| Oct. 20 2007 at 8:58 PM |
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Don't make the mistake that I did and assume that taking COBRA health care continuation from an employer is the best way to get health insurance. You may find that buying your own insurance can cost a lot less than a "big fat corporate" health insurance plan.
The conversion options and COBRA are there to protect those people that have a serious medical condition. If you have a serious medical condition, or someone in your family on your employee benefits plan does, then you'll want to make sure that you are on the right level of insurance before you jump ship. This means planning ahead as much as possible to get on the right plan at open season, otherwise you may be paying more than you need on COBRA continuation until the next open season to change benefits. And don't expect first class treatment from the HR department when you've left the company and are taking COBRA!
-Jonathan
Author, Get a Good Deal on Your Health Insurance Without Getting Ripped-Off
ISBN: 978-0-9794-7810-9
www.BestHealthInsuranceBook.com
Author, Get a Good Deal on Your Health Insurance Without Getting Ripped-Off
www.BestHealthInsuranceBook.com
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| Oct. 20 2007 at 10:36 PM |
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I disagree with the notion that COBRA is just for people with serious conditions ... I had 4 x-rays in one year (I played a lot of soccer, heh) and took allergy medication, and this was enough to get me denied by 4 major carriers for individual plans in California.
I still get insurance through my spouse because there's no other way for me, and still have to pay out of pocket for it. And yet ... I'm young and healthy.
* Bad Habits
* A True "Lifestyle Business"
(from Small Business Essentials)
writing | marketing | web: NHG Consulting
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| Oct. 20 2007 at 11:12 PM |
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nhgnikole brings up a good point. The definition of what is a serious condition, unless regulated by law, is up to the insurer. In California, the list of serious conditions for some insurers is extremely broad, including basic seasonal allergies and acne! It would be unbelievable if it weren't true. See the article in the LA Times by Lisa Girion:
Health insurers deny policies in some jobs; Common
medications also can be deemed too risky in California :[HOME EDITION]. Los Angeles Times
[serial
online]. January 8, 2007:A.1. Available from: ProQuest Information and
Learning, Ann Arbor, Mi. Accessed October 20, 2007, Document
ID: 1190675481
How can you protect yourself? Since you need to buy health insurance from an agent (yes, even online), it makes sense to work with one that is going to check your application before submitting to avoid rejection. Different insurers have different underwriting rules, so what one sees as a problem, another doesn't even look at, unless you've already been rejected. This is because many insurance applications ask if you've been rejected, and can change your rate or deny based on your answer, which they can verify with the Medical Information Bureau (MIB), a credit reporting agency.
When you work with an agent, or agents, and find that you cannot buy individual health insurance (where they check on your health status), then you can consider employer or spouse employer coverage, or a small business policy.
There's so much more to tell - I was originally planning on writing one chapter on health insurance in another book, but found that there's too much to tell to fit into a single chapter, so it ended up being an entire book!
-Jonathan
Author, Get a Good Deal on Your Health Insurance Without Getting Ripped-Off
ISBN: 978-0-9794-7810-9
www.BestHealthInsuranceBook.com
Edited by: JonathanPletzke - Oct. 20 2007 at 11:13 PMAuthor, Get a Good Deal on Your Health Insurance Without Getting Ripped-Off
www.BestHealthInsuranceBook.com
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| Oct. 21 2007 at 12:44 AM |
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The debate in this thread is quite interesting.
I do have a question though. At what stage of a business should an owner consider health insurance.
I am considering changing my home based business into a commercial license professional business. I expect as my company expands, so will my employee list.
I'm a bit ahead of myself yet, but when should I begin to consider health insurance for my future business plans?
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| Oct. 22 2007 at 2:16 PM |
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I think that there are a lot of answers to this question, and the perspective of others would be valuable.
I think the answer depends on what you currently have for health
insurance. You could do it sooner or later depending on your cashflow,
how much time and effort you can devote to managing benefits, and the
health status of everyone that your small business plan might cover.
Let's consider three typical starting points for entrepreneur health insurance:
1. You are at you employer before leaving, or have taken the COBRA continuation from your employer.
In this case you are part of an employer's group policy. If you are
young and healthy, then you could buy your own individual insurance,
which in many cases could cost significantly less than paying the COBRA
continuation premium from your employer. However, if you have a medical
condition, and as pointed out in my previous post, the severity of the
condition is determined by the insurer based on the laws in your state,
you may want to jump right into your own guaranteed issue small
business policy. In some cases, being incorporated or an LLC makes it
easier to get more choices in small business health insurance. Then you
have the coverage for yourself right away, along with a benefit that
you can use to attract and retain employees.
2. You have your own individual health insurance (with or without family) that you've bought yourself.
In this case you've bought health insurance either as an individual
policy in your state, or as part of an association that is either in
your state or another state. Since you're covered already as an
individual, you may continue with this coverage as long as you are
happy with it. You don't ever have to get small business health
insurance coverage for yourself. But you may find that there are
advantages in either the insurance benefits or tax benefits of having a
small business plan. And again, you have a benefit that you can use to
attract and retain employees.
3. You have no health insurance.
If you don't have anything, then you can start with either
individual, or small group coverage. As an individual, you may be
medically underwritten and have either be uprated or denied in states
that don't have community rating. As a small business, you'll be able
to guarantee coverage for yourself and any employees even if you have a
significant medical condition.
Keep in mind that small business coverage requires more time and
effort than individual or employer coverage. Annual reporting and
shopping for new coverage each year are examples of the time
commitment. Your rates for the small business health insurance will
also go up each year based on how much healthcare the people covered on
the policy consume. If someone has a major operation on the plan, the
rates may increase significantly at renewal, and you'll need to shop
for new coverage. It happened 7 years ago at the startup where I was
working.
-Jonathan
Author, Get a Good Deal on Your Health Insurance Without Getting Ripped-Off
ISBN: 978-0-9794-7810-9
www.BestHealthInsuranceBook.com
Edited by: JonathanPletzke - Oct. 22 2007 at 2:19 PMAuthor, Get a Good Deal on Your Health Insurance Without Getting Ripped-Off
www.BestHealthInsuranceBook.com
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| Oct. 26 2007 at 7:15 PM |
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JonathanPletzke wrote:
I think that there are a lot of answers to this question, and the perspective of others would be valuable.
I think the answer depends on what you currently have for health
insurance. You could do it sooner or later depending on your cashflow,
how much time and effort you can devote to managing benefits, and the
health status of everyone that your small business plan might cover.
Let's consider three typical starting points for entrepreneur health insurance:
1. You are at you employer before leaving, or have taken the COBRA continuation from your employer.
In this case you are part of an employer's group policy. If you are
young and healthy, then you could buy your own individual insurance,
which in many cases could cost significantly less than paying the COBRA
continuation premium from your employer. However, if you have a medical
condition, and as pointed out in my previous post, the severity of the
condition is determined by the insurer based on the laws in your state,
you may want to jump right into your own guaranteed issue small
business policy. In some cases, being incorporated or an LLC makes it
easier to get more choices in small business health insurance. Then you
have the coverage for yourself right away, along with a benefit that
you can use to attract and retain employees.
2. You have your own individual health insurance (with or without family) that you've bought yourself.
In this case you've bought health insurance either as an individual
policy in your state, or as part of an association that is either in
your state or another state. Since you're covered already as an
individual, you may continue with this coverage as long as you are
happy with it. You don't ever have to get small business health
insurance coverage for yourself. But you may find that there are
advantages in either the insurance benefits or tax benefits of having a
small business plan. And again, you have a benefit that you can use to
attract and retain employees.
3. You have no health insurance.
If you don't have anything, then you can start with either
individual, or small group coverage. As an individual, you may be
medically underwritten and have either be uprated or denied in states
that don't have community rating. As a small business, you'll be able
to guarantee coverage for yourself and any employees even if you have a
significant medical condition.
Keep in mind that small business coverage requires more time and
effort than individual or employer coverage. Annual reporting and
shopping for new coverage each year are examples of the time
commitment. Your rates for the small business health insurance will
also go up each year based on how much healthcare the people covered on
the policy consume. If someone has a major operation on the plan, the
rates may increase significantly at renewal, and you'll need to shop
for new coverage. It happened 7 years ago at the startup where I was
working.
-Jonathan
Author, Get a Good Deal on Your Health Insurance Without Getting Ripped-Off
ISBN: 978-0-9794-7810-9
www.BestHealthInsuranceBook.com
I truly appreciate your response to my question, as I am currently running a home based business, and I am in the process of transferring this home based
business into a commercial building.
So, I wanted to apply to my situation, as I am preparing for this move, to determine whether or not it is necessary.
But I must admit, when I consider your response, it does seem like I should prepare myself to face a consistent complicated process if I do choose a small business health insurance plan.
I n the meantime, I am looking for a small business loan, and I am in research mode. So, any suggestion or validated recommended resources will be greatly appreciated.
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| Nov. 12 2007 at 3:08 AM |
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Roblue wrote:
Roblue wrote:
[QUOTE=JonathanPletzke]
I think that there are a lot of answers to this question, and the perspective of others would be valuable. I think the answer depends on what you currently have for health
insurance. You could do it sooner or later depending on your cashflow,
how much time and effort you can devote to managing benefits, and the
health status of everyone that your small business plan might cover. Let's consider three typical starting points for entrepreneur health insurance: 1. You are at you employer before leaving, or have taken the COBRA continuation from your employer. In this case you are part of an employer's group policy. If you are
young and healthy, then you could buy your own individual insurance,
which in many cases could cost significantly less than paying the COBRA
continuation premium from your employer. However, if you have a medical
condition, and as pointed out in my previous post, the severity of the
condition is determined by the insurer based on the laws in your state,
you may want to jump right into your own guaranteed issue small
business policy. In some cases, being incorporated or an LLC makes it
easier to get more choices in small business health insurance. Then you
have the coverage for yourself right away, along with a benefit that
you can use to attract and retain employees.
2. You have your own individual health insurance (with or without family) that you've bought yourself. In this case you've bought health insurance either as an individual
policy in your state, or as part of an association that is either in
your state or another state. Since you're covered already as an
individual, you may continue with this coverage as long as you are
happy with it. You don't ever have to get small business health
insurance coverage for yourself. But you may find that there are
advantages in either the insurance benefits or tax benefits of having a
small business plan. And again, you have a benefit that you can use to
attract and retain employees.
3. You have no health insurance. If you don't have anything, then you can start with either
individual, or small group coverage. As an individual, you may be
medically underwritten and have either be uprated or denied in states
that don't have community rating. As a small business, you'll be able
to guarantee coverage for yourself and any employees even if you have a
significant medical condition. Keep in mind that small business coverage requires more time and
effort than individual or employer coverage. Annual reporting and
shopping for new coverage each year are examples of the time
commitment. Your rates for the small business health insurance will
also go up each year based on how much healthcare the people covered on
the policy consume. If someone has a major operation on the plan, the
rates may increase significantly at renewal, and you'll need to shop
for new coverage. It happened 7 years ago at the startup where I was
working.
-Jonathan
Author, Get a Good Deal on Your Health Insurance Without Getting Ripped-Off
ISBN: 978-0-9794-7810-9
www.BestHealthInsuranceBook.com
JonathanPletzke wrote:
I think that there are a lot of answers to this question, and the perspective of others would be valuable. I think the answer depends on what you currently have for health
insurance. You could do it sooner or later depending on your cashflow,
how much time and effort you can devote to managing benefits, and the
health status of everyone that your small business plan might cover. Let's consider three typical starting points for entrepreneur health insurance: 1. You are at you employer before leaving, or have taken the COBRA continuation from your employer. In this case you are part of an employer's group policy. If you are
young and healthy, then you could buy your own individual insurance,
which in many cases could cost significantly less than paying the COBRA
continuation premium from your employer. However, if you have a medical
condition, and as pointed out in my previous post, the severity of the
condition is determined by the insurer based on the laws in your state,
you may want to jump right into your own guaranteed issue small
business policy. In some cases, being incorporated or an LLC makes it
easier to get more choices in small business health insurance. Then you
have the coverage for yourself right away, along with a benefit that
you can use to attract and retain employees.
2. You have your own individual health insurance (with or without family) that you've bought yourself. In this case you've bought health insurance either as an individual
policy in your state, or as part of an association that is either in
your state or another state. Since you're covered already as an
individual, you may continue with this coverage as long as you are
happy with it. You don't ever have to get small business health
insurance coverage for yourself. But you may find that there are
advantages in either the insurance benefits or tax benefits of having a
small business plan. And again, you have a benefit that you can use to
attract and retain employees.
3. You have no health insurance. If you don't have anything, then you can start with either
individual, or small group coverage. As an individual, you may be
medically underwritten and have either be uprated or denied in states
that don't have community rating. As a small business, you'll be able
to guarantee coverage for yourself and any employees even if you have a
significant medical condition. Keep in mind that small business coverage requires more time and
effort than individual or employer coverage. Annual reporting and
shopping for new coverage each year are examples of the time
commitment. Your rates for the small business health insurance will
also go up each year based on how much healthcare the people covered on
the policy consume. If someone has a major operation on the plan, the
rates may increase significantly at renewal, and you'll need to shop
for new coverage. It happened 7 years ago at the startup where I was
working.
-Jonathan
Author, Get a Good Deal on Your Health Insurance Without Getting Ripped-Off
ISBN: 978-0-9794-7810-9
www.BestHealthInsuranceBook.com
I truly appreciate your response to my question, as I am currently running a home based business, and I am in the process of transferring this home based
business into a commercial building.
So, I wanted to apply to my situation, as I am preparing for this move, to determine whether or not it is necessary.
But I must admit, when I consider your response, it does seem like I should prepare myself to face a consistent complicated process if I do choose a small business health insurance plan.
I n the meantime, I am looking for a small business loan, and I am in research mode. So, any suggestion or validated recommended resources will be greatly appreciated.
Have you tried www.thesnaploan.com.
I've used it with great success when I was starting up my business. Perhaps, you'll find them a good source to start with.
I know it did.
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| Nov. 19 2007 at 5:29 PM |
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In fact,
I have tried www.thesnaploan.com. It was recommended in another forum, where I posed a question requesting resources for individuals who were interested in start up loans with no collateral.
It actually worked out fine. I was approved for a startup loan in the amount of $100,000. I am really grateful for the suggested link. This forum offers priceless information that is not only practical but also accurate.
I questioned the COBRA insurance scheme because I wanted to ensure that my newly established commercial location is adequately prepared to partake of a very competitive business industry.
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