The cost of premiums should not be the only factor you consider when you are looking for self-employed health insurance coverage. Any plan you consider should certainly allow you a choice in doctors and hospitals; networks save you money only when you are at home. If you fall ill while traveling, you could be smacked with a very large doctor's bill. Generally, you should not purchase health insurance unless you are not covered under a health insurance plan elsewhere.
Among your considerations must also be:
* how many people will be covered under the plan
* the ages and other characteristics of those people
* cash flow for deductibles, co-pays, and prescription drugs
* whether or not you have a Health Savings Account (HSA)
* pre-existing conditions or risky behaviors which may lead to increased need for coverage in future years
* your own expectations of health insurance coverage.
How many people will be covered under your self employed health insurance?
Typically, a self-employed person will elect to cover himself or herself, their spouse, and dependant children. Under certain circumstances, domestic partners and stepchildren may be covered, but plans vary so you must ask. A plan that covers one person will have different considerations than one covering family members; in addition, costs, deductibles, and caps will vary.
What are the characteristics of the people covered under the plan?
A young husband and wife will probably rarely visit the doctor, so emergency coverage will be highly important. When kids come along, the doctor will be on speed dial, so low deductiblesand co-pays will be important. Older people may qualify for government benefits such as Medicare, so self-employed health insurance will cover everything else.
How much cash flow do you have for deductibles, co-pays, and prescription drugs?
Self-employed people often suffer from cash flow problems. Not only do you have to pay a monthly premium for insurance, you must have enough money set aside to cover thedeductibles and co-pays which may be required under your health insurance plan. You may elect to get prescription drug coverage for a small monthly fee but if you do not frequently use prescriptions, you may not want this extra coverage. In that case, you will need money for prescription drugs.
Do you have an HSA?
It is a tax benefit to save money in a Health Savings Account. These types of accounts are offered through most credit unions and banks. All money that goes into the account must be withdrawn for medical expenses only, and you must save receipts for tax purposes. An advantage to an HSA is that at tax time, you are allowed to use a portion of your health savings account expenses and additions to offset your income. Contact your bank to find out how to set up an HSA account, and ask about interest rates for the account.
Do you have pre-existing conditions, or do you indulge in risky behavior?
Those with pre-existing conditions will definitely want to shop carefully for self-employed health insurance. Be aware that federal rules are due to change in 2010, so be sure your health insurance provider follows the most recent laws. Waiting periods or complete exclusion for pre-existing conditions is still the norm.
If you are a racecar driver or have a snowboarding hobby, you will need your health insurance to have high lifetime caps and plenty of emergency coverage. Risky hobbies or behaviors may cause you to need your coverage quickly. Be sure to carefully read the plan's rules concerning daily spending limits, types of coverage, co-pays, and so on before signing on the dotted line.
What are your expectations for health insurance coverage?
Everyone has different expectations for their health insurance coverage, and these considerations must balance what is important to you and your family. Are you in need of dental insurance? Dental is often an add-on to health coverage, or you may need to purchase a separate policy. A vision plan may also be important to you. Health insurance will sometimes cover the cost of an examination but not the prescription lenses or eyeglass frames. If you need vision correction, make sure a vision rider is on your policy.
In addition, some people prefer to take charge of their own health and manage just fine without visiting a doctor, except for emergencies. If you are one of those people, your health insurance expectations will be different from someone who visits the doctor frequently for even minor ailments.
Among your considerations must also be:
* how many people will be covered under the plan
* the ages and other characteristics of those people
* cash flow for deductibles, co-pays, and prescription drugs
* whether or not you have a Health Savings Account (HSA)
* pre-existing conditions or risky behaviors which may lead to increased need for coverage in future years
* your own expectations of health insurance coverage.
How many people will be covered under your self employed health insurance?
Typically, a self-employed person will elect to cover himself or herself, their spouse, and dependant children. Under certain circumstances, domestic partners and stepchildren may be covered, but plans vary so you must ask. A plan that covers one person will have different considerations than one covering family members; in addition, costs, deductibles, and caps will vary.
What are the characteristics of the people covered under the plan?
A young husband and wife will probably rarely visit the doctor, so emergency coverage will be highly important. When kids come along, the doctor will be on speed dial, so low deductiblesand co-pays will be important. Older people may qualify for government benefits such as Medicare, so self-employed health insurance will cover everything else.
How much cash flow do you have for deductibles, co-pays, and prescription drugs?
Self-employed people often suffer from cash flow problems. Not only do you have to pay a monthly premium for insurance, you must have enough money set aside to cover thedeductibles and co-pays which may be required under your health insurance plan. You may elect to get prescription drug coverage for a small monthly fee but if you do not frequently use prescriptions, you may not want this extra coverage. In that case, you will need money for prescription drugs.
Do you have an HSA?
It is a tax benefit to save money in a Health Savings Account. These types of accounts are offered through most credit unions and banks. All money that goes into the account must be withdrawn for medical expenses only, and you must save receipts for tax purposes. An advantage to an HSA is that at tax time, you are allowed to use a portion of your health savings account expenses and additions to offset your income. Contact your bank to find out how to set up an HSA account, and ask about interest rates for the account.
Do you have pre-existing conditions, or do you indulge in risky behavior?
Those with pre-existing conditions will definitely want to shop carefully for self-employed health insurance. Be aware that federal rules are due to change in 2010, so be sure your health insurance provider follows the most recent laws. Waiting periods or complete exclusion for pre-existing conditions is still the norm.
If you are a racecar driver or have a snowboarding hobby, you will need your health insurance to have high lifetime caps and plenty of emergency coverage. Risky hobbies or behaviors may cause you to need your coverage quickly. Be sure to carefully read the plan's rules concerning daily spending limits, types of coverage, co-pays, and so on before signing on the dotted line.
What are your expectations for health insurance coverage?
Everyone has different expectations for their health insurance coverage, and these considerations must balance what is important to you and your family. Are you in need of dental insurance? Dental is often an add-on to health coverage, or you may need to purchase a separate policy. A vision plan may also be important to you. Health insurance will sometimes cover the cost of an examination but not the prescription lenses or eyeglass frames. If you need vision correction, make sure a vision rider is on your policy.
In addition, some people prefer to take charge of their own health and manage just fine without visiting a doctor, except for emergencies. If you are one of those people, your health insurance expectations will be different from someone who visits the doctor frequently for even minor ailments.
