Health Spas Guide » Cobra

Affordable Health Insurance – Health Insurance For The Self Employed

admin — Thu, 29 Apr 2010 12:49:40 +0000

One of the things that is important to consider when you leave corporate America for the freedom of your own business is affordable health insurance. In fact, the reason most often cited for NOT taking the plunge into self-employment is the lack of cheap health insurance alternatives for people who are not employed by a company that can offer more affordable rates on health insurance through a group health insurance plan.

If you do decide to brave it and be your own boss, there are many places where you can cut corners. Letting yourself or your family go without health insurance isn’t one of them. Here are some common options that can make health insurance affordable if you’re a self-employed entrepreneur or crafter.

Coverage under a Spouse’s Plan

By far the most common option is to cover the family for health insurance through a spouse’s employer. As long as one member of the couple is working for a company that has a group health insurance plan, it’s usually the cheapest option for insuring the entire family.

COBRA

COBRA is an option for the beginning of your self-employment. For the first several months after you leave your job, your employer is required by law to give you the option of retaining membership in their health insurance plan. You will have to cover the entire monthly premium paid by your company rather than the amount that you’re used to paying as an employee when your employer was covering part of the cost. The true cost of that insurance can come as a shock to you – a family health insurance through a group can easily cost close to $1000 a month. It’s still more affordable than most plans that you can purchase as an individual. It’s also only temporary, so you should be looking for other health insurance options while you’re still covered.

A Health Insurance Cooperative with Other Self-employed and Small Business Owners

There are national and local organizations of self-employed workers who have banded together to combine their buying power and get affordable health insurance premiums through group policies. You can find more information about groups in your area through the National Association for the Self Employed (www.nase.org) or the American Association of Home-Based Businesses (www.aahbb.org).

Group Health Insurance for the Self-Employed

In many states like Maine, health insurance companies offer affordable group policies for groups of one. You may have to shop around to find a company that does, but there are benefits other than being a cheaper policy. The most important of these is that they MUST cover everyone in the group, regardless of health conditions. This is important for someone who may have been turned down for an individual health insurance policy because of health.

No matter what, it is vital that you insure yourself and your family against the possibility of illness or accident. There are cheap alternatives to individual health insurance plans for the self-employed.

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By: Carrie Reeder

Colorado Group Health Insurance

admin — Sat, 10 Apr 2010 01:06:43 +0000

In Colorado, group health insurance is designed to meet the health care needs of employees of large and small companies. In Colorado, a single person who owns a business could, in some circumstances, qualify for group health insurance benefits. If your employer offers group health plans paying only a portion of the premium, then you are responsible for the rest. This is true for individual and family coverage. Whether the employer pays all or a portion of the cost, Colorado insurance laws dictate that you cannot be refused, or asked to pay more because of your medical condition. Also, your group health insurance can never be cancelled, even if you get sick.

An important point to remember is if you leave your job, you cannot take your group plan with you. You can continue coverage by paying out of pocket for a plan called “state continuation coverage” or COBRA. This coverage usually lasts for three months. It also helps cover any waiting period you may have once you get a new job and new coverage. Keep in mind however; your new coverage may not include medication coverage for a pre-existing condition for up to one year.

Most group health plans in Colorado offer flexibility to companies in choosing plans. Companies usually offer employees several plans to choose from. A good plan will offer benefits like coverage for “out of the network” doctor visits by the members.

In cases where employees contribute to the plan, there are often times a savings plan benefit to employees. Check with your employer to see if one is offered and how it works.

By: Peter Emerson

Help! I Lost My Health Insurance!

admin — Mon, 01 Feb 2010 20:38:28 +0000

It can literally be one of the scariest places to find yourself – without health insurance coverage. When a simple trip to the emergency room can lead to thousands of dollars in charges, the last thing you need is to not have health insurance. But what options do you have? Graduating from college can be a true rite of passage into adulthood, because this is the time when most health insurance plans drop you from your parents’ plan. Even landing a job right after graduation can still mean that you will have to go through a grace period before the company’s health insurance kicks in. And if you have left a job for greener pastures, well…don’t get sick or injured!

But do I even have options?

Well you probably do have options for health insurance coverage, but they may not be ideal. If you have quit your job, then you will have the option of extending your health insurance benefits for up to 18 months – thanks to COBRA. The only catch is that you will have to pay for those benefits out of your own pocket. Not exactly an easy thing to do without that paycheck rolling in every week.

Is that it? Is that my only hope?

Before you panic, just relax. The solution is short-term health insurance. As the name implies, this solution offers you health insurance options for a limited period of time. Most short-term health insurance benefits are available for 30 to 180 days. Depending on where you live, you may be able to obtain these benefits for up to a year.

And short term health insurance is the same as what I had at work?

Well, if you mean that you have coverage in the event of a hospital visit or sudden illness, then yes. You also can pick your own doctors and hospitals, which is actually an advantage over some health insurance plans offered by employers. But there are definitely coverage limitations on short-term health insurance plans.

So what am I not covered for?

That really is the million dollar question, isn’t it? Well, routine medical exams are not covered by a short term health insurance policy. Any kind of preventative care is also out the window with this type of coverage. Plus, you can forget about dental and optical coverage with short-term health insurance. For obvious reasons, this sort of health insurance also does not cover medical costs relating to a pregnancy nor, anything having to do with the childbirth itself.

No offense, by why should I bother with short term health insurance?

Because a simple trip to the emergency room can cost thousands of dollars, and any emergency procedure and hospital stay can cost tens of thousands of dollars. Hey, short- term health insurance is not supposed to be the long-term solution. It is just a way to make sure you are covered while you are not on any employer’s health insurance plan. And it can help you avoid going into serious debt, should something happen to you when you are not otherwise covered on a health insurance plan. For that reason alone, it is definitely worth the expense.

By: Albert Medinas

Individual Health Insurance Or Group Health Insurance?

admin — Tue, 29 Dec 2009 08:11:04 +0000

Most people believe that individual health insurance and group health insurance are essentially the same thing and that the only difference is that one is sold to individuals and that the other is sold to employers and other group organizations (such as clubs) to cover employees or members of the organization. In fact it is not quite as simple as that and individual and group health plans differ in a number of significant ways.

One of the most significant differences is that a group plan normally has fewer limitations and does not usually require those covered under the plan to provide proof of insurability. In other words the mere fact that you are a member of the group to which the plan applies means that you are eligible for cover.

Another important difference is that the contract for a group plan is made between the insurance company and the employer, union, trust, club or other sponsor and is not made directly with you as would be the case with an individual plan. This means that you have no power to negotiate changes to the plan to suit your own specific needs and that, where changes are made between for example your employer and the insurer, you have no real power to intervene.

The great advantage for most people of seeking health cover through a group plan lies in the fact that it has fewer limitations and is generally cheaper than an individual plan. However, one significant disadvantage is that your membership of the plan is tied to your membership of the group and, in the case of employment, a change in your employment status will affect your cover. For example, if you retire, are laid off, quit, or simply suffer a reduction in your hours you could suddenly find that you and your family lose your health insurance.

Now there is of course some protection for individuals who lose their employment through no fault of their own and the Consolidated Omnibus Budget Reconciliation Act (COBRA) will allow you to retain your group scheme cover for a while (typically 18 months) while you make alternative arrangements. The drawback of course is that you still have to pay for cover and this can be very expensive since you will have to pay not only the employee contribution which you were paying while in work, but also the employer’s contribution since you are no longer on the payroll. The benefits to which you are entitled under COBRA cover may also be reduced in many cases.

One other key difference between group and individual health insurance which is worthy of note here arises out of the Age Discrimination in Employment Act. This essentially means that, where a group plan is in existence covering a group of twenty or more employees, the employer must make insurance available to all employees, including their spouses and dependents. Accordingly, there is no age limit imposed for cover and this can be particularly beneficial to older employees.

These are of course only some of the main difference between group and individual health insurance but nonetheless represent a good starting point in helping you to decide between the two. Which you choose must of course be a personal decision but one important thing to remember is that health insurance becomes increasing difficult to get and more expensive the older you get and, even if you do decide to ‘shelter’ under an employer’s plan, the day will surely come when you will be on your own and forced to seek cover outside of your employer’s scheme.

Your employer’s scheme may be fine today but do not forget to view it not simply in terms of your present needs, but also in terms of your longer term needs.

By: Donald Saunders

Health Insurance Plans for Students

admin — Mon, 21 Dec 2009 05:05:08 +0000

Health care insurance is a necessity today. Most educational institutions in the United States require students to be covered for healthcare. Surveys reveal that nearly thirty percent of students in the US do not have healthcare insurance, and ask their parents for financial help when in need. These students are most likely to drop their studies for financial reasons, as they have to work to pay off their dues of healthcare expenses.

Many students find it difficult to meet the costs of healthcare insurance, because it does not come cheap. However, it is advantageous for a student to have this medical insurance.

Although there are many plans offering student health insurance, they can be categorized into three basic types: parent’s health care plan, college health insurance plan, and the commercial health insurance plan. Each of the mentioned plans has their own advantages and disadvantages.

Under the parent’s health care plan, a college student may not be covered, after a certain age. If that is the case, extra coverage called COBRA needs to be obtained, which is not necessarily cheaper than purchasing a different plan altogether. Moreover, it may be a pre-requisite that the student should have at least ‘x’ number of college credit hours to qualify for the coverage.

The college plan can offer coverage through HMO (Health Maintenance Organization), or PPO (Preferred Provider Organization). These are group plans and generally cheaper than commercial health plans. However, the coverage offered may be limited. Other options would have to be explored for coverage that is more comprehensive. The college plan is preferable when there is an ‘on campus’ hospital. Most of the college plans cover all accident or health care expenses, subject to the condition that the student continues to be registered with the college for a particular duration.

Many companies sell commercial health insurance. The terms may differ widely, hence, it would be essential to purchase a plan that offer facilities that one finds suitable. The best way would be to make a list of the features that are important, and then get the details for different plans from various companies, and compare them to decide which plan is the best one.

Under the commercial health plan, there is the temporary student health insurance, which is meant for students staying away from home. It can be availed for periods of thirty days, to six or twelve months. According to the temporary plan, the student can find a doctor or hospital of his choice by taking an Indemnity Plan. Alternatively, he or she may take the Managed Care Plan, which allows a choice of doctors and hospitals that are in the plan’s network. The Managed Care Plan has lower premiums than the Indemnity Plan.

Most states in the US have legal stipulations, which require compulsory health care insurance for foreign students, and set a minimum amount that should be available for emergency evacuation, medical treatment and repatriation of remains, if required. International student medical insurance costs approximately six to seven hundred dollars per annum.

In view of emergencies requiring medical attention, it is essential for students to be covered under health care insurance. It is a precondition for registration in most educational institutions in the US. Many states have laws that make it compulsory for foreign students to be covered by the health care insurance.

By: Joseph Kenny