warning about health insurance

P

pso

Joined
Oct 29, 1998
Messages
494
I have read in various threads here about the difficulty in getting heath insurance for yourself when you go full time. In one of those threads, someone recommended contacting the NASE regarding the insurance that they offer. I found a link to this article (http://www.boston.com/business/globe/articles/2004/01/18/premium_deal_with_complications/) in a forum for technical writers, many of whom are also self-employed. The alternatives that have worked out for some of them is to get the insurance offered by large, focused and well recognized professional associations, such as the IEEE for those with a background in electronics.

Phil
 
Consider a Health Savings Account

These new accounts allow you to stash money pre-tax ($2600/yr for individuals & $5150/yr for families, more is you're 55 to 64) into an account that grows tax-free, if used for medical reasons. This is a great big step toward a more sane healthcare policy. You must combine this account with a high-deductible insurance policy, which is what self-employed folks are faced with anyway, high deductibles & rates. And if you're relatively healthy, this acount can grow and grow.

It would be nice to have a $100,000 dollar account sitting there, ready to pay to fix the bladesmith's hammer shoulder at age 80. Heck, I'm sure they'll give you a discount if your forge your own artificial hip, when the time comes! ;)

Just some thoughts to keep you knifemakers healthy.

Ben
Boy Wonder
 
Be careful!

My new employer has informed me that you can only save the maximum per year. If you don't use it all, the employer gets to keep the excess, and you lose. You start over each year. Double check how the feds have outlined this. It can be confusing.

Also, if you typically get money back from the IRS each year, your refund will be less, because your taxable income will be less. Of course, it is wise to owe the IRS nothing at tax time, but it is also wise for you not to receive a refund. That is money you could use all year. Why let the IRS collect interest on your money?
 
Mike-

Very true. The old medical savings accounts did not allow the pre-tax money to be carried over to the following year or to grow tax-free. The new health savings accounts, passed in Bush's recent Medicare bill, allow for the new, flexible and actually useful health savings.

Initially, it will only be available to those who are self-employed or who own small businesses. Hopefully, larger employers will begin offering. Since I have some control over this at my present employer, I'm pushing for it, in a big way.

Salut and Good Health!

Ben
 
Insurance through the National Association for the Self Employed is very scammy. I would not do that. I have heard horror stories about them not covering stuff.......
 
Peter

The gist of the article was that the NASE insurance was "scammy" as you had described. The alternatives proposed were the ones that did work well for people. Sorry for not making that more clear in my original post.
 
i pay $120 for my insurance premium my lowest so far and individual or family needs to identify with what they need out of a health plan. Notice I say need, because unless you make more money than you know what to do with there is no way in the world most people can afford the "Perfect" plan with all the bells and whistles. check http://www.insurance-quote-free.com see current insurance companies prices. Health insurance has changed dramatically over the last five years.
 
I normally stay out of offering financial advise to others.
This is one place I can speak with experience.I had insurance when I was self employed that was NASE related.It looked good and the premiums were low.When my wife became ill,and the bills mounted I was left with over $40,000 that I owed. These policies pay 100% of the covered illness,BUT the limits of coverage are almost nothing.For example,the policy limits on having a kidney removed were $5000 Those limits are hidden in the medical-ese yadda-yadda-yadda part of the policy that you get AFTER signing up.
Read every word and ask specific questions.Even with all that ,many of these policies are still scammy.I was told that ALL expenses were covered after the deductible.By the time we tried to pursue the false policy and selling statements, the company and the sales reps were gone.
 
I was with NASE for a while but didn't have their insurance, they just didn't seem right to me,

you can if you are young and healthy be self insured
put your own money away to build in your own acount and invest it.,, along with a high deductible insurance
using the differance to put away..
a cover me now policy to keeps costs down , once you get enough built up and interest gain is good years down the road..
you can then get a heath policy to now protect your investment if you didn't have to use the money along the way.:)
 
I just started a Health Savings Account this year myself. It's pre-tax, tax free and can carry over. It seems to be the way to go but it's a bit of extra work with a checking account and confusing deductable process. Still the savings can be significant.
 
Insurance sounds all good but the last time I worked someplace I had the option of getting it, I crunched the numbers and figured out between the premiums, co-pay and deductible I couldn't afford to get sick even if I had gotten it. It just costs too much to insure against getting sick and it costs too much to get sick so if I get something I'll just have to die.
 
I dropped mine back in 1991 and for a time felt like a fish out of water
B/C and B/S was getting to be $400.00 a month and rising fast this was in 1991..
My son had to have an MRI done back then after I dropped the insurance
the mri was at that time just over $600.00
my deductible would have been $600.00 if I kept the insurance and the
premium would have been $400.00 for one month =$1000.00
they excepted $100.00 a month to pay the ~$600.00 off,,,
I made money..
since then My wife is covered where she works but not me.
but with-in the last ~4 years the VA has bee seeing to me, not the best service but it helps..
the point would be if I had saved the $400.00 + a month since 1991
I'd have in the bank right now over $72,000.00 plus interest..:eek:
hind sight is 20-20
insureance is good for the catastrophic events only IMHO
 
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