Amina

Referring to my current bill of health as 'accident prone' might just be the understatement of the century.  In the past four years, I’ve racked up health bills for everything from whooping cough, to an obscure ankle rash commonly found in New Zealand (I have never been to New Zealand), to temporary blindness in one of my eyes after foolishly falling asleep in one-day expired contacts (true story).  To put it bluntly, if it exists and is obscure enough to give any local physician, dermatologist, optometrist, rheumatologist or allergist a run for his/her money, I’ve probably had it, caught it, or exhibited similar symptoms.  

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Needless to say, health insurance is pretty much a must when it comes to avoiding massive emergency room and medical specialist bills…oh and compensatory gifts for my assorted caregivers.  

Well, the only thing I hate more than shelling out thousands of dollars I don’t have, is reading the fine print on any and all corporate issued paperwork (yes, I’m that lazy and counterintuitive).  So in hopes of saving at least one recent grad bogged down by health-related paperwork and real world jargon some time and a smidgen of dignity, I’ve written down some of the advice and unfortunate 'learning' experiences I’ve gathered in my two years out of school.

Side Note: I was also one of those kids growing up who feared the social shame of asking 'dumb questions' as a result of my 4th grade math teacher’s 'DQ' wall in the back of her room, so instead of asking my way through this process I simply signed.  For the record, when it’s your money and more importantly your time, there is no such thing as a dumb question.  But because I know that old habits die-hard I’ve tried to include a few answers to my infamous DQ’s below.

1) HMO versus PPO

This is one topic that I spent hours researching my first time before signing up for benefits.  In layman’s terms, an HMO (Health Maintenance Organization) is a limited list of in network doctors pre-selected by your health insurance provider.  A PPO (Preferred Provider Organization) allows you to select doctors outside of your provider’s network.  While the HMO doctors may cost less with your insurance plan, I’d definitely take a look over the in-network doctors before signing on the dotted line.  If you have any kind of specialized needs or have a specific doctor in mind, you’re likely better off with the PPO.  If cost is an issue, HMO may be a better fit for the time being, but understand your constraints before making a final decision.

2) Beware of the 'In-' Flexible Spending Account.

Also known as a Health Spending Account, this beast of nature fooled me once, but most certainly will not full me twice.  Similar to a 401K, the Health Spending Account allows you to deposit pre-tax dollars into an account in order to pay for qualified medical expenses.   Yes, there’s a reason this factor is in bold.  Unfortunately the list of qualified medical expenses tends to be fairly narrow so be absolutely sure to check this list before transferring any money into the account.  It’s a use it or lose it deal!  That’s right, if you do not use this money within the year (sometimes 2) your money disappears.  Instead, see if you qualify for a Health Savings Account.  Same deal, but the money is yours for life…that’s right, you can submit medical invoices at any point for a full cash refund (well, with your hard earned money that is).

3) Always check for coupons!

You’d never buy a dress for full price if you knew the store was having a sale, right?  Then why accept that nonsense when it comes to medicine?  My steepest bill at the pharmacy came to a total of $326.17 for a week’s worth of medicine (I told you my health issues were obscure).  Even worse, I almost paid it.  That is until my rational, levelheaded boyfriend researched the medication online and found a coupon.  The cost of my medication immediately went down to $40.00…do you believe in magic?

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A PPO (Preferred Provider Organization) allows you to select doctors outside of your provider’s network.

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4) What’s a deductible and why is it important?

Ever heard the saying you have to spend money to make money?  The same applies here, well kind of.  In short, you have to pay money now to pay less money down the road.  The deductible is essentially the amount of money you need to put toward medical expenses before your co-pay kicks in (Note that most preventative care services such as annual physicals, well-woman exams, flu shots etc.  are covered entirely by insurance).  While it may not play a huge factor in your smaller medical appointments, in the event of an emergency, it’ll make one hell of a difference. 

In short, life happens.  There are a lot of events you can plan for and others you simply cannot.  And while surely no one likes to imagine the many things that could or could not accrue medical expenses over the course of a year, it’s always better to have it and not need it than to need it and not have it.  So hop on the real world train and get your paperwork done…life awaits.  Just make sure yours is covered!

 

*Please note that this article is simply a starting point for understanding your medical insurance plan.  For any specific questions or inquiries please contact your insurance provider directly.  

Author Bio: Amina is a Chicago-based blogger/writer who works as an advertising strategist in her free time. She graduated from Amherst College in May of 2013 with a degree in American Studies and is still very much in the process of decoding the post grad life on a daily basis. If you like what you’ve read on bSmart Guide, feel free to check out more of her work on her personal blog Yours Exceptionally or for post grad advice on the go, follow her on Twitter @Amina_Taylor.

 

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