Do you have health insurance?

[Waldo]

I have some general questions for fellow fisherman as most of you are great consumers and deal finders.

If/when you have been between jobs, what did you do for health insurance?

If you are self employed, do you buy health insurance?

What insurance companies or type of plans do/did you have?

I'm thinking of starting a business and being self employed and was curious to see how you guys solved the costly scenario of health insurance coverage.

[bigfish1965]

Move to Canada..he he.

[Neal/CO]

I used to be a Insurance agent and specialized in health and life insurance. One of the biggest mistakes self-employed people make is thinking they have to have the same coverage their old employers provided! The plans that cover every little thing (doctor visits, prescriptions, etc) are very expensive for the self employed. You will not get the group rates that big groups recieve. A family of four can easily spent 500-600 a month, sometimes more for these comprehensive plans. I used to suggest that people get a good quality catastropic policy to start off with, especially if they were young! Those cover all your major medical expenses caused by sickness or accidents, but don't pay for the little stuff. If you go with a $1000 to 2500 deductable they are very affordable and they protect you against the big medical expenses that can bankrupt most people. If you owe a hospital two grand they will work with you, not so if it is 200 grand! Most of these policies have from anywhere from 1 million up to 5 million dollars of lifetime coverage per person. Plus these policies can usually be used anywhere and will provide excellent coverage if you or a family member should face a life threatning illness! I used to tell people to pay for all the small stuff and make sure they at least had catastrophic coverage!!! It was amazing how many people told me that that was not good enough for them and chose to be uninsured instead?

Shop major companies and make sure they have at least an A Best rating. Good luck.

[rock2me]

Waldo,

Whatever you do, please make sure you have catastrophic coverage. Remember it is not just for you it is for your whole family. Your Mom, Dad, Spouse, children, etc. are not going to let you die and it could put all of you in the poor house.

I consumed several hundred thousand dollars this year, 2002. I still have at least one more procedure left that will be between $40K and $80K depending on how the surgery and recovery goes. I am a relatively young, 37, and had never been in the hospital or any surgery prior to an extended stay in ICU.

Do not forget looking into short-term and long-term disability options.

[Box]

Neal, you are 100% correct! :)

My wife has worked in medical field for along time, and she did the shooping for me when I went self-employed. It is high deductable, about $2200, but after that they pay everything. Up to $6 million lifetime. You can also hide some income in the medical saving account, I think about $1500 per year. This allows you to use it when you have to pay for the first $2200 in a year. The rates are very reasonable. I suggest this to anybody who is self-employed.

Or for those between jobs, you have Cobra (in MN anyway) but you have to pay the entire amount - this allows you to see how much an employer does help you out with medical coverage. I think you only have 18 months of that though.

One thing you don't want to do, is to let any insurance lapse. Someone could correct me, but it is easier to find/get good insurance while you are already insured.

For what it's worth, I am 35, non smoking, and fat ;) and I pay $270 per quarter. It would be a bit lower if I was about 30 or so pounds lighter.

My wife found a bunch of good, affordable, policies with higher deductables by simply doing some searching on the internet, and then I took these and talked to a broker who helped me put into action. I went with the same coverage he uses.

As a person who watched a young friend go through cancer #####, and also having a friend now who waited longer than he should have to get care, becasue he didnt have coverage at the time, I would strongly urge people, especially with families or kids, to do whatever they can to keep the coverage going.

Anyway, hope some of that info is of some use. Happy Holidays :)

-Box

[eyeauthority]

check into this issue carefully before making any decisions. In many states, if you leave an employer that provides health insurance to join another employer (even if becoming self employed) if you do not provide interim coverage between jobs, you could find it difficult to obtain insurance and especially at the same levels of coverage that you had. By carrying "Cobra" insurance during the break between employers and insurers, you very likely will be able to obtain coverage or join your new insurers plan without any lapses or drop in coverage. You will need to pay for the "cobra" premiums yourself while between jobs and insurers but in my humble opinion it will be worth it.

If the company/employer you are with now has a human resources dept., go talk to them and get the low down first. Or if you don't want to tip your hat that you will be leaving, find another source of advice. But, it is important that you check this closely. Getting out of one insurance plan and into another is getting more difficult these days. This would include car, homeowners, and health. Many companies won't want to pick you up, at least for the same premiums and levels of coverage, especially if you have past/current medical or other issues.

Just do your homework.

[Norm]

Hey Neal and guys, have you tried to buy catastropic coverage lately? At least in my state of Ma. it doesn't seem to be offered anymore. After reading a book that said essentially what you recommended Neal, I tried all around here to get hight deductable ins. I'd be willing to go to 5,000 but every company I called said they didn't offer it anymore, Do you sill have friends in the field? They have any suggestions on a company that still sell it?

[Neal/CO]

I used to hold an appointment with a company called the N.A.S.E. (National Association of the Self Employed) they are still around and this is what they specialize in. There was another company called Washington National also, I think it is still around. Also AAA used to sell these kind of policies also?

Call you state insurance commissioner and ask for a list of companies licensed in your state.

[PTC]

Neal,

Not sure where you live, but in MN Blue Cross Blue Shield will cover just about anybody with a high ~$2500 deductible. In reality it does two things that help you.

1) The amount billed for most services is artificially high. They bill that amount to the insurance company. The insurance company then adjusts it down to the amount they contracted for (the allowable amount). Once they have done this you are responsible for only the amount the insurance company adjusted it down to. (provided the service provider was "in plan"). This can be a pretty significant savings even if you never meet your deductible.

2) If you or a family member ever have or need an expensive procedure, you can get it done without devestating you financially.

If you can't find anything, try calling your State's Insurance Commissioner and they may be able to point you in the right direction.

Good luck

[Animal]

Suggestion: Depending on the type of business you are going to have you will need several types of insurance. I think you can get the best rate for your personal insurance from your commercial agent. If you are looking for a bridge policy BOX has the right idea. High deductible, with the medical savings account. I've found that if you get a good local agent they know the market and will give you the best deals possible. I only deal with a multi-line commercial firm.

Also, watch out for low-ball rates. I've found quotes that seemed too good to be true, and they were. I've talked to several business owners who tried to save some $$$ with the internet companies, but when a claim came along the exceptions started to pop up and they had to deal with the company's call center.

Good luck on your business venture. There is lots of help out there for the new guy if you seek it out.

My Business Formula
Good Product + Marketing + Excellent Service = Profits

[sevenmmm]

I have been a member of N.A.S.E. since 1991 and bought my current Health Insurance Policy through them in 1993.

With a $5000 deductble, no dental, and insuring mine wife and 3 kids, it cost me $7400 this year. My premium increased from $5200 the prior year. And when I called to complain the supervisor told me to expect more increases as the cost of medical proceedures have risen dramatically.

The positive side of this policy, is everyone has to bear the increases equally. If you have any major medical claims they can not single you out for an increase and they can never cancel you.

There is also a component to this policy where a portion of the premium resides in a cash account you can use for any medical treatment. So far my family hasn't bought more medical treatment than the cash in the account. 'Cept one year when the Dentist stole my wallet!

One other point to consider. When asked who my insurer is I always answer I am paying cash. You won't believe how willing they are to negotiate the bill because of the fast cash. After I pay the bill I send it to my insurer and they reimburse me from the cash account.

And when they know you can pay, they really jump up and give you extra attention!

If you want more information call N.A.S.E. at 1-800-232-6273 and they will be happy to discuss this with you. I think there are different rules for each state, so you may get a different offer than I.

For anyone interested to know, my policy in 1993 cost me $3200.

[Sgt. Ski]

Neal,
I live in Colorado and am self-employed. It’s my understanding that during the past few years, Colorado has passed laws requiring that any health insurance policy be very complete. The result is that high deductibles and limited coverages are simply not available here anymore. Of course the very high premiums must reflect the “Cadillac” policies. Gov. Owens has stated that he wants to lower the standards for coverage, making coverage more affordable. I’m not looking for a political debate, but it seems to make sense that a wider variety of insurance products would be a good thing for both employees and employers in Colorado. You obviously have some good experience in this area, and I’d be interested in your opinion.
Sgt. Ski

[Neal/CO]

I have been out of the business for about five years now, so I am not up to speed. I do know the NSAE is still around though! Those policies were never that limited, they just didn't cover things like routine visits, prescriptions, etc. Best thing to do is call a agent and see what is now available?

[skipjackoh]

i've been in the bussiness for 25 yrs and from what i've read
so far,ur getting good advice.
later

[Jim Ordway]

I recently sold my business where I had conventional health plans with United Health Care. For the last three years I wanted to get everyone on a MSA Medical Savings Account. It has a high deductible, but, a reasonble healthy family (person) would be money ahead in the first year or two. Golden rule is one of the better known players in this arena. You must have a bonifide business to qualify for this program. Now that I have sold my business, I have my own consulting corp. that allows me to partake in the MSA. I will save almost twice my deductable vs. paying the cobra payments to maintain my old plan at work.
Good luck,

[MikeMT]

I have been self employed for 20 years and health insurance has been an expensive thorn ever since.My wife and I have searched for any and all solutions,the best one we came up with was to find my wife a job that offered a family health plan,we are currently looking for one that has flex time so she can help out in our business during peak hours.
Good Luck;
Mike

[Gumbo]

I'm self-employed and use IHC, which I think is local to the rocky mountain states. I pay around $400 a month, and it saved me a few years ago. Now I'm uninsurable, so I stick with it. Whatever you do, don't go without it. Life insurance, medical insurance, a retirement fund, and a will are all necessary evils.

[walleyefishboy]

YOU MAY WANT TO CHECK WITH STATE FARM. THEY NOW OFFER WHAT YOU MAY BE LOOKING FOR AT A VERY AFFORDABLE PRICE. IT'S BRAND NEW THIS PAST YEAR. GOOD LUCK.