How Can Freelancers Find Affordable Health Insurance Coverage?
By Erinn Springer
Everyone is well aware of how much health care costs can affect a family. Everyone also knows how much health insurance costs when you have an employer to help offset those costs. However, for an individual who does not have employer-sponsored health insurance, health insurance may not seem like an option at first.
The Low Income Government Option
A freelancer may, in some cases, apply for state Medicaid coverage; however even just for medical, the average freelancer may make more in one day than the income limits instilled for a month. Sometimes freelancers may not have the ability to support themselves and their family, but may make too much for government help.
The easiest way to obtain individual or family health insurance is to apply online or talk to a health insurance agent. Still individuals who have pre-existing conditions are not guaranteed coverage and will be turned down.
If a freelancer can not obtain individual health insurance there are a few other options. These options include COBRA insurance in some cases, the local Chamber of Commerce, any number of freelancer unions as well as a few national organizations who offer various group rate plans for freelancers.
COBRA is an option if a freelancer has just stopped working for a traditional employer. If an individual qualifies when leaving the employer, the freelancer can invoke his or her COBRA right, which will last up to 18 months-as long as the premium is paid on time every month. The premium can become quite expensive though. The freelancer needs to pay the entire group premium including the dues which were previously taken from the paycheck and all of the costs the employer was subsidizing, if there were any. This could become quite expensive in the long run.
The local Chamber of Commerce where you live has a reputation for helping local businesses, including many freelancers. While a Chamber of commerce will usually only offer group insurance packages to small business employers, those with 2 to 50 employees, most do have individual plans available at a discounted rate. These are the plans for freelancers and the other self-employed people in the area.
Freelancer unions are numerous and chapters are located all throughout the United States. Each union will have their qualifications and other rules to abide by, but because they are a union, they have access to and offer various group plans to all freelancers.
Other various business organizations and associations sometimes accept freelancers into their chapters. These associations typically also have access to and offer group plans to their members.
A combination of a Preferred Provider Organization plan with a high-deductible and a Health Savings Account is another option for freelancers. Freelancers with this type of plan will pay lower monthly premiums because of the high-deductible.
Freelancers do have options when it comes to health insurance. It is too risky to go without coverage-both physically and financially. Freelancers should talk to an insurance agent online and compare health insurance quotes to find affordable options and get the right coverage.
By andrea, June 4, 2010 @ 6:45 pm
Just the mention of health insurance is enough to make my head spin. Our premium went up over $100 per month, and we’ve never even used it! I can’t really afford the insurance, but my dad had a heart attack when he didn’t have insurance, so I know I can’t afford to be without it either. The system has us right where they want us!!
.-= andrea´s last blog ..Smart Girl =-.
By Matthew C. Keegan, June 4, 2010 @ 6:48 pm
Andrea, I can say with confidence, “I know what you are going through!” Unfortunately, there are no simple solutions, although we have saved money by taking a higher deductible. As long as we no has a major illness, we’ll be fine. But, if a big bill comes forth, we’ll be eating thousands of dollars in expenses. We can’t win!
By Jeanette, June 30, 2010 @ 6:59 pm
Not to be rude, but getting insurance, even with a high deductible, is quite impossible if you have pre-existing conditions and/or if you take three or more medications. Flat out impossible, except in those states that have high risk pools.
You also left out some important information here. When COBRA expires (usually 18 months, but can be longer under limited circumstances), the insured has ONE opportunity to get guaranteed coverage from any company that provides individual policies in their state. Those companies are required to offer portability policies under ERISA. My cost of my COBRA (before any government subsidy) is nearly $500/month for a single person. Expensive, but good PPO coverage. Under portability, the premium has been quoted at $700 to $3800/month. No, I’m not kidding.
Also check the small business associations in your area, not just the COC. And btw, if you think Obama’s health care plan is going to fix this, think again. You have to go without insurance for SIX MONTHS before you are eligible for the government high risk group. So, those of us who are responsible enough to take care of our medical costs are screwed by being responsible. Smart, right?
By Kevin, July 18, 2010 @ 3:54 pm
I live in Florida, I have a family of four (girls) my wife and I needed affordable health insurance. After countless hours of researching all the companies on the internet we came across http://www.affordablehealthlifeanddental.com they gave us the most competitive prices and offered the best customer service. I would highly recommend them to anyone living in Florida that needs Health, Dental, or Life insurance.