When you drive off into that perfect sunset headed for that perfect boondocking location or favorite RV destination, you leave most of the worries and concerns of everyday life behind. Right?
I bailed out of Corporate America years ago and it was slim pickings for awhile. My daughter called it the “baloney years” because many times that was the only thing for supper. I had to do without plenty of amenities during that time years ago, cable, cell phone, newer car …. and health insurance. I just couldn’t afford it. Just about the time I was getting my head above water I ended up in the hospital Emergency Room with my gut hurting so bad I couldn’t stand it. 3 days in the hospital later with a diagnosis of acute pancreatitis and gall bladder surgery thrown in for good measure, I had medical bills topping $30,000…. and no health insurance. 62% of bankruptcies files in 2007 were due to medical expenses so it can be a major financial blow.
If you do not have access to health insurance through your job or a spouse, just what do you do? In these times of recession, what happens if you lose your job and the health benefits package that goes along with it? You can check with professional groups you may be affiliated with, some states have small business groups that offer health insurance or like me, you can elect to get an individual health plan.
I always post about things I have direct experience with on the blog and this post on self employed health insurance is no exception. There are myths and horror stories circulating around the internet about the prohibitive cost of individual health insurance, stories about people being turned down for health insurance and stories about health insurance that doesn’t really protect you. As with everything, these stories are partially true. If your prior company health insurance had all the “bells and whistles” like doctor visit co-pay, prescription plan, optical and dental; you are probably in for sticker shock when you price an individual plan. If you have had a major medical event like a heart attack or cancer, you may find individual health insurance unobtainable depending on which state you live in. Heck, if you have high blood pressure, take anti-depressants or if you are obese, the health insurance coverage may be elusive as well.
I decided to go with a high deductible, no frills health savings account or HSA. For those of you unfamiliar with an HSA, here is what it amounts to:
A health savings account (HSA), is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP). The funds contributed to the account are not subject to federal income tax at the time of deposit. Unlike a flexible spending account (FSA), funds roll over and accumulate year over year if not spent. HSAs are owned by the individual, which differentiates them from the company-owned Health Reimbursement Arrangement (HRA) that is an alternate tax-deductible source of funds paired with HDHPs. Funds may be used to pay for qualified medical expenses at any time without federal tax liability. Withdrawals for non-medical expenses are treated very similarly to those in an IRA in that they may provide tax advantages if taken after retirement age, and they incur penalties if taken earlier. These accounts are a component of consumer driven health care.
If you are familiar with my situation from prior visits, you know I work all over Texas and Oklahoma. That means I need a health insurer with a widespread health network and the ability to choose my own doctors and hospitals should the need arise far from home. I don’t get sick often, I don’t run to the doctor whenever I have a runny nose and I only take one cheap prescription every month. X out the costly doctor co-pays, prescription services and low deductibles. The nuts and bolts of the health savings account plan I have had for the last 4 years from Blue Cross/Blue Shield of Texas amounts to this:
It is a $5000.00 deductible. This may seem like a horrendously high deductible until you think about it. One night in the hospital or one small outpatient surgery will reach the health insurance deductible. A real bonus for me is the doctor or hospital gives me a reduced rate for having health insurance. Blue Cross/Blue Shield sets what they will pay and negotiates for me — even if I have not met my deductible! After the deductible is met, my expenses are covered 100% up to two million dollars. My maximum exposure is $5000.00 I feel comfortable with my plan and I feel confident as well that it will save me from financial ruin should I experience a catastrophic medical event. My first year premium was $180 per month and that has gradually gone up to $230 per month this year. Still affordable health insurance in my book.
So where do you go to get health insurance? I detest having to deal with insurance salesman! I did my internet research and had a good idea in my mind what a good health insurance plan would look like. Then I went to a website called eHealth.com. I wholeheartedly recommend this website!
eHealth is the granddaddy of online health insurance sales. Way back in 1997, they made the first online health insurance sale! Nowadays, they offer over 10,000 different plans from 180 different companies nationwide. Blue Cross/ Blue Shield, Cigna, Aetna, Assurant — they are all there.
Two things keep me going back to eHealth. One is that I can compare health insurance plans from different carriers side by side and look at what one health insurance plan offers versus the other one. The other thing I like is that in most cases you can do it all right there online. They don’t send you any papers to sign and it is really very little hassle.
Click this link to check them out: Find an HSA plan that’s right for you.
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