Self Employed Tips

Self Employed Tips

The online health insurance website eHealthinsurance continues to be one of the best sources for self employed health insurances options in our opinion.

Health Insurance Advice for Individuals Seeking Health Insurance During the Current Recession

10/06/09

Who among us has not been touched by the current economic downturn? Many have been directly affected by a job loss and many more know someone who has been affected.

Just a decade ago, most individuals employed in Corporate America took the employer provided health insurance for granted. It was a given that the employer plan was benefit rich -- doctor visits, prescription cards and optical benefits. You were part of a group or class and enjoyed group benefits. One important group health insurance benefit is the fact that everyone is accepted into the health insurance plan regardless of pre-existing health condition.

Fast forward to 2009 and these same Corporate Employers may be out of business. If they are still in business, it is a given that the health benefits have been reduced or done away with as a cost saving measure. Many companies are now using more part time help, consultants and contractors. The main reason for using this type of employee is because the company is not required to provide health benefits to this class of independent employee.

So what do you do if you are no longer eligible to be in a group plan and must find individual health insurance coverage?

eHealthInsurance - FREE Instant Quotes!

Before going it alone, you should always try to join a class or group. If you can’t join a class, then you get individual coverage.

Many people can get health insurance coverage through a trade union associated with their job skills, a professional organization made up individuals in the same profession or self employed groups. Please do your due diligence when investigating the benefits of joining one of these groups. Many of them have been the subject of class action lawsuits (read scams) over the past few years. Google is your friend when it comes to scam investigations.

If an association health insurance plane is not an option then your first consideration when you are faced with obtaining an individual health insurance policy is "Am I insurable?" It varies state to state but many pre-existing health conditions will preclude you from obtaining an individual health insurance policy. If that is the case, many states operate a health insurance risk pool for the uninsurable.

An individual health insurance policy is a balance between price and acceptable risk. Those who have been self employed for a number of years find they can do without all the bells and whistles on a full featured plan in order to reduce the health insurance premium to an acceptable level.

Many self employed individuals and small business owners find a health savings account (HSA) to be their best option. An HSA combines a high deductible health plan with a savings account that is funded with pre tax dollars.

Find an HSA plan that's right for you.

HSAs typically have no doctor visit co-payment, prescription card or optical benefits. Deductibles will range from $3500 to $10000 but in most cases the deductibles constitute your maximum financial liability. Many HSAs pay 100% of incurred medical expenses once the health insurance deductible is satisfied.

Since the name of the game in insurance is risk, you pay less if you assume more risk. So if you raise the deductible and raise the coinsurance, your monthly premiums will go down. If you lower either, your premiums will go up.

A common strategy for self-employed individuals is to buy higher deductible insurances. The idea is to protect against the catastrophe, not the everyday bumps and bruises. If you have a $5,000 or a $10,000 high deductible health insurance plan, you’re doing just that. People usually save the difference in their emergency fund as a form of self-insurance.