In these tough economic times, lots of workers who have been laid off have opted to start their own businesses rather than seek new corporate jobs. While this choice can be enormously satisfying and empowering, it comes with significant disadvantages, and one of them is finding health insurance self employed alternatives.
Some 2.6 million independent workers have individual policies, while 3.5 million get health insurance through their own business group policy, according to the Employee Benefits Research Institute. The following suggestions can help anyone who’s currently self-employed or intends to start a business in the near future identify health insurance options.
Keep Your Current Coverage. In the United States, the simplest way to make sure health insurances continues after leaving an employment situation is to maintain existing coverage. This can be achieved by invoking the health provisions of the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986. According to COBRA, an employee who is laid off or leaves a job for any reason except being fired for incompetence or gross negligence can maintain their existing coverage for up to 18 months. This right is available to employees who work for companies that have 20 or more people.
However, expect to pay lots more for health insurance with COBRA. The Kaiser Family Foundation reports that on average, US employees pay only 28 percent of the total cost of their health insurance. Self-employed workers must pick up whatever portion of the premium was paid by their previous employer.
Married employees have another option, namely getting health insurance through their employed spouse’s company policy. Enrolling in a spouse’s health care plan at the next open enrollment period, which typically occurs annually, will cost a lot less than COBRA and other alternatives.
If a spouse doesn’t have health insurance through their work, it’s necessary to find coverage on your own. There are two ways to approach individual health insurance: engage an insurance agent, or do it yourself. The National Association of Health Underwriters can provide a list of reputable insurance agents in your state, but don’t take the list at face value. Meet with several agents, see how well they work with you, and then compare their plans and prices head-to-head. To go the DIY route, check out Internet websites that will compare health care plans from various insurance companies operating in your state. Once again, look over several companies before deciding.
Whether going it alone or working through an insurance agent, don’t make any deals until you’ve thoroughly investigated the performance of your most likely candidate for health insurance. An insurance company with lousy customer service, even if its prices are the lowest, is no bargain. The state insurance commissioner’s website typically provides information on how many customer complaints an insurance company receives, and what those complaints entailed. If the health insurance company you’re considering has a poor service record, move on to a new candidate.
Finally, don’t forget that even though you work for yourself, you’re not alone in the marketplace when it comes for health insurance self employed alternatives. Entrepreneurs have discovered that by joining forces in associations and organizations, they can offer insurance companies large, ready-made markets that spread the risk. Lowering risk is what lowers premiums when it comes to any kind of insurance, and especially health insurance. People who work alone may want to join the National Association of the Self-Employed. Business owners who have employees may benefit from the National Association of Professional Employer Associations. Either one can provide more information online about their services.
Learn about the benefits have health insurance self employed business owners can qualify for today! When you are looking for an accurate and affordable health insurance quote, you can find it easy and fast!
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