Health Insurance 5

[steve1]

How have you self employed engineers dealt with the issue of obtaining health insurance? My COBRA benefits are set to run out at the end of the year and the quotes I've obtained are not very promising.

 

[TheTick]

When necessary (while on contract), I insured my family with major medical, which cost about US$300/month. This covered emergency care and major expenses above some high deductible. Not a bad deal if everyone stays healthy.

 

[steve1]

TheTick,

Good thought. I've looked at comprehensive coverage and received a quote for $1600/month. Not likely that I could afford that. Which health insurance provider did you go with?

 

[TravisMack]

If you are in the US..do a google search on HSAs (health savings accounts). It has very high deductibles for major medical...savings for deductible grows tax free if used for health care..

Works well for healthy individuals..if you have a chronic condition, forget it...

 

[TheTick]

Fortis, by way of my State Farm agent.

 

[tygerdawg]

$1600 seems a little steep.

After being forced into free-lancing, I got hooked up with National Association for the Self Employed

http://www.nase.org

(?) and got their insurance. My wife (and VP of Finance and insurance guru) said was "OK" insurance compared to everything else she could find. It is underwritten by some insurance company. We got standard coverage, no dental, high deductible for ~$630 / month.

The lesson here: set your rates accordingly to accommodate your living costs AND the amount of lag time it will take for someone to pay you what you are owed.

TygerDawg

 

[imagitec]

This is a little off-topic, but it could be useful if you need to elect COBRA some day:

After a qualifying event (usually the loss of your job), the plan adminstrator has fifteen days to send you an election notice. After that, you have 60 days to elect coverage. If you do, you have 45 more days to pay the first premium.

So if you lost your job with health benefits but hope to find another shortly, you can wait until 60 days or until you get hit by a bus, whichever comes first, to elect coverage. If you didn't get hit by a bus, you can wait another 45 days to put your check in the mail. If you find a job before then, simply don't pay the COBRA premium and it will never kick in, nor will you be responsibile for back premiums.

If you do eventually take COBRA, you will have to pay the premium retroactively back to the day of the qualifying event.

I know this thanks to my wife, who works in benefits. This Department of Labor FAQ discusses the election period and other issues:

http://www.dol.gov/ebsa/faqs/faq_consumer_cobra.html

Rob Campbell, PE
Finite Monkeys -

http://www.livejournal.com/users/robcampbell

 

[steve1]

Thanks to TheTick, mfpd, and tygerdawg for their suggestions. There is a lot more to this than I thought.

 

[coloradobridges]

I have used Fortis through State Farm like TheTick - that's about the cheapest I've ever seen.

I now have health insurance through an ASCE plan. It's a decent deal on a good quality PPO if you're a member.

 

[SyncroTec]

After my Cobra ran out at $213/month, I switched to Unicare at $125/month with a $2000 deductable and 4 office visits a year with a $10 copay. It's not available in all states, but here is a link that may help locating affordable insurance.

http://www.ehealthinsurance.com/ehi/index.html

The other alternative is to vote for Kerry.

 

[ProbaSci]

steve1,

First, don't let coverage lapse because getting back into insurance after not having coverage can make the problem exponentially more difficult.

Second, if everyone in your family is health the problem is considerably easier. If anyone has anykind of treatment within the past year, the new company will probably exclude that condition from the policy they offer you.

Third, if there is potential for a pregnancy, be careful as several companies exclude pregnancy in their lower cost offerings.

Fourth, (whew) my accountant tells me that your business can reimburse you for your medical expenses and then premimums become tax deductable for your business.

Someone mentioned NASE and that seems to be a pretty good option, if you don't have to worry about 1-3.

Good luck

 

[hydrae]

Steve1
Have you got a quote from the company you are currently getting Cobra benefits, the company I use offered a plan that continues after the 18 months expire, it had quoted prices for one, two or three or more persons all based upon the age (adjusted every 5 years) of the oldest participant. The cobra was costing $550, my payment is now $680, but the bonus was no pre acceptance health questionaire, (filled out several, denined on pre existing conditions). The price quoted for my wife and I.
Hydrae

 

[ClydeMule]

Hey tygerdawg,

What was your experience getting hooked up with NASE? When I left my company I was trying to go independent of COBRA. I looked into NASE, seemed like good coverage for a good price, but kind of confusing because of all of the optional riders I had to buy (kids, maternity, etc.). The biggest problem my wife and I had was the NASE rep was such a hard sell used car salesman type we got kind of uncomfortable. He want the first month's premium up front the moment we talked to him, and we hadn't been approved yet.

This was in San Diego. Just wanted to see what other experiences people had.

Thanks,

clyde

 

[ProbaSci]

ClydeMule,
I talked with NASE insurance rep in Texas, and was very happy deaing with him. Didn't sign with them because of the rider issues like you mentioned.

 

[greenone]

Have you checked into insurance offered by professional orgs. e.g., ASCE? It wasn't cheap, but letting insurance lapse is suicidal. If you are overweight, or have high cholesterol, or have an existing condition, finding prvate health insurance is quite difficult. Never mind that your doctor does not see you as at risk, if the underwriters do, you will be rejected.

 

[mwest]

After my COBRA expired I converted my plan to a Blue Shield group coverage. I had only one employee at the time and the group plan was actually cheaper than a family plan even though I paid my employee's premium. My employee left and I do not offer health coverage to my current employees. I also had problems with Blue Shield paying claims so I went to the National Association for the Self-Employed (I think that is the correct name - they have been advertising nationwide alot now). For a family of four with medium to low deductables and a few special riders thrown in I pay about $550.00/month - I live in northern California.

Hope this helps.

Doug

 

[carlosgw]

I went through my Chamber of Commerce. The rates were comparable with Benecare (sp?) which is the one other thing I checked into when I needed insurance a few years ago.
Side note - rates have gone up drastically in the last few years (in case you haven't noticed). I change from one Blue Choice plan to another this year with a significant cost savings. When I needed a prescription recently I found out why the rates were so different. The new plan does not cover the cost. I knew this but I did not realize how much the old plan was picking up. I am still coming out ahead but it is an eye opening experience.

 

[bkhinspectionservice]

one thing you might think of is a HSA which is a Health Savings Account. Golden Rule is one of the best in my opinion. They have a higher deductible, but you can write it all off as a biz expense on your taxes. Check in your state how it works. Good luck.