Health Insurance for the Self Employed - Part II
Thank you to all those who sent me questions and comments on my post regarding to private health insurance. I can tell just from your few comments that this is an important topic for many of you. Despite the fact that the United States spends more on health care than any other industrialized nation in the world (and these other countries provide health insurance to all their citizens), still a staggering 47 million Americans are uninsured. A big portion of these uninsured Americans are entrepreneurs or people employed at small companies.
Although the cost of health insurance can be quite high, the good news is is that there are many resources out there that can, at the very least, inform the consumer of the options are out there. Granted, it doesn’t always mean the options are viable ones. The costs can be detrimental to many hardworking families’ budgets. Some of the websites to check out for health insurance comparison shopping - Vimo.com, ehealthinsurance.com, netquote.com, digitalinsurance.com, and 4-health-insurance-rates.com.
Check With Your State
There are many states that offer health insurance programs for home-based businesses. Check your state’s website to consult what type of programs may be available in your state. You can also talk to a broker about insurance policies that are tailored for individuals and small businesses. Heck, you may even find that you can obtain more affordable individual health coverage by joining a trade association or small business organization in your state.
I’m certainly no insurance advisor, so I would recommend that you consult with a professional who can discuss with you what your best options are. On Friday, I’ll discuss some of the many options out there, including information on health savings accounts (HSAs), savings plans that offer an alternate way for consumers to pay for their own health care. I will present as much information as I can on those, as I know they can be a very viable option for self employed individuals. In order to open an HSA however, the individual must be covered by a high deductible health plan, also known as a “catastrophic” health insurance plan.
And as if the costs of health insurance weren’t enough for one to pull his/her hair out, there is also the “pre-existing health conditions” factor. This refers to those who have an illness or condition that may preclude their acceptance by most regular health insurance plans. For those with such conditions, check with your state to see if it offers a guaranteed-issue plan. These plans typically have higher premiums, but will still offer protection against unknown health risks.
Some Important To Do’s When Seeking Out Private Health Insurance
1.) Use a health insurance broker who knows your market well. Not only will brokers have prices for you, but they should also be able to tell you about how a company works and its reputation. Having a hard time finding a broker? Check out the National Association of Health Underwriters, who can put you in touch with member agents in your area.
2.) Comparison shop online. Some websites are listed above.
3.) Check out your state insurance department’s Web site for a list of companies selling individual coverage in your state, as well as for any programs that help out home-based businesses. If you’ve been turned down for coverage in the past because of a pre-existing condition, also be sure to check with your state to see what laws correlate with that.
4.) Check out local associations that may offer group coverage.
Remember, on Friday, I’ll have more information to you on the types of health insurance plans available, as well as some other organizations to check out. Let me know if you have any more questions!
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The only thing I would caution against, is discount programs. While some of them are observed by hospitals, doctors, etc. The real problem with those occurs in emergency situations, i.e. someone calls an ambulance on your behalf and that ambulance takes you to the nearest hospital for treatment, if that hospital doesn’t fall into your network they will not observe your discount program.
If this does end up happening to you however, DO ask if the hospital will give you the standard discount (or adjustment) they would give an insurance company if you pay your bill in full right then after the adjustment (that’s why insurance companies get to do it, prompt payment). If that’s not a possibility, most of them have hardship (charity) applications if they receive state or federal monies and you can usually get a discount if not a full write off of your bill. Worse case scenario they will usually let you set up a payment plan.
Thanks for the awesome, helpful advice, Sabrina!
See the large collection of MedSave.com articles and resources accumulated over more than a decade of helping tens of thousands of self-employed people find high quality affordable health insurance.
Awesome, Kim, thank you for the resource!