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Health Insurance can feel like trying to piece together one big puzzle that doesn’t come together strictly upon first impressions, especially for Gen Z, who are navigating it all for the first time. With there being so much misinformation out there, it’s important to separate the facts from the myths. So, let’s clear up some confusion by debunking common myths Gen Z has about health insurance basic so you can make informed decisions about your long-term health and future plans.
Health Insurance Myths
- “Health Insurance Is Only for Sick People”
Health Insurance isn’t just for those who are already dealing with an illness, but it’s also for emergencies and preventive care including annual check-ups, vaccinations, and screenings. Preventive care is often included in ACA-compliant plans, which allows Gen Z access to wider resources as well, including mental health support. Preventive care is important, as it helps you stay healthy through the expected and unexpected circumstances. Skipping insurance can lead to stressful out-of-pocket payments for unexpected accidents or illnesses, therefore making it an essential in protecting the health of young adults everywhere.
2. “I Don’t Need Insurance Because I’m Young and Healthy”
Although young adult professionals may feel as though health insurance is not a necessity at their age, it’s important to be prepared for unexpected medical expenses, like injuries or sudden illnesses. For example, the Health Care Cost Institute found that the typical ER visit in the United States costs about $2,200, not including any additional procedures. Costs can definitely vary, and a “simple” visit to the hospital involving chest pain and scans can cost anywhere between $3,500-$5,000. This being said, those without health insurance are forced to pay the hospitals full rate, with one visit having the potential to cost over $10,000. Even young and healthy adults can be faced with health challenges, and it’s important to understand that no one is invincible.
3. “Health Insurance Is Too Expensive For Me”
Health insurance is often far more affordable than many people think thanks to subsidies, employer-sponsored plans, and ACA marketplace options. Premium tax credits and cost sharing reductions can drop marketplace plan costs to under $50 a month, or even free, with the help of income-based subsidies. Employer-sponsored plans are helpfully funded as well, with most companies covering 70-80% of premiums and offering tax breaks. For some Gen Z who may not have employer coverage yet, ACA marketplaces can cap costs depending on income and provide plan options for all budgets. Therefore, many young employees pay significantly less for health insurance than what is seemingly the non-negotiable market price. This being said, don’t hesitate to explore these options and compare plans to find one that best suits your budget and lifestyle; there is something out there for everyone.
4. “I’m Covered Under My Parents’ Plan, So I Don’t Need to Worry About It”
While staying on a parents’ plan is still an option, it’s important to understand how this coverage works, and the out-of-network limitations that correspond with it. Many employer or family plans have provider networks tied to where one’s parent’s live, so care received elsewhere (different state or region) can and will be billed at a much higher rate or not covered at all. To avoid these higher rates and expenses, it’s important to acknowledge when it may be time to transition to your own plan. For more reasons than one, transitioning to your own plan can be extremely beneficial in preparing young adult employees for a better future and career, as well as building tactful independence. Taking this initiative will set up Gen Z for the long-term greatness and success they strive for.
5. “All Health Insurance Plans Are the Same”
Although health insurance is presented as a holistic concept, there are a surplus of plans and networks out there that provide versatile options for everyone. HMO’s (Health Maintenance Organization’s) typically are cheaper but more limited, as care is only covered in-network. PPO’s (Preferred Provider Organization’s) are more flexible, as you can see out-of-network doctors without needing a referral. This being said, PPO’s do cost more than HMO’s. With still many other plans to choose from, it is equally important to understand key terms within health insurance plans like “network”, “deductible”, and “co-pay”. Networks are the list of doctors and hospitals a plan works with, a deductible is the amount you pay out-of-pocket each year before insurance kicks in and starts covering your planned services, and co-pays are fixed amounts of money paid at a certain time of care like a doctor’s appointment or physical. Once these terms and plans become digestible, it’s a lot easier to find the coverage plan that is best suitable for you.
6. “Health Insurance Doesn’t Cover Mental Health or Preventive Care”
Recognizing the importance of mental health and preventive care in Gen Z lifestyles, employers can offer benefits and resources that support serious circumstances like these. Thankfully, mental health and preventive care are included in ACA-compliant plans, relieving many concerns that Gen Z may have about health insurance. This means services like counseling, therapy, annual checkups, screenings, and vaccines are either fully covered through ACA-compliant plans or require just minimal cost-sharing. The inclusivity of these services in ACA-compliant plans allows Gen Z employees to continue prioritizing their mental health needs and potential health issues, while also taking those next steps towards obtaining coverage.
7. “It’s Too Complicated to Figure Out How Health Insurance Works”
It is completely understandable to be overwhelmed and confused by the nuances of health insurance, and this is why it’s valuable to know just how many resources are out there, available, and ready to be accessed by young adult employees who are trying to clear up any of their warranted confusion. These resources include blogs, brokers, customer service reps, and more, that are all extremely helpful in breaking down the health insurance realm. Choosing and using a plan can actually be done in just a few simple, straight-forward steps:
- List your needs
- Find your plan
- Pick a plan type
- Check networks and prescriptions
- Compare total costs
- Look for fit
- Enroll on time
- Activate plan
- Know where to go
- Mind the rules/get referrals
- Track spending/check bills
- Use your perks and benefits!
Health insurance doesn’t have to be as overwhelming as it seems. By simply understanding these basics and educating yourself through reliable resources like this one, you can grasp the facts, be rid of the myths, and take control of your health and future. Don’t be scared to take the next steps, even if it’s just researching the fundamentals, speaking with an employer, or exploring marketplace options.
If this guide helped clear things up for you, share it with family or friends who might also be confused about health insurance, or unsure what the next steps towards receiving coverage are. Remember, there are an unlimited number of additional resources available to help compare plans and make informed decisions. Everyone, including Gen Z, deserves to feel confident and secure in their plan!
