Why you should always have health insurance coverage: A friend of mine moved from one job to another and didn’t get around to mailing in a check for [http://en.wikipedia.org/wiki/COBRA_(insurance) COBRA] (Consolidated Omnibus Budget Reconciliation Act, although what that has to do with health insurance, I don’t know (sounds like a manufactured acronym, or “manufacronym”, as it were)) insurance form. This allows you to simply pay directly (whatever your previous employer had been paying) to keep the same health insurance you had while at work until some other form of insurance kicks in.
He broke his arm snowboarding, and needed surgery to set and pin the bones. The hospital bill was around $25,000, and he has to pay that out of his own pocket. He can pay the bill over a period of time (several years), but that’s still a sizable chunk of money.
Admittedly, there was a period in between jobs (when I left my job-before-last and went off on my own, actually) that I also did not continue under COBRA and was uninsured for a period, though I made it through just fine (before signing up for a Blue Cross PPO plan at about $60 per month), and there’s no decent safety net, otherwise, for what can end up costing far more than you can afford.
What’s odd: He says COBRA was around $300 a month. That’s strange, considering the cost of my simple Blue Cross plan. (Correct me if I’m mis-remembering the exact figure, but I do know the difference was very large.) Why is it so much? Isn’t this a government program to encourage and facilitate people moving between jobs keeping medical insurance at all times?