 |
| Direct Auto Insurance |
Being self-employed takes determination, skill, self reliance and
hard work. It also takes health insurance. For many looking to strike
out on their own, the cost of obtaining insurance in the private market,
if it can be had, is a major obstacle to deal with. Most entrepreneurs
are busy struggling with the real challenges they face within their
actual business. The time, and especially the money, spent on buying
health insurance moves them away from what they need to be doing to
succeed.
Rising Costs a Challenge
Most self
employed people have left the security of a job for the excitement,
fulfillment and hopefully the profit of a business of their own. However
a large part of the security they left behind is in an employer
sponsored group health care plan. Many employees do not realize the high
costs their employers pay to provide them with health care. Health
insurance costs have skyrocketed. The average cost of medical care and
insurance for a family in the U.S. is approaching $20,000 a year. While
employees are shouldering more of this cost, few see the grand total.
The cost of insurance can be shocking to those looking to work for
themselves.
For those just starting a business, the costs can be a
major challenge. Most entrepreneurs struggle just to pay their most
basic bills when first getting started, and large health insurance
premiums may tragically persuade people to give up their dreams of self
employment. This doesn't always have to be the case. There are ways to
reduce the cost of health insurance for the self employed.
Use Tax Deductions
When
looking at your premiums, keep in mind that they are tax deductible, so
long as you don't have access to a group plan through an employer or
spouse's employer. This tax break can significantly reduce your real
cost of insurance. If paired with a Health Savings Account, nearly all
of your medical costs and health insurance premiums can be written off
your taxes.
If premiums still appear to be too high, consider
purchasing a plan with a higher deductible. You will have to make higher
payments if you actually use medical care, but the cost savings from
the lower premiums will help offset it. And if you don't use any medical
care, you will have more cash flow to put towards your business.
Dealing With Pre-existing Conditions
Making
a health care plan more affordable, however, is only one part of the
puzzle. For many people with pre-existing conditions, it can be
difficult to get insurance whatsoever. This problem will be solved in
2014 when the Affordable Care Act requires all health insurance
providers to disregard pre-existing conditions when accepting policies.
But until then, there are still other options.
You may be eligible
to continue under your previous employer's group plan under COBRA.
COBRA is a temporary solution as in most cases it lasts for 18 months.
It can also be very expensive as well since the employer is no longer
making contributions.
Check to see if your state allows one man
groups. In some states, a self employed individual can purchase a group
plan, like large business have, even though they are the sole employee.
In such cases, pre-existing conditions are not taken into account.
However, in most states, the requirement for a group plan is 2
employees. If your business plan calls for adding employees, the sooner
you do so, the sooner you can apply for a group plan.
If your
state does not offer groups of one, and you don't expect to have an
employee anytime soon, check to see if you are eligible for your state's
high risk pool. High risk pools were set up in order to provide
insurance to those that would not be offered any insurance plans in the
private market. The high risk pools are not open to everyone and they
still come at significant cost. However they are less costly then being
sick and not having insurance.
Know The Risks
Many
entrepreneurs go without health insurance. In most cases the decision
is borne out of necessity. If this is a route you are considering going,
please be aware of the risks of doing so. High premiums may make it
difficult to stay self employed, however the cost of a major medical
service can be financially devastating without insurance.
For more information, refer to my guide on insurance for entrepreneurs. You will also find information on a low-cost health plans, which are attractive to those working for themselves. The more you know, the better decisions you make.
Article Source:
http://EzineArticles.com/expert/Matt_Mahoney/936479
No comments:
Post a Comment