Group Health Insurance Saves Everyone Money
Today there are insurance companies that provide real solutions and great coverage but many people are just not able to afford it. Things seem to be getting worse, as Blue Shield has recently announced an increase in rates of 59 percent across all individual policies. This is a disastrous notion. The fact is many other insurance companies may soon follow suit. If there is any hope for insuring our future then something must be done. It does not seem that government intervention will be enough; at least not with the new policies. Something more drastic needs to happen else we all face an uncertain future in the health care of our nation.
It seems one of the best ways to fight rates is to get coverage through jobs. There are literally thousands of companies that have some pretty sweet deals when it comes to health care costs and that is because group health insurance policies. You see, group health insurance provides the backbone for survival of heath care because the costs are so low. Buying in bulk has always saved money; it has been a common practice for literally thousands of years. The same is true with health insurance, but with a small hitch; everyone needs to be on a similar plan. There are PPO plans and HMO plans and if one of the employees decides to go outside the norm of the rest then he or she can expect to pay a premium.
This is not to say all is bad for those who wish to get extended coverage; it just means that everyone can adjust their plans for a premium. Most people will stick with the basic package and take full advantage of the savings of group health insurance. This seems to be the best option for most of this country; take care of the emergency health concerns with the proper coverage and lower the cost of doctor visits. Of course, in order to keep insurance costs low, we all have to do are part by staying healthy. That means going out and getting exercise on a daily basis; usually an hour of cardiovascular a day should do it.
Getting exercise is just the beginning. Make sure you eat the right foods and get a nutritional habit of eating. Keep in mind that we all have to work together to keep health insurance premiums low; and do not underestimate the power of group health insurance.
Learn About Group Health Insurance
Group health insurance is one of the benefits of employment at most companies. It is a great benefit for a couple of reasons. First, the premiums for group insurance are almost always a lot less. This is because insurance carriers can afford to come down on their rates when they get lots of new members at one time. It can be related to purchasing something in bulk. When you buy in bulk, the price is always cheaper. This same principle is used by insurance companies when selling group contracts.
Secondly, group policies don’t require you to have physical before being accepted. And in most cases, even the pre-existing clause is waived. You are automatically accepted into the plan if you working full time and have passed the probation period. Some companies have a three month waiting period when you start work, before putting you on the plan.
Every company has a certain time of year that is for “open enrollment’. This mean that anyone in your family that was not on the plan before, but wants to be now, can be added to the policy. Or it can also work just the opposite, if someone wants to get off the plan. But once you make this decision you have to live with it until the next open enrollment. The only exceptions to this rule are for marriage and divorce. Changes like these can be done throughout the year.
Small business owners can also now offer group insurance. The rates may not be quite as good as a larger company would get, but the employees can still get insurance. There needs to be at least two people, and no more than 50, to qualify for small business group insurance.
Today, more than ever, insurance companies are working harder to offer affordable health insurance to as many people as possible. Some people even say that insurance is a “necessary evil”, but being covered with the right insurance is a good thing. Knowing that families have access to the best medicare care, without a huge financial strain, is something you can’t afford to be without.
Health Insurance A Challenge For The Self Employed
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.