Chix Trax is sponsored by...

HOW TO MAKE MONEY ONLINE WITHOUT A SINGLE CLIENT. Sick to Death of having your bank account tied to the whim of your clients? Then this teleseminar series could be the answer you’ve been looking for!  Click here for details.

~~~

The Hunt for "Reasonable" Health Insurance

Donna Doyle

If there's one thing that divides freelancers from all other employees, its our obsession with finding affordable health insurance. Prices have risen astronomically over the past five years, while co-pays have increased and coverage decreased. And unfortunately, there doesn't seem to be much relief in sight.

My friend David told me that Empire Blue Cross raised his rates from $404 a month in 2003, to $836 a month at the beginning of 2008. David is single with no dependents, so paying what seems to be a mortgage payment for being healthy is ridiculous. When he called Blue Cross to see how he can get less-expensive coverage, they suggested he join some sort of business group that offers health insurance.

David joined the New York State Business Group; his provider is now HIP and pays only $464 a month. Quite a difference!

So you may wish to check if your local Chamber of Commerce, an industry-specific trade association or local Small Business Group offers health insurance policies.

Another possibility is the Freelancer's Union, which won some good reviews from their customers. But there are limitations: it operates in only 30 states.

Another valuable tool is  http://www.healthinsuranceinfo.net . This site shows a map of the country and after clicking on a state, a document is downloaded that covers everything from what kinds of programs are available to small business owners to whether there is a high-risk pool available for those with chronic health problems and have been rejected by insurance providers. It's a great place to start.

Catastrophic insurance (if your state offers it) is an option as well. In other words, you pay out-of-pocket for doctor's visits, but you're covered if you need brain surgery. If you’re relatively healthy and visit a doctor once or twice a year, this the least-expensive way to go.

If you want to check out some of the options in your state,  http://www.ehealthinsurance.com  allows you to compare a variety of policies offered from dozens of health insurance providers. However, this site doesn't operate in all states and covers only individuals.

I happen to live in New Jersey, which is a mutant state when it comes to health insurance. We aren't allowed access to health insurance through our local Chamber of Commerce, or a business Trade Association. Catastrophic Insurance isn't offered either. It’s either the Cadillac plan or nothing.

 As a result, New Jersey has one of the highest health insurance rates in the country. But you are allowed to buy a much-cheaper group policy if you are self-employed with two or more people. Yes, that includes a husband and wife. This kept our premiums to a little under $1,000 a month for myself, my husband and my daughter; astronomical, yes -- but far less than what individual family policies cost.

What about those newfangled Health Savings Accounts?   Frankly, I’m not impressed. I did look into it, but my insurance agent talked me out of it. HSA’s are great for people in their 20s who are healthy, he said.  But if you’re in your 30s or 40s and supporting a family (like I am), the price of the insurance premium plus putting money in an HSA will cost you more per month than having an insurance premium alone. Sad, but true.

If you live anywhere in the world except the USA, you don't have to worry about any of this and, frankly, I envy you. If you are lucky enough to have a spouse or partner with great health insurance, congratulations.

But if you're on your own, look upon health insurance as one of the costs of doing business. Here's something that makes this pill a tiny bit less bitter to swallow: You can write the entire cost of your premiums off your income tax. This could be an extra deduction of $10,000 - $15,000 a year.

Oh...and find yourself a good insurance agent!