Personal Health Insurance

For many people, the primary reason they work for someone else is because of health insurance. The fear of not being able to afford medical care, keeps people from starting their own business, retiring, or doing what they really want to with their life.

The reason for this concern is because of the high cost of insurance. Most people who look into getting their own health insurance get a quote, discover that the fees are very high, and stop looking. In this article we are going to examine several ways to get insurance that is less expensive.

High Deductible

Insurance companies charge you more if they expect to have to pay more. By choosing a high deductible (particularly if you are in good health) you can lower your payment.

Even if the high deductible means you are paying more out of your own pocket, insurance companies can still save you money if you are able to use their contracted rate for services. For example, if you schedule an appointment with a doctor and just pay for it yourself, you may be charged $300. However, the same visit may be listed as a $60 service based on the contract your insurance company has with the doctor. So even if you end up paying the entire cost yourself, you can still benefit from the lower negotiated rate from the insurance company.

Group Insurance

If you try to buy personal insurance, you will be charged based on the risk you pose. If you have pre-existing conditions or are older, your rates will be significantly higher. However, in some states there are limits to how much more an insurance company can charge if you are part of a group plan.

Group insurance is what most companies get for their employees. If your state regulates how high premiums can be for group insurance, you may be able to get a better deal by getting group insurance instead of an individual policy.

Usually group insurance will require at least two members and will need to be purchased by a company not an individual.

Health Saving Plans

Another option that goes along with high deductible health insurance is health savings plans. These are savings accounts where you (or your company) can put money tax free and then u se it for medical expenses. The account follows you, so you still keep the money even if you move to a different employer.

Health savings plans can be a valuable way to prepare for going into business for yourself. If you set aside money into a health savings plan while you are working for another employer, you’ll have a reserve setup to use for medical expenses when you start your own business. When you start your own business you can get an insurance plan with a very high deductible to keep your monthly expenses as low as possible and use the health savings plan to cover any expenses not covered by the insurance plan.