Self-Employed and Increasing Medical Costs
Jan 7th, 2010
The cost of medical insurance coverage is pricing many individuals and the self-employed away from the insurance industry. The benefits keep changing and the self-employed entrepreneur winds up receiving less medical coverage with higher and higher premiums.
The list of preconditions is not only growing longer, but it keeps changing so that the individual no longer has any idea of what falls under pre-conditions. Trying to locate affordable health insurance is almost out of the question anymore and this is a shame.
However, even in a difficult and ever changing economy there are still a few ways for the self-employed to locate medical insurance at an annual premium that fits the small business pocket. Pinching pennies to save a few dollars per month on the monthly premium and sacrificing beneficial coverage is like walking on ice and hoping it will hold your weight.
The best choice available is for the self-employed to search out the differences in benefits, coverage, and cost with the more reputable well-known insurance companies. Sometimes to buy into an insurance plan with a company not familiar might cause you more grief rather than less. The average monthly cost for health insurance is the bottom line and there is very little indication about the type of coverage received. Some of the more important aspects to concern your self with are the following.
1. Co-pay, which is a fixed amount paid for services rendered
2. Deductible, which is the flat rate the individual is responsible
3. Co-insurance, which is that part responsible by the insurance provider
4. Out of pocket maximum, which is the maximum paid by the insured
5. Limitations, which concerns pre-conditions and other limits
Health insurance coverage is explainable in details regarding the pros and cons of various health companies. Many self-employed will find themselves debating which way is the better way to go. Should they stay with the individual health insurance policies or should they try looking in a small business group insurance. Sometimes the choices can be very difficult.
Those who are self-employed and perhaps trying to operate a small business in their community will prefer the option of a high deductible. This is a trade off because in exchange they will be paying a lower rate on their monthly premiums. However saving up a little money to help cover the cost of major emergencies like a long hospital stay may be very wise.
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