Health insurance for US based full time affiliates
Submitted by johnj on Wed, 05/07/2008 - 18:42.
Health insurance coverage looks like a major obstacle to quitting the day job. How do US based affilitates manage health insurance after they have quit their jobs, if they do not have a working spouse?
Submitted by kuproverto on Wed, 05/07/2008 - 21:26.
You could tell your spouse to continue being employed and thus both benefit from his/her insurance!
Seriously, I would also be interested in any recommendations for medical insurance. It's just another one of those things that have to be taken into consideration when planning when to QYDJ.
Submitted by Jeremy Palmer on Thu, 05/08/2008 - 05:15.
I know there are at least a 1/2 dozen insurance people in the forum. If you're lurking come out of the shadows ;)
I pay an arm and a leg for my insurance, but it's something you can't live without.
You may consider joining a professional trade association or finding an organization that offers group insurance for additional savings.
It's been a long time since I was in the corporate world, but I seem to remember people using CORBA (or COBRA) to bridge the gap. You might want to Google that term and see what you can find out.
Submitted by Shannon (not verified) on Thu, 05/08/2008 - 17:56.
I'm not an insurance agent, but I have been self-employed and employed both several times.
COBRA allows you to continue the health insurance you have at an employer after you leave. Generally, you can continue your insurance for 18 months after leaving your job. However, you have to pay the FULL cost of the insurance plus sometimes a small processing fee. That means you pay your employer's share (if your employer subsidizes your insurance) plus whatever you currently pay. So, if you have a plan that covers a lot, sometimes COBRA will be much more expensive than getting insurance on your own.
However, it's good to keep for a couple of months while you are applying for other insurance, if you have a pre-existing condition and don't want a waiting period to have it covered on your new insurance.
For many self-employeds a high deductible plan with a health savings account can be a great way to save money IF you don't have a lot of need for medical care and want a good plan but don't want to pay high premiums and can afford the deductible if needed.
I have an HSA thru State Farm for my 1 man Sub-S corp. It's with Time Insurance (Assurant) - they change the name about every other year.
You pay about $20/yr to belong to an association of people just like yourself.
Premiums are about $5k/year.
Deductible is about $5k/year. Above that they pay 100%. I figure it would take $10k in expenses to "make money" on the insurance, but I don't need the insurance, I need the write-down.
The write down is the fact that if I offer a doctor or pharmacy CASH RIGHT NOW for a visit or prescription, whatever, the price could be $100. If you have insurance, even though they won't pay because you haven't covered your deductible, you can pay by check or credit card 2 months later and the doctor/pharmacy will accept perhaps $40 because that's the "agreed upon price" with the insurance company.
If Congress really gave a damn about us (sorry), they would fix that in 2 minutes. But they don't. And they won't. And they'll keep getting contributions from large insurance companies to their campaigns.
Submitted by InternetCowgirl on Sat, 05/10/2008 - 20:13.
Yeah, health insurance was THE major obstacle for me in becoming completely self-employed as an affiliate (I live in the U.S.). Like Will, I also pay about 5K/ year with a $5K deductible - and I don't even have kids or a spouse on the policy! Also like Will, I went through Assurant and got a very comprehensive policy. The other major option was Blue Cross/Blue Shield, but I've heard some bad press about them improperly denying claims for some individuals - definitely not a risk I want to take should I need serious health care in the future.
I completely agree that you should use any COBRA provisions you have to their maximum extent. It's good for 18 months, so around month 15 or so, it's a good idea to start shopping around for your own insurance plan.
Other alternatives are if you are a veteran, see what benefits you are entitled to through the Veterans Administration - many benefits are currently being reduced and I think you'll have to be subject to an annual income/net worth review to qualify, but it will be well worth it if you can qualify.
Prescrition Drugs - Walmart carries MANY generic forms of drugs for only $4 a pop. It's amazing how you can get a generic version of a $200 prescription for $4 bucks. Don't know if they will continue to do this forever, but it's worth checking out if you are uninsured or have a high-deductible policy.
And of course, "Plan B": you could always marry (or stay married to) someone who has good health benefits at their job :)
Wishing you the best of luck in your pursuit for health coverage - hope you find something that works for you.
Submitted by GarySteven on Sat, 05/10/2008 - 22:07.
Hello,
I've been self-employed for years and know what you're talking about. I'm presently with Blue Cross/Blue Shield and pay about 3K a year, full coverage..copay..I think its 5k deductible.
If you want to see affiliates at work, fill out an online form and stand away from your telephone, because it will start ringing before your off the web page that you put your phone number on for more info. LOL
Mine got so bad that I started split testing by using false names, it's pretty funny to get a phone call with someone asking to speak to "Gregory Bateson" (he was a famous British anthropologist, social scientist, linguist, and cyberneticist)...this way I could tell what web page had my number.
I learned a lot about the insurance companies and filling out the application forms. Some agents are very helpful while some are trying to get a sale. And like Jeremy said there are probably agents on the forum that could be very helpful.
For example the first place I applied was the local farm bureau since I already had dental with them. In the application process because I stated that I had visited a chiropractor (because they asked) they came back and said they would cover me for everything except anything to do with my spine?????? No thanks I said, even know they were low priced...
The remarkable thing here is this company "acted" like they represented Blue Cross Blue Shield in my state, like they "were" Blue Cross Blue Shield, nothing could be further from the truth. I found this out after I started shopping around online. So even if it looks like you've gotten a quote from a large company, there might be another agent with the same company that can get you in with a policy that you like...you have to shop around...
I have health & dental insurance through my local chamber of commerce - the only reason I joined with them. I pay about $10k / year with little deductibles. With 3 kids, it's worth the peace of mind.
Submitted by Shirlpearl on Mon, 05/19/2008 - 08:40.
I have been self-employed for five years and have medical insurance through Blue Shield. I have a very high deductible plus co-pays. I know a lot of people though who don't have any insurance at all. I have found another affordable alternative/compliment to your traditional expensive health insurance plans. It's a medical service that gives your 24/7 access via phone to board certified physicians who specialize in diagnosing, treating and prescribing over the phone. There's no deductible and no co-pays. The medical plan comes in a package that also includes Life Lock (identity theft prevention) and a debt elimination program. I like it because there's no deductible and no co-pays and it's less than $35 a month. That's less than my co-pay. I won't put my affiliate link here but if anyone is interested just pm me.
What you are talking about is a discount plan. That is NOT insurance. In many cases you can negotiate lower rates with your MD if you tell them you don't have insurance. You are throwing money away as YOU have to pay the bill. If you are in a car wreck and rack up $75,000 in bills your health insurance PAYS the bills after your deductible and co-insurance. A discount plan may or may not discount your $75,000 bill to MD's and hospital to $60,000 but you still have to pay it.
If you cannot qualify due to health conditions, check with the state insurance department for the high risk insurance. They typically cannot turn you down, even if you have asthma, diabetes, cancer, etc.
Just BEWARE of these discount scams. You can get individual health policies with a $5000 deductible for $150-250 a month depending on where you live.
Also, check into getting a Health Reimbursement account if you are incorporated and have over $500 a month in medical bills.
I have a high deductible health plan.. Its still an individual plan.
Group plans (the ones offered by businesses) are cheaper. But you need to be part of a group.
Now the question to insurance whizs out there - how are the 'groups' formed. Can 10 people get together and
form a group ?
Being flippant for a moment...
You could tell your spouse to continue being employed and thus both benefit from his/her insurance!
Seriously, I would also be interested in any recommendations for medical insurance. It's just another one of those things that have to be taken into consideration when planning when to QYDJ.
I know there are at least a
I know there are at least a 1/2 dozen insurance people in the forum. If you're lurking come out of the shadows ;)
I pay an arm and a leg for my insurance, but it's something you can't live without.
You may consider joining a professional trade association or finding an organization that offers group insurance for additional savings.
It's been a long time since I was in the corporate world, but I seem to remember people using CORBA (or COBRA) to bridge the gap. You might want to Google that term and see what you can find out.
Best,
JEremy
COBRA
I'm not an insurance agent, but I have been self-employed and employed both several times.
COBRA allows you to continue the health insurance you have at an employer after you leave. Generally, you can continue your insurance for 18 months after leaving your job. However, you have to pay the FULL cost of the insurance plus sometimes a small processing fee. That means you pay your employer's share (if your employer subsidizes your insurance) plus whatever you currently pay. So, if you have a plan that covers a lot, sometimes COBRA will be much more expensive than getting insurance on your own.
However, it's good to keep for a couple of months while you are applying for other insurance, if you have a pre-existing condition and don't want a waiting period to have it covered on your new insurance.
For many self-employeds a high deductible plan with a health savings account can be a great way to save money IF you don't have a lot of need for medical care and want a good plan but don't want to pay high premiums and can afford the deductible if needed.
There are options
I have an HSA thru State Farm for my 1 man Sub-S corp. It's with Time Insurance (Assurant) - they change the name about every other year.
You pay about $20/yr to belong to an association of people just like yourself.
Premiums are about $5k/year.
Deductible is about $5k/year. Above that they pay 100%. I figure it would take $10k in expenses to "make money" on the insurance, but I don't need the insurance, I need the write-down.
The write down is the fact that if I offer a doctor or pharmacy CASH RIGHT NOW for a visit or prescription, whatever, the price could be $100. If you have insurance, even though they won't pay because you haven't covered your deductible, you can pay by check or credit card 2 months later and the doctor/pharmacy will accept perhaps $40 because that's the "agreed upon price" with the insurance company.
If Congress really gave a damn about us (sorry), they would fix that in 2 minutes. But they don't. And they won't. And they'll keep getting contributions from large insurance companies to their campaigns.
Yeah, health insurance was
Yeah, health insurance was THE major obstacle for me in becoming completely self-employed as an affiliate (I live in the U.S.). Like Will, I also pay about 5K/ year with a $5K deductible - and I don't even have kids or a spouse on the policy! Also like Will, I went through Assurant and got a very comprehensive policy. The other major option was Blue Cross/Blue Shield, but I've heard some bad press about them improperly denying claims for some individuals - definitely not a risk I want to take should I need serious health care in the future.
I completely agree that you should use any COBRA provisions you have to their maximum extent. It's good for 18 months, so around month 15 or so, it's a good idea to start shopping around for your own insurance plan.
Other alternatives are if you are a veteran, see what benefits you are entitled to through the Veterans Administration - many benefits are currently being reduced and I think you'll have to be subject to an annual income/net worth review to qualify, but it will be well worth it if you can qualify.
Prescrition Drugs - Walmart carries MANY generic forms of drugs for only $4 a pop. It's amazing how you can get a generic version of a $200 prescription for $4 bucks. Don't know if they will continue to do this forever, but it's worth checking out if you are uninsured or have a high-deductible policy.
And of course, "Plan B": you could always marry (or stay married to) someone who has good health benefits at their job :)
Wishing you the best of luck in your pursuit for health coverage - hope you find something that works for you.
I would shop around...
Hello,
I've been self-employed for years and know what you're talking about. I'm presently with Blue Cross/Blue Shield and pay about 3K a year, full coverage..copay..I think its 5k deductible.
If you want to see affiliates at work, fill out an online form and stand away from your telephone, because it will start ringing before your off the web page that you put your phone number on for more info. LOL
Mine got so bad that I started split testing by using false names, it's pretty funny to get a phone call with someone asking to speak to "Gregory Bateson" (he was a famous British anthropologist, social scientist, linguist, and cyberneticist)...this way I could tell what web page had my number.
I learned a lot about the insurance companies and filling out the application forms. Some agents are very helpful while some are trying to get a sale. And like Jeremy said there are probably agents on the forum that could be very helpful.
For example the first place I applied was the local farm bureau since I already had dental with them. In the application process because I stated that I had visited a chiropractor (because they asked) they came back and said they would cover me for everything except anything to do with my spine?????? No thanks I said, even know they were low priced...
The remarkable thing here is this company "acted" like they represented Blue Cross Blue Shield in my state, like they "were" Blue Cross Blue Shield, nothing could be further from the truth. I found this out after I started shopping around online. So even if it looks like you've gotten a quote from a large company, there might be another agent with the same company that can get you in with a policy that you like...you have to shop around...
Gar
Insurance
I have health & dental insurance through my local chamber of commerce - the only reason I joined with them. I pay about $10k / year with little deductibles. With 3 kids, it's worth the peace of mind.
Also consider a Medical Services plan
I have been self-employed for five years and have medical insurance through Blue Shield. I have a very high deductible plus co-pays. I know a lot of people though who don't have any insurance at all. I have found another affordable alternative/compliment to your traditional expensive health insurance plans. It's a medical service that gives your 24/7 access via phone to board certified physicians who specialize in diagnosing, treating and prescribing over the phone. There's no deductible and no co-pays. The medical plan comes in a package that also includes Life Lock (identity theft prevention) and a debt elimination program. I like it because there's no deductible and no co-pays and it's less than $35 a month. That's less than my co-pay. I won't put my affiliate link here but if anyone is interested just pm me.
Shirley "ShirleyPearl" Muhammad
I'm on twitter - http://twitter.com/shirleypearl
Hi Shirley, can you please
Hi Shirley, can you please give me the link? Thanks!
Discount Plans vs. Health Insurance
What you are talking about is a discount plan. That is NOT insurance. In many cases you can negotiate lower rates with your MD if you tell them you don't have insurance. You are throwing money away as YOU have to pay the bill. If you are in a car wreck and rack up $75,000 in bills your health insurance PAYS the bills after your deductible and co-insurance. A discount plan may or may not discount your $75,000 bill to MD's and hospital to $60,000 but you still have to pay it.
If you cannot qualify due to health conditions, check with the state insurance department for the high risk insurance. They typically cannot turn you down, even if you have asthma, diabetes, cancer, etc.
Just BEWARE of these discount scams. You can get individual health policies with a $5000 deductible for $150-250 a month depending on where you live.
Also, check into getting a Health Reimbursement account if you are incorporated and have over $500 a month in medical bills.
Group plans ?
I have a high deductible health plan.. Its still an individual plan.
Group plans (the ones offered by businesses) are cheaper. But you need to be part of a group.
Now the question to insurance whizs out there - how are the 'groups' formed. Can 10 people get together and
form a group ?