Posted: 8/9/2008 4:10:26 PM EDT
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If someone was self employed, or happily unemployed where would they look for decent medical coverage with a fair pricetag. I want to pay cash money for medical insurance and want some input from others that may do the same. Any suggestions? |
That's the best plan as long as you are healthy. Sooner or later you will not be healthy. Buying insurance AFTER you have developped a major malfuncton is worthless, because the ONE thing you need coverage for will be excluded. I paid on my policy for fifteen years with little or no benefit to me whatsoever. Over the last two years I have met my deductible by the end of February, and my total out of pocket by June. I would be bankrupt by now without insurance, and I would be getting no healthcare at all. Everybody needs health insurance, and the time to buy it is when you are healthy. |
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The key to getting affordable rates as a self employed person is simple...high deductible, and a policy that is more geared to catastrophic coverage and long term care, leaving you to pay you regular visits and medications. Do it that way, and it is affordable. and it becomes what insurance is supposed to be anyway..something that kicks in when you can't afford, instead of what insurance has become, a nanny-umbrella policy covering everything I also found that doing that I was able to cut the charges for office visits and such by anywhere from 30-50% by walking in and saying "I am going to be paying cash, at time of visit, for all services. Do you have a discount for such" Every single one did. When you pay cash, they don't have to deal with billing the insurance companies and they don't have to wait. N |
Insurance is gambling. Sometimes you win, most of the time, you lose. My parents were self employed and never paid a dime for insurance. They got through five kids with only paying cash for a couple broken bones. Five years before being eligible for medicare, my mom injured her back and needed surgery for a pinched nerve. My dad was able to easily write a check for the $12 grand, but had it been cancer or something requiring long term treatment, it would have wiped out all of their assets and they had a lot to lose. Having a stash of cash for the small stuff and a high deductible plan for the catastrophic stuff would be a good plan for healthy self employed. Work with a long established company with an A or A+ S&P, and AM best financial rating. There are dozens of companies with a myriad of plans, so take your time in researching and it would be wise to find a local knowledgeable broker that deals in several companies to help compare and find something for your needs. My wife currently has frequent medical expenses, I currently have very good insurance through an employer, but I plan to become self employed and the medical issue with my wife will be a big hurdle. |
This is what we did for a few years when I was self employed. We had Blue Cross and essentially used it as catastrophic insurance. Also, be aware that when you're looking you can opt out of pregnancy coverage. That helps a lot if you're covering any woman with her parts still in tact. R. |
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I have been self-employed for over 25 yrs and provided my own medical insurance throughout. I recently switched to Anthem Lumenos. It is catastrophic failure insurance with 100% coverage of regular check-ups, shots (flu, hepatitis, etc.). The idea is to prevent / detect early and cure, instead of waiting until you are really sick and costing the 'the plan' a lot of money. You do not need to setup a HSA to get the insurance. In my case there is zero benifit to an HSA. If you get sick, you will be stuck with that company and plan for life. So buying the cheapest solution may not be in your long term interest. As long as you are in the 'group' they cannot single you out for a rate increase. I have notice what I believe is a pattern developing. The insurance companies will close 'a plan' after 4-5 yrs and all the healthy people leave. Only the sick people are left and the rates skyrocket. This must eventually weed out the sick by economically making insurance unaffordable. Bogus hun.... |
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Paying cash money may be the biggest challenge. You would have to deal with a storefront insurance agency to do that. Then of course, you need insurance the medical facilities will take without a huge hassle and dirty looks. Those two factors rule out cheap. My Blue Cross is not outrageously expensive, but I wouldn't call it cheap. I have it set up on auto-withdraw at the bank so there is no question of it being paid a day late and cancelled. Paying cash, you would have to be very careful about not paying it late, or having the dufus you paid cash to get it recorded properly. |
I'm self employed and I have coverage for my family with Coventry Health Care. I am not sure if you can pay cash or not, I have a draw set up, but I'm sure they would be happy to tell you if you give them a call. |
Also known as the "closed block problem". www.actuary.org/pdf/health/rate_may04.pdf |
+1, look into an HSA plan. You can put aside pre-tax money to pay for health costs, and the account builds up over time. Have a couple of good years and you can build it up large enough to cover the out of pocket expenses on the catastrophic insurance plan that you buy with an HSA. |