Group Insurance- Think about the employees

The most difficult thing to hear from clients calling in is that they just had a major medical catastrophe that has left them unable to work. They are calling in because COBRA is way too expensive and they have no clue what to do. I have nothing to do for them except say they must stay with their COBRA and be thankful they have the insurance. The problem I have is that this financial tragedy could have been avoided! The same problem occurs when a person leaves employment and is sick with a terminal illness.

Option 1:
If you are an employee or an employer, always choose the high deductible plan. This may seem difficult to grasp the high deductible, but the premium costs can be manageable. You can get help with the high deductibles by purchasing an accident policy such as Aflac, Colonial, Humana, Anthem Balance, etc. For employers- don't pay 100% of the premium cost! It is awesome that you want to help your employees out and you are concerned that if they are given the choice to pay on their own, they wouldn't get the insurance at all. Maybe give them an incentive that you will increase their pay or something to help them shop for their own coverage, or contribute to an FSA (flex spending account) or HSA (Health Savings Account). This will give them money in the bank and an ability to be prepared for possible medical bills. The reason you don't want to pay too much is because it creates the perfect COBRA storm when that employee leaves employment and is stuck paying 100% of the premium, which they can't.
Employers should also invest in a long term disability policy for their employees. The plans are incredibly cheap as a group. Purchase a plan with at least 5 years of coverage, covering 60% of their salary. By paying less to their health insurance you increased their salaries, and were able to use a small portion to fund the disability insurance. Now when a catastrophe strikes, they not only get the doctors paid, but they too get paid!

Option 2:
Get your own insurance plan while you are healthy. Look into a personal insurance plan with a high deductible. This plan can easily be the last insurance plan you will ever buy. The nice thing about individual plans is they stay with you as long as you pay the premium. If the costs get too high as you age, you can always shop for a new plan (assuming you are still healthy) or even increase the deductible. If a catastrophe strikes, you aren't struck with an unexpected cost COBRA.
Set up a savings account. Take the extra money you would have spent on a plan and put it into your retirement accounts, a Health Savings Account, or a permanent life insurance policy.
Purchase an accident plan as well such as Anthem Balance, Humana, Aflac, or Colonial. Get a long term disability insurance policy of your very own. If you get a disability plan at work, take it and buy a supplemental one for yourself. Individual disability policies are more expensive, but the price is locked in until you reach 65. Get a minimum of 5 years of coverage.

Option 3:
Be insurance poor.
Get the most expensive plan at work. Don't save your money. Purchase all of the supplemental plans you can. When you get disabled, lose your job, or get in a bad situation, you will have to rely upon the government and the insurance companies your entire life.