Don't let health insurance cost factors and private health insurance restrictions keep you in a dead end job.
Health insurance cost factors can be a significant damper when it comes to expanding the workforce of a small business. Many individuals working at corporations take for granted the very expensive benefit health insurance has become. For large percentages of individuals working at small businesses, private health insurance is a reality. While many small companies will insurance the individual, the cost of family care health insurance most often falls on the shoulders of the employee.
For individuals under a corporate health insurance plan and are considering leaving for a smaller firm or starting their on business, consider these factors:
Private Health Insurance
One of the best benefits of being on a corporate health insurance plan is that to a great extent they have to take you. The large amount of individuals in your company's plan help to spread the risk and as a result empowers the company the company's position when searching for a provider.
There are many companies that provide information and the ability to purchase health insurance online. Various plans can be compared in terms of price, benefits, exclusions and coverage.
When it is just you and your family seeking health insurance the tables are turned. Be prepared to be asked everything regarding your medical history, prescriptions, weight, mental health status, etc. All of these factors will determine if they choose to underwrite a policy for you.
COBRA
While expensive, it may make financial sense if your deductibles have already been met and your prescription and provider usage is frequent. Furthermore, depending on your corporate health plan, you may be able to pick and choose the options you keep. For instance if you would like to keep the Dental portion of your plan to avoid the 6 month pre-existing waiting period of a new plan COBRA would be very beneficial.
The price of COBRA depends on several factors, but is often based on the level of benefits your existing plan delivers. To a lesser degree the negotiation ability of your existing company's benefits department will also factor in.
In the end you bear the difference between the payroll deduction and employer contribution. This is one of the few instances where you hope they were stingy on their contributions!
It is important to note that COBRA must be elected within 60 days of your last day of coverage. You can wait until the last moment, but you will have a shocking surprise when you receive a bill for those 60 days prior to making your decision.
Get a part-time job
Many companies offer health care benefits for those who work part time or more. Many people already work solely for employee discounts on merchandise so the added benefit of health coverage could be rather enticing. If you, your spouse or significant other has a need for health insurance this could be an option.
Rejected by a private health insurance company?
It happens quite often, so here are some options after a rejection.
Let's say for instance that one or more members of your family are rejected for whatever reason. At this point you still have many options. You can apply for another plan with a different provider, choose to go COBRA or mix and match the two.
Much like the previously mentioned Dental-only option you may find it possible to use COBRA for the individual who was rejected for private health insurance. This may prove to be a good option if the remaining family members are covered under the private plan. Keep in mind that COBRA is good for a maximum of 18 months so view this only as an interim solution.
It's important not to give up if you find yourself rejected by one or more private health insurance providers. Some may find it easier to be approved for a high deductible with an HSA option. (HSA stands for Health savings account.) Regardless of the plan you choose, make every effort to avoid any gaps in coverage if you have a condition that an insurance provider could label as preexisting.
Leaving an established job or striking out on your own can be a daunting proposition. We hope you have found this to be a beneficial source of information.
