How's, it going everybody? This is beat the bush. Today. I'm, going to talk about what to do about your health insurance. When you quit your job, health insurance is probably one of the main reasons why people stay at their current job and stay in the rat race.
It's kind of crazy right. They dangle something in front of you, some benefit and you're staying there. Just because of this benefit, shouldn't, you be staying there because you like the job or maybe because they pay too well, at least not because of health insurance.
Before I begin don't forget to give me a like on this video I've heard so many comments from people that are over 50. They are staying at their current job just for health insurance because if they quit their job every single month, the premiums might be like a thousand dollars.
The fact is, in the united states, health insurance, it's, insanely expensive, and I do not think this is sustainable. Probably I will move out of the country because of health insurance because it costs way too much.
I personally quit my engineering job three years ago. I knew this was gonna, be a huge expense, but I think of it like this. It's sort of like self-employment tax. It's kind of like a badge of honor, where, if you pay this, you are kind of in the club.
You have to pay this to be in the club in the self-employment club in the fire club, financially independent retired early club, or in the YouTuber club, even because this is just something you have to pay outright out of your own pocket back when I was working At an engineering job, there are a lot of perks that keeps you from leaving.
Maybe you get free food? Maybe you enjoy all your co-workers. This is definitely a point of contention and for this video, you have the point of having health insurance or not, but the truth is, as you'll see in this video, depending on how much you make you may pay significantly less than what I Pay, even this video is sponsored by Weebly.
This is a free app. You can just sign up for this deposit, a hundred dollars of your own money. This is still gonna, be your own money and you can get two free shares of stock value between eight and sixteen hundred dollars.
This promotion lasts all the way up until the end of this month. So get your two free shares before they change this promotion. Again now I'm in California, and there's, a site called covered. California, you can go on this to check out how much your insurance is going to cost.
If you quit your job, the website is covered ca.com and once you get on this page, you can go down a little bit and you & # 39. Ll see our coverage options over here and you can do anything like bronze coverage, silver coverage, or gold coverage.
The more you pay for your insurance plan, the more the insurance is going to cover you, you can see it says: bronze is 60 coverage and silver shows the coverage of 70 to 94, depending on what kind of services that you're getting and All the way up until the gold coverage, where you can get 80 covers, generally, you probably want better coverage.
The older you are so that you, don't have to pay as much. However, the premiums are gonna be drastically higher. If you go from bronze to silver to gold, just to give you an idea of how much you have to pay, if you earn less than forty thousand dollars per year, you're, likely going to get more and more subsidies from the government.
However, in my case, I definitely make more than forty thousand dollars, even though I quit my job, I still make a bunch of money from youtube, so I still have to pay full price for health insurance. So if you want to find out how much it costs you go on the top over here, it says shop and compare on the top right coverage year.
Okay, we're, going to check out 2021. We're gonna put in a zip code of nine four five six zero. This is where my mailbox is the household income per year. Let's. Just go with one hundred thousand dollars because usually people engineers in California, you generally make around this much, and then you have to say how many people in your household let's.
Just go with one, because over here I'm. Only one I'm 40., so I'm going to plug in 40 and then you're, going to see how much it actually gonna cost me. If I go down a little bit, you can preview plans.
This is what you want to do before you actually go around buying any plans. You don't really need to put in a doctor or anything just go next. You just kind of tell them roughly how much you're gonna use it so that they can give you the lowest price.
Based on your usage condition, I use it very, very low. I hardly ever go to the doctor every single time. I go they go. You are healthy. Don't come back, we don't want to see you. This is how it always goes.
All the metrics look perfect. So you know I'm. I'm, really healthy, low use two to three prescriptions. I actually take zero prescriptions, and these days I don't even take ibuprofen because it screws up your stomach lining anyway.
You click in through here and you go to cover California, and it shows you all these plans and right then, and there you can see. Oh, my gosh bronze, 60 HMO is 402. This is a monthly premium. So right off the bat, you're.
Looking at four thousand eight hundred dollars uh worth of premiums and if you go to bronze 60 HD hp, which is a really good thing because I have a high deductible health plan so that you can get your is a.
You can load a couple of thousand dollars into your head. Every single year this is before tax and when you spend it, you're, not taxed on it either, and if you invest it, you're, also not taxed on it. So it's, a triple zero tax benefit and I try to max it out every single year, especially getting the HD hp plan.
I personally pay 363 dollars and 57 cents every single month, even though I have the bronze 60 HD hp HMO. This is likely because I already have this health plan. They want to lock you in so don't. You don't, always cancel it and then come back.
It's, going to cost you more. If you come back without having an existing health plan, so if you have nothing, to begin with - and you just jump into this - it's, going to cost you a little bit more bronze is actually not really good coverage, as you saw before You only get percent, so let's say you walk in.
You have some emergency of some kind and let's say it's ten thousand dollars. Well, they're only going to cover sixty percent of this. Then I still have to pay four thousand dollars and you also have to pay um the deductible first before this kicks in the deductible.
As you can see, wow it's. Really high seven thousand dollars, and by now you might go wow. Health insurance is really really costly. The thing is: when you are working for an employer, they are essentially paying roughly about the same amount.
They might get a volume discount because they're covering hundreds of employees. This is the cost of going solo. This is the cost of being free. How much is being free worth it to you, and I would have to tell you guys three?
Four thousand dollars per year it's. It's completely worth it to be free from your nagging boss every single day - and I mean I'm - willingly paying this to not listen to that. To not have an alarm wake me up every single day and drag me into a car, and I have to sit in the car for a good 30 minutes for no reason whatsoever, and I have to repeat this: every single day gets really really old, really fast.
These days is actually a little bit better because you don't have to commute, but it's, offset by the fact that your employer knows that you're, not commuting as much so then they ping you a lot More online anyway, so, even though you're at home, it feels even worse than going into work anyway.
Let me proceed with this health plan thing. You can get better and better plans. I have it with the kaiser. You can get it with blue California and then if you jump up to this silver plant, it costs even more as expected, 497 dollars a month 500 a month.
It's, nothing to sneeze at right. It's, it's quite expensive and then you go gold, hmo 550 dollars. So even at 40, you can pay 580 dollars yeah. I can pay another 100 200 for my health plan, but at the time I actually don't need it very much.
If I picked gold three years ago, I would have been paying five thousand six thousand dollars for three years. So you know save me a couple of thousand dollars because I know you know at least I'm relatively healthy.
I don't need to go to the doctors that much so let's. Look at the next page. What the heck is this blue, California, platinum 90., so they cover 90 of your expenses. If you go in, this is really really good.
I might need to get this eventually, but at a thousand dollars this is pretty hefty. Just in premiums, you're going to pay 12 000, so you better know that you're going to spend 12 000 anyway every single year.
This is not a game of trying to max out how much benefit you get from the hospital you definitely don't want to spend as much as possible at the hospital, because you don't want that surgery stuff it's just trying to keep you alive.
You don't want to do any medical thing in California because it costs so much. The health insurance is just really really screwed up over here everything costs multiple times of what it costs in other countries.
So realistically, it might be better for me, as a fired person, to have an alternative plan to go somewhere else where coverage is essentially free. I know in hong kong probably is very good medical coverage over there and the citizens.
Don't have to pay that much now let's. Talk about cobra when you quit your job. They're gonna. Send you an offer to sign up for cobra, which is essentially a continuation of your health insurance with your current employer.
However, when I looked at it, the cost of it was immense. It was actually more expensive than me going to covered California and buying it outright myself. So what I personally did is, I just ignored the cobra stuff and I just signed on directly with kaiser themselves and paid a little bit less.
So when you quit your job, you're, not going to have any income. This is not what I recommend to do, because if you quit your job, you still have to pay all these health insurance costs. Otherwise, you might be so broke that you probably will forgo health insurance, because I know some people that do this.
They don't have a job and they can't afford health insurance, so they just basically have zero health insurance. This is probably a very dangerous thing to do, because, if anything happens to you, it could very well bankrupt.
You just wipe out all your savings in one go, so it's important to have the insurance, even though it's. Insanely expensive in the united states here's. What i see going forward with this health insurance for myself, when I first got it the first year it cost me 300 and I cringed at that.
I'm like oh, my gosh. You add this: all up is 3600. Every year yeah, the first year I paid this much you can't even use your hsa money to pay this, so it basically was me paying this out of pocket. Luckily I can deduct this because I'm, a self-employed person, so you know in reality it doesn't cost as much as 3 600, because there's, some tax deduction.
Here, one year later, it went up about 30 dollars, so it went from 300 to 330... This year is 360... I anticipate the next cycle over. I probably gonna pay another 30. This is unsustainable. I think, by the time it gets to 500.
It's, gonna be too expensive, and my plan is not to pay this of course, either this or I need to get off my butt and work harder and amass a lot of money so that health insurance does not become a significant part Of my expenditure, I spent about fifteen hundred dollars a month, so four hundred dollars worth of health insurance a premium.
It's, a huge chunk of my expenditure - and this is the cost of doing business. The cost of going self-employed. The cost of quitting your job and going on your own thanks for watching this video. I hope this video helps you guys out don't forget to give me a like comment down below.
Let me know if you're thinking about quitting your job and if health insurance is one of the main things keeping you from quitting your job and as always, push that subscribe button and ring that bell.