Adopt a catastrophic health care strategy

19 Dec

Some folks say health insurance is too expensive. They also neglect proactive care and let small issues degenerate into crises that create ambulance rides and trips to the emergency room. This is the most expensive type of health care and the one that creates astronomical bills. If you think health insurance is too expensive, wait until you see emergency room bills.

In a catastrophic health care strategy, you maintain a higher deductible in exchange for a lower premium. You benefit by paying a lower premium every month. The insurance company benefits by spending less time, energy, and money on your health matters.

I follow this strategy. I am carrying a $3,500 deductible on my health insurance and am paying a lower premium than if I were carrying a lower deductible. If I fall off my bike and break a finger, I would probably pay my medical costs out of pocket. If I fall off my bike because I had a stroke, my medical costs would exceed $3,500 and the insurance would take effect.

You have two options. You can find individual insurance or group insurance. With an individual plan, you pay for insurance for yourself. This works to your benefit if you have a history of low medical costs and few (if any) trips to the emergency room. Insurance companies see you as a good risk and will reward you with lower premiums. The opposite is also true. If you have a history of high medical costs and multiple trips to the emergency room, you become a higher risk. Insurance companies will respond with higher premiums. You may or may not find a plan that works.

You can also buy group insurance. In this case, you would buy insurance for your company, make all your employees part of the plan, and then pay premiums. This may include family members. This works to your benefit if everybody is young and healthy, but the opposite is also true. This may end up being cheaper or more expensive than an individual plan, and it may or may not be an option for your particular circumstances. Federal health insurance policy is subject to change. I am not an insurance agent and this book is not an insurance-buying guide, so check with an insurance agent in your area to see what is available and what works best for you.


Mark Anthony Germanos is the author of two books, Escape the Cubicle: How to leave your corporate or government job for something better and How to Make Computer Systems Work for You. He has faith in a slow but sure Sacramento business revival. Sacramento small business owners are leading the way. His second book, Escape the Cubicle, is for those who want to escape cubicle jobs and become successfully self-employed. Escape the Cubicle answers the questions: "How can I grow my business" and "How do I become my own boss."

Mark is the President of Cameron Park Computer Services. As a business owner and computer networking consultant, he has seen habits that successful Sacramento small business owners embrace. He helps Sacramento small business owners embrace those habits to increase their profits, efficiency and happiness. An advocate of Sacramento business revival, Mark believes everybody should run their lives like a small business, perform SWOT Analyses and use social media campaigns to improve business. He used to say “social media is stupid.” That was until he attended a conference and saw how Sacramento small business owners can use social media campaigns as a valuable tool. Since then, he has earned more than $40,000 in business via social media. His Sacramento small business clients also have five-figure returns. Sacramento small business owners that launch social media campaigns give themselves a comparative advantage over those who lag behind. Mark does not do everything, but his clients do receive great results and participate in the Sacramento business revival when they follow his advice.

Mark moved from Chicago and restarted his business in California with a cell phone and a Honda Civic. An active triathlete, he has a life, a dream wife and a dog. For additional details, visit Twitter: Facebook: LinkedIn:


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