Facts About Securing Health Insurance for the Family when Self Employed
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Facts About Securing Health Insurance for the Family when Self Employed

Group health insurance may not be the way to go when you are self employed.

In case you are planning to get self employed and quit your job in the United States, health insurance is a prime concern. Till date, medical coverage maintains the employer group plans as the golf standard. Incase you have that entrepreneurial instinct or are self-employed, you have other options for health insurance.

Benefits

Among the several advantages of having a health insurance is assuring protection to family and oneself from financial crisis and having ready access to medical aid. According to a research by Dr. David Himmelstein and his colleagues in 2009, most of the US bankruptcy stories are a result of medical debt. According to some article in American Journal of Medicine, it is believed that 63 per cent of the bankruptcies are a result of medical debt.

Types

There are numerous varieties of health plans for the self-employed. An health Maintenance Organization (HMO) plan facilitates care form only specific “in-network” doctor’s offices, hospitals and some other facilities. A preferred provider Organization or PPO is somewhat same but much more permissive. You could visit out-of-network or in-network providers. One may have to spend more if they opt for out-of-network. High-deductable health Plans or HDHPs publicize lower premium than the standard ones, but the deductibles are high, which means that one has to pay a lot more before they receive the actual insurance amount.

Cost

For buying your own health insurance, cost is one major issue. As per the information provided by Health Insurance Resource Center, 75-80 per cent of the premium is provided by those employers who provide health coverage. According to the Smart Money magazine, if you are independent, one needs to cough up sufficient dough for something that may be considered as inferior health coverage. The per annum coverage for a family will be $12,300, according to a particular report that was released in October 2009 for America’s Insurance plans by PricewaterhouseCoopers.

Considerations

If you are planning to let go of your employer in the name of self-employment, you can carry on with the health coverage via COBRA, which is the Consolidated Omnibus Budget Reconciliation Act of 1985. According to Health Insurance Resource Center, this allows the former employees to carry on with their employee health benefits, for about 18 months after they leave their job, though they may not receive any portion of the premium. This sort of coverage helps in saving money by helping to buy insurance in the open market. You also get to shop.

Warnings

A serious problem can be posed by “pre-existing conditions” in case one is looking for health plans. As revealed by Smart Money, while the group plans can never exclude you or extract higher rates from you on the basis of your medical history, the private plans, in most of the states, do so. This factor should be considered in case one is planning to quit a job for his own reasons. Robert Bland, Insure.com’s CEO says that, with regard to insurance companies, if your application has something they don’t like, a month’s policy worth $600 could get off for $850.

 

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Comments (1)

Very interesting

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