizing here that lifestyle choices can greatly affect a person’s health and well-being, in financial terms as well as how they feel.

 

In the New$... Why You Need Health Insurance

We often think of postsecondary education as a way for students to attain useful knowledge and to prepare for a good career; but education beyond high school has further benefits, including affordable health insurance. Most postsecondary institutions offer student health insurance. Without insurance, medical bills can be overwhelming. Many people who do not have health insurance go to emergency rooms (ER) even for routine ailments because they do not have a primary care physician. ERs are usually much more expensive than regular doctor visits; and emergency treatment centers are a better option for the uninsured than hospital emergency rooms.

I’ve had to go to the emergency room twice during my four years at college. Both times, the bill came to more than $1000. My insurance covered most of it. A friend of mine visited the ER for dehydration from the flu, resulting in a doctor’s bill for $703, not including the hospital emergency room bill. The total cost for this could easily go over $1000; and injuries from a car wreck could go much higher. At the University of Kentucky, students only need to take 6 hours (2 classes) at a time in order to be eligible for the student health insurance program. (Student health insurance is not included in the student health fee, which covers basic care at the University Health Service; emergency room visits, hospitalization, and surgery also are not included.)

An article from Bankrate.com describes a woman who had several hours of tests and observation after a car accident. Her medical bills totaled $13,000! Unfortunately, if you cannot pay your medical bills, they will be turned over to a collection agency. This will appear on your credit report and hurt your credit rating, so that, the next time your vehicle insurance is renewed, your premiums will more than likely increase more than they would otherwise. The annual percentage rate (APR) on your credit card will also likely increase. Read the article from Bankrate.com to learn how you can deal with such a situation, in case it happens to you or someone you know.

If you are not sure about continuing your education after high school, enroll in at least one or two classes in order to qualify for health care services and insurance. This might also be a good way to find out if the type of postsecondary education you want to pursue is right for you without paying full tuition.

Source: “Medical bills can make your credit sick,” by Jay MacDonald. Bankrate.com. 9/23/03.
http://www.bankrate.com/brm/news/insurance/wreck-credit1.asp
 

Discussion Questions:

Read the article In the New$... from Update # 91.

1.) Why is it important for you to have your own health insurance when you’re no longer covered by your parents’ health insurance?

 

2.) What should be done about the current situation in which many people cannot afford health insurance?

 

3.) Why is it important that something be done to reduce the numbers of the uninsured, of which young adults make up a significant percentage?

 

Kentucky High School Financial Planning Program

http://www.ca.uky.edu/fcs/hsfp

The purpose of the HSFPP weekly financial updates and Web site is to assist county Extension agents, credit union educators, high school teachers, and parents who home school their teenagers so that they may improve the economic well-being of our teenagers; and also to show educators how the HSFPP and the weekly updates meet Kentucky core concepts. The Web site and weekly updates are provided by the University of Kentucky Cooperative Extension Service, and are free to all educators. The list of core concepts and order form for free program materials including the student guide and instructors manual can be found on the Kentucky HSFPP home page.