Health insurance is on the rise again, with a couple spending around €2,000. A family of four spending close to €4,000 every year on insurance. Whether you are involved in an accident, in need of medical attention, injured playing sports or simply just clumsy.There is no denying the benefit offered by having health insurance. In recent years, with costs running exceedingly high with little to no end in sight. Would it be more effective to have a medical emergency rainy-day fund to cover the cost of a hospital visit?

Currently, approximately 10% of millennials opting out of private health insurance for the public sector. Which in some cases is perfectly acceptable for their age group? Considering most of them don’t smoke and aren’t overly overweight and are somewhat fit and healthy. Then there isn’t entirely a need for insurance.

However, opting out regardless of your age or age bracket comes with its demands. Saving the money, you would have spent on insurance and kept in a medical emergency fund. Would be a great solution to the ever-increasing health insurance policy pricing.

Take an average couples medical expense over the course of a year which might include:

Health Insurance         Health Insurance

The total cost would accumulate to €1,050 which you could claim back 20% through your Med 1 form, which would leave the total spend to be €840.

Imagine if your other half became sick while in the public system. Apparently, there is now a statutory charge of €75 applied per night on a public bed in a public hospital. If you are unlucky enough to have to stay for more than 20 nights that would be around €750. Although, if you decided to keep your health insurance policy that number would be dramatically decreased. You could benefit from being allowed to recover at home with aid of a nurse which is covered by your plan. Plans cover what is outlined so make sure when you are looking at health insurance policies that you choose the right one for you and not just the cheapest option.

The major disadvantage to being in the public sector is the waiting period. which varies depending on regional support with some patients waiting up to three months for treatment. With even more waiting time to see a consultant. Having private health insurance won’t eliminate the waiting time any quicker but it will give you options.

Although there is an expensive alternative which would require your rainy-day fund to be ready when needed. You could take advantage and go the private route and be willing to save for such things as hip replacements. Which would cost anywhere between €16,000 upwards. God forbid you needed a pace maker which would cost you €30,000. Which for some people could be the start of a lovely pension fund or even a nice second-hand car?

What really puts health insurance in perspective for me is knowing that if your partner or yourself become pregnant. There is peace of mind that knowing when you leave the hospital you don’t have to worry too much about a nasty expensive bill hanging over your head. In the states, where you must pay upwards of €20,000 to have a baby in a hospital which explains why there are so many home births over there than here in Ireland.

Health Insurance plans do take time to distinguish what you need, want and are willing to pay for. So take your time, ask for help if you need it and enjoy the peace of mind that comes with your new health insurance policy.