Health insurance is insurance that pays for medical expenses. It is sometimes used more broadly to include insurance covering disability or long time nursing or custodial care needs. It maybe provide through a government sponsored social insurance program or from private insurance companies. It maybe purchased on a group basis (By a firm to cover its employees) or purchased by individual consumers.
There is a scheme of health insurance for the self-employed. One may already be self-employed or plan to start his own business after retirement. In these cases, the following tips will help one find the best self employed health insurance coverage options that will fit in his budget.
ü Keep the Health Insurance you have for awhile:
There is an easy way to ensure health insurance for the self employed or people who have left their corporate job. Just invoke your rights under health provisions in the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986. Under COBRA, jobs can be left and current coverage can be kept up to 18 months at group rates. You can keep it as long as that company employs 20 or more people and one is not fired for gross negligence.
ü Lighten your load before you leap:
If you are capable of planning ahead and leaving your job at your sweet time, you must sign up the least expensive health insurance plan offered by your company. This should be done during the open enrollment period closest to your departure date. Thus, you will have a lower cost self employed premium to cover under COBRA.
ü Don’t let time slip by:
Legally, one is granted access to health insurance as long as one finds a new policy within 63 days after one reaches the end of your COBRA benefits.
ü Marry Well:
Having a working spouse will definitely guarantee success for a self employed person.
ü Do your Homework:
Check out ehealthinsurance.com if you need your own self employed health insurance policy. This online resource helps you compare several health insurance plans that are available in your area.
ü Find a Reputable Health Insurance Agent:
Try to take interview of several health insurance agents. Then compare the price and coverage of the self employed health insurance plans they offer.
ü Pay more to Pay Less:
Choose a plan with a high deductible, and combine it with a tax-free health savings account (HSA).
ü Join the crowd:
The covered groups or individuals pay premiums or taxes to help protect themselves from high or unexpected healthcare expenses. Similar benefits paying for medical expenses may also be provided through social welfare programs funded by the government. By estimating the overall risk of healthcare expenses, a routine finance structure (such as a monthly premium or annual tax) can be developed, ensuring that money is available to pay for the healthcare benefits specified in the insurance agreement. The benefit is administered by a central organization such as government agency, private business, or a not-profit making entity.