Have you been denied insurance?

However, over the past few years with some reforms signed into law, we now have the option of High Deductible Health Plans in conjunction with Health Savings Accounts (HDHP HSA). These are available to both employees with other health insurance benefits available, and to self-employed individuals. The gist is this: a HDHP is a health plan with a very high deductible (from $1100 to $10000 or more) in conjunction with reasonably low monthly premiums. The extremely high deductible means that this type of coverage is designed to handle catastrophic medical coverage – major accidents or illnesses. Everything else you pay out of pocket.

A Health Savings Account is a tax-deferred savings account that can be used to pay for most medical expenses. You can contribute up to a certain cap every year (for families it’s currently $5450) and this rolls over from year to year. Contribution is not required, but it makes a lot of sense since it’s all pre-tax, like an IRA. In addition, depending on the HSA account, you may be able to invest your money into mutual funds, stocks, bonds, CDs, or simply let it sit there accumulating standard interest rates. Most HSA providers will give you a checkbook and debit card so that payment is simple and easy – use your debit card when paying for prescription drugs or a doctor’s visit, and you’re set.

As independent contractors, we do not have the ability to negotiate for better rates or guaranteed coverage unless we’re part of a larger union that has this ability. The Screen Actors Guild has done a remarkable job on this front – actors have pretty comprehensive benefits from what I understand so long as they work a fairly minimal number of jobs during a year. Some professional associations such as ACM also negotiate for coverage on behalf of their members, although usually without the comprehensiveness of an employer provided plan.

So where does that leave us? After leaving a full-time job, independent contractors have the option of applying for COBRA continuation of their existing health insurance coverage. This extends for 18 months after leaving their current company, but they must now pay the entire cost of the premium instead of the subsidized cost. This guarantees coverage for a fixed period of time, which is helpful if you have a chronic or expensive medical condition that would be reason for denial of coverage elsewhere, but you have a fixed period of time and you incur greater monthly costs as a result.

The second option is to pursue some type of coverage on your own via a traditional (HMO/PPO) individual health plan. This is viable, but the cost tends to be exorbitant, the premiums can radically change during the life of your coverage as the insurer continually reassesses your risk, and if you have a pre-existing condition you may be denied or find that the premiums are so high that it is impractical. If you are single and healthy, this type of plan can work, but it is still often very overpriced compared to the benefits you derive

This post applies pretty much to all independent contractors in America, not just those in the game or art industry or film industry. Those of you in countries with socialized medicine can skip this article, or read it and be amused while sadly shaking your head.

I would question that if you asked most independent workers to identify their biggest concerns about their career choice, the top two answers would be some combination of “finding work” and “health insurance“. One of America’s prime problems today is the current system of health care which is flat out broken. But to avoid getting into a political debate, I’ll concentrate on what independent contractors can do about it.

First, some background. Unlike every other industrialized nation in the world, the United States ties employment to health care…. This makes no logical sense, and it is an immense bureaucratic mess that makes changing employment difficult, adds red tape and overhead for employers, and still requires oversight and involvement from the government. Basically when most people get a full-time job “with benefits” they can opt to purchase health insurance through their employer. Their employer may pay a portion of it, and the employee contributes any difference between what their employer is willing to pay compared to the cost of the actual health plan they select. The primary advantange, however, isn’t the cost, it’s that the employer has negotiated a group rate with its insurance providers, which means that A.) employees get health coverage at a significant discount to independent contractors and B.) employees are almost never denied coverage even for chronic pre-existing conditions.

The National Foundation for Credit Counseling (NFCC) sent out a press release that offered some tips for surviving a layoff, should one occur. Some of them were worth mentioning so here you go:

• Take advantage of any health insurance assistance your workplace offers. Many companies provide placement assistance, job retraining and severance packages. Make sure you are aware of all benefits offered.
• Apply for any applicable government benefits. Your HR representative at work will be a good resource.
• Don’t be tempted to live off of your credit cards. Someone with a good line of credit could actually support the family at the current standard of living by using credit, but there’s no guarantee a new position will materialize any time soon. One rule of thumb job counselors use is to expect one month of job search for each $10,000 of annual income you hope to replace. In other words, if you seek a $50,000 salary, it may take you five months to land that job.
• Take a personal inventory. Consider all assets, income and expenses. Hopefully, you will not have to liquidate any assets to survive, but it is good to know what you have to fall back on.
• Drastic times call for drastic measures. Nothing is off-limits. If necessary, consider selling the second car, or any recreational vehicles, real estate holdings, rental properties or jewelry.
• After reviewing income versus debt obligations, if there is not enough money to make ends meet, calculate how much is needed to meet the basic household living expenses. Your goal is to pay everyone, but if you must make a choice, keep your home-life stable by paying your rent or mortgage, utilities, childcare, insurance premiums, health care, food and keeping gas in the car.
• Tracking your spending is always a good idea, but when money is tight, it’s essential. Write down every cent you spend. At the end of 30 days, review where the money went and make conscious decisions on where to cut back. You’ll be amazed by how much you can save and not even feel the pinch.
• Contact your creditors to arrange lower payments. Most major credit card issuers have in-house help programs. Explain your situation and what you’re doing to resolve it. The creditor may be able to temporarily lower your monthly payment and reduce interest.
• Call your mortgage lender or servicer and inform them of your situation. Be prepared to provide them with documentation of the setback, and have a resolution plan in mind. Since the average consumer doesn’t know all of the loan modifications available, it is smart to first sit down with a certified housing counselor and map out a plan. This way, you’ll know that you’ve selected the option that is best suited to your situation.

As you probably know by now, the United States economy is on a downswing. In fact, many industry experts feel as if a recession has already settled in. With that being said, things are not nearly as bad as they could be. The question is: is the economy affecting your ability to buy insurance? For many, this holds true with several types of policies including health, car, life, and many others.

To go along with a suffering economy, the healthcare industry is also in shambles. The cost of care is quickly rising, and the number of companies that are getting rid of group coverage is following suit. When you combine both of these factors, it is easy to see why so many consumers are having a difficult time paying for an individual health insurance policy.

If you feel that your back is up against the wall, it is time to tighten your budget. In other words, you need to do whatever it takes to ensure that you do not have to cut back on the amount of insurance you are buying. Remember, things are going to get better in the long run. If you get rid of important insurance policies you could make things much worse on yourself in the time being. For instance, you may be able to save money by dropping health insurance coverage. But this could turn into a disaster if you get sick, and are in turn stuck with thousands of dollars in medical bills.

Even though it may sound like a good idea to cut back on the insurance that you carry, now is not the time. Just because the economy is going through a rough time does not mean that you should make things worse on yourself. Instead, find ways to keep buying the proper coverage. When things turn around you will be glad that you did.

Have you ever pondered what it would be like if you were to lose your spouse? According to some surveys, many married couples have been thinking about this quite often. They feel, and rightly so, that their death, or the death of their spouse, would be the worst thing that could happen to their family, not only in regards to their mental health, but also in regards to their financial situation.

This is one reason why now may be the best time to re-evaluate your life insurance needs. Life insurance and health insurance rates are the lowest that they have been in a very long time, and many families are discovering that they can easily afford to add on more protection, in the form of more life insurance and health insurance, in order to make their family life more secure. No one likes to think about a future that their spouse is not a part of, but, unfortunately, it is sometimes a reality that many have to face. Being prepared is sometimes the best way to ensure that your family is able to be financially stable should the worst occur.

They say that you can find anything online, but until now, you had to be able to know exactly where to search in order to discover the information that you were looking for. Google, however, has changed all that, making things easy to find simply by logging onto their search engine and typing in a phrase. Always one to expand, Google has now unveiled Google Health, available at www.google.com/health, which is a website that not only allows you to search for health related information, but that will also save all of the information that you put into it, including any medication that you have to take, any medical procedures that you have had, and any allergies or conditions that you need to keep track of.

It is too early yet to say whether Google Health will be a good thing for the health insurance industry, or a bad thing. Many are concerned that health insurance companies will log onto Google Health in order to access a potential client’s medical background, in order to deny them coverage. Others, however, are concerned that Google Health will cause people to believe that they know more than physicians do. Only time will tell if Google Health is beneficial to the health care industry or not.

Many people believe that they understand how health care expenses will impact their lives after they reach retirement age. Often, however, they grossly underestimate what it will cost to see to their health care needs. Mistakenly, the majority of people also believe they will be able to rely on coverage from Medicare, or as part of a retirement package from their employers during their golden years. This, however, is often not the case, as the number of businesses offering retiree’s health insurance is steadily declining while, at the same time, financial pressure on Medicare seems to be increasing.

Recent statistics show that almost half of American workers report total savings and investments (not including their primary residences or any defined benefit plans) of less than $25,000. It is estimated, however, that most retirees will require approximately $225,000 or more to pay for their health care needs, and if these same retirees can not receive coverage from their employers or Medicare, how are they going to be able to pay for their health care needs? Private health insurance is often the best way to ensure that you have coverage after retiring, allowing you to enjoy your golden years in comfort.

Recently in the news, two surveys have taken the insurance world by storm. these surveys claim that the connection between network providers and many insurance health plans is not holding strong. Some executives who responded to the surveys that were given proved that networks are falling apart, by giving three out of five of the nation’s five largest health plans a negative score. Even more of a surprise is that the plans received, on average, a rating of 41%.

64% of the hospital executives who were polled said that United was one of the worst providers, and claimed that it was also the slowest to process and pay claims, while 2% pointed to Aetna, Inc.. The best provider in the study turned out to be Aetna.

As the bridge between health care providers and health plans continues to crumble, things are only going to get more difficult to manage. A free health insurance quote may be the easiest way to ensure that you are able to afford your future health care needs.

The EBRI/Commonwealth Fund Consumerism in Health Care recently unveiled a survey that they had completed, which shows that enrollment in health plans that were driven by consumers, and that had a high deductible, increased a great deal last year. They also found that those who enrolled in these types of plans were usually white, male, and in a fairly high income bracket. Many of these same people, however, were unhappy with their current health care plans, and were often likely to avoid going to the doctors when they needed treatment because they were concerned that they would have to pay a large amount of money.

What, then, does all this mean for people who are searching for health insurance? To begin with, it means that you should do a lot of researching before you select one health insurance provider. There are tons of different providers out there, and now that employers are not giving the same kind of coverage that they were years ago, more people are seeking private health plans. Because of this, more health insurance companies have sprung up, and many of them do not have adequate coverage or decent benefits. The key to finding good health insurance? Research, research, research.