An Accident Waiting To Happen
Despite their own beliefs, young adults are NOT invincible. They MUST have medical insurance. They often don’t, and their parents don’t always know about it.
A few weeks ago I got a call from one of my 23 year old daughter’s friends, asking me for some financial advice. She had just quit her job and was planning to move across the country. I asked her if she had medical insurance, as her employer-paid coverage had ended. “Well, Mr. Janken, I made sure to get my annual physical before I left my job, I’m really healthy, so I don’t think I’ll need it for a while.” Trying hard not to hit the roof, I explained that she was putting herself at great risk, and that if she couldn’t afford the coverage herself, to ask her parents if they would help.
Unfortunately, this is not the first time I’ve heard a similar story. A few years back one of my client’s sons was going without medical insurance. “I don’t need it. It’s really expensive,” he said. Upon learning of this, his dad immediately went out and bought him a policy, because, in fact, it’s insurance for the parents.
Look what happened to Los Angeles Times columnist Steve Lopez, as reported in his May 17, 2009 column:
My son, 29, was mugged and seriously injured in Philadelphia. He was rushed to the emergency room, where doctors referred him to another hospital for reconstructive face surgery. That hospital, Temple University, turned him away. My son just completed graduate school, hasn't found work yet and has no health insurance. Sorry, the hospital said, according to my son. No insurance, no treatment. Another hospital, at the University of Pennsylvania, was more accommodating. My son was told he could apply for medical assistance and a program for crime victims, but the processing could take forever. I checked with my doctor in Los Angeles, Paul Toffel, who said that if my son's bones weren't reset within two weeks, he could suffer permanent damage. Toffel called a colleague in Philadelphia at the same time I was e-mailing my son's doctor, saying I would pay for the surgery upfront if necessary while the claims were considered. The surgery was performed, my son is recovering and no bills have arrived.
Some parents feel the risk of being uninsured over a short time period is an acceptable risk. I disagree. What happened to Steve Lopez (or worse) can happen to anyone, but not everyone will have the financial resources to personally cover tens of thousands of dollars in costs in order to make certain their son or daughter receives care. Not to mention the possibility of an injury or illness making the child permanently uninsurable. It does not have to be an expensive policy. It need only be a high deductible, catastrophe insurance policy.
If you know a young adult, or the parents of a young adult, ask them if they have medical insurance. It’s a topic they may not have even thought to discuss between themselves. Give them the chance to make a decision before the accident happens. Send them a copy of this letter. Our office can give them a referral to a good medical insurance specialist.
Sincerely,
Glen Janken, CFP, CLU |
