(www.sass-pants.com) — Affordable health insurance is one of the biggest concerns for people facing layoffs or reductions in hours in this tough economy. I know that losing my husband’s benefits when he left his job was a big stressor for us, especially since I’m self-employed!
I recently had a chance to sit down with eHealthInsurance.com Vice President of Human Resources Wendy Nice Barnes to get some insider advice on how to save money on health insurance when you’ve lost employment insurance benefits.
But first, some background, courtesy of eHealthInsurance.
- According to Harvard researchers, at least 50 percent of all bankruptcies result – at least in part – from medical expenses.
- Affordable health insurance is possible for any age group.
- Average health insurance premiums for people ages 25-34 were $128 per month with an average $1,829 deductible
- Average health insurance premiums for people ages 35-44 were $173 per month with an average $1,955 deductible
- Average health insurance premiums for people ages 45-54 were $227 per month with an average $2,262 deductible
- Average health insurance premiums for people ages 55-64 were $301 per month with an average $2,420 deductible
Wendy shared with me that the single most important factor in finding affordable health insurance is to arm yourself with information: Carefully research your plan choices and understand all of your coverage options before making your choice. You also want to get a good understanding of the terms that the agencies use. Shop around for the coverage you need,” Wendy said. “The best option is to dig in and investigate the alternatives.” She suggests the following:
- Be very honest with yourself about the coverage that you need and will use.
- Don’t over pay for things you don’t need, make sure any coverage you get takes care of your real needs.
- If you have children, make sure their needs will be covered by any policy you buy, so be sure you’re looking at the largest varieties of plan options available in your state.
- Your safest bet is to go to a broker (such as eHealthInsurance or 2 Insure 4 Less) that is licensed in your state and sells the widest variety of products available.
- Consider an Health Savings Account (HSA) that can grow with you and your business. With a HSA you can purchase a higher deductible plan and then save money – pre-tax – in a HSA. You can contribute pre-tax dollars to your own HSA and use the money in that fund to to pay for qualified medical expenses when they arise.
- Ask your doctor or pharmacist if you can switch to lower-cost medications, shop around for basic medical supplies on your own, and take advantage of free preventive care.
- Make sure you get your yearly physical; it could determine your eligibility for future health plans. Knowing your current health status better prepares you to make a decision on whether you should change plans or if you can scale down your existing (or new) plan in the event you need to make a change in the future.
- Check your health insurance plan to see if they offer a discount at local or national health clubs. Some plans do and you can save money on the monthly membership cost for the family.
- Don’t be afraid to mix and match plans and coverage options, including COBRA, for family members to keep costs lower.
The best way to figure out what kind of insurance coverage will work for you is to do a comprehensive self-check of your health. “Ask yourself how often you go to the doctor, what your usual symptoms are, what regular prescriptions you take, and what maintenance medications you take,” said Wendy. “By doing a self-assessment, you can then go to a site like eHealthInsurance and tailor a plan to your needs. For instance, you may not need a maternity benefit. If you’re on a maintenance drug and it’s generic and you’ve been on it forever and it works well for you, you may find you can get discounted rates for a 90-day supply.
“Model a plan that’s for your needs,” Wendy said. “Compare similar plans with different carriers to make a correct decision. If saving is the most important thing for you and you’re relatively healthy, you may be set with a higher-deductible plan because your premiums will be much lower.”
Regarding mixing and matching, Wendy said, “If you’re faced with unemployment, get creative. If the plan’s primary beneficiary has a pre-existing condition, and needs to stay on COBRA insurance, you may still be able to save money by placing additional family members on a separate, and potentially less costly, plans. Do the math on separate policies to see if you can’t meet your family’s medical needs at a lower cost. Again, it’s easy to price individual and family plans online at eHealthInsurance.com.”
A Few Words on COBRA
Qualifications for COBRA insurance include voluntary or involuntary termination of employment (for reasons other than gross misconduct), as well as reduction in the number of hours of employment. If you elect to maintain your health insurance benefits through COBRA you’ll be required to pay the entire premium, plus a 2% administration fee, out of your own pocket. If your employer didn’t offer health insurance in the first place, if your employer went bankrupt, or if you wait too long to apply for COBRA benefits, you won’t be eligible.
“If you’re offered COBRA continuation coverage, learn exactly how much your COBRA premiums will cost each month, and exactly what the benefits are,” said Wendy. “COBRA insurance often provides very comprehensive benefits to satisfy a broad audience. Think about which benefits you really need.” Note that COBRA health insurance can provide important protection for people who have pre-existing medical conditions. These conditions may prevent them from otherwise qualifying for an individually underwritten health insurance plan.
If you’re married and your spouse is employed, check to see if you can get on your spouse’s employer’s plan. Learn how much, if any, the employee share of the premium would increase if you join the plan. Some employer-sponsored plans also allow for non-married employees to add a long-term partner to an employer-sponsored plan.
If you’re in relatively good health and don’t have any pre-existing conditions, you may be able to find less expensive options to COBRA by purchasing individual health insurance. “In fact, the average COBRA premium costs 60% more than the average premiums for comparable individual coverage purchased online,” said Wendy. It’s easy to compare plans, benefits, and prices by calling an independent broker such as eHealthInsurance or 2 Insure 4 Less. For more information about COBRA, go to eHealth’s COBRA Learning Center.
Health Insurance Resources
- eHealthInsurance – Free Instant Quotes
- Compare Health Insurance Quotes with 2 Insure 4 Less
- eHealthInsurance.com YouTube Channel
Contents Copyright © 2009 Kristen King
(image: Sundeip Arora )
{ 1 comment… read it below or add one }
this is a great article, ms. sass. i’m posting the link to my facebook page. hope that’s ok! tss.
*tss*’s last blog post..how much i love my guitar