Tips for Cutting Self Employed Health Insurance Costs
It's no secret that rising health care costs are handcuffing small-business owners and their employees in this country, forcing many to forego health coverage just to keep their businesses viable. In 2005, premiums for employer-sponsored health insurance rose to an average of $10,880 annually for family coverage ($907 per month) and $4,024 ($335 per month) for individual coverage. The National Association for the Self-Employed (NASE) wants micro-businesses ? those with ten or fewer employees ? to know that there are steps they can take to gain control of their health care costs.
"The key for those who are self-employed is to learn how to become educated health care consumers," said Kristie Darien, executive director of NASE's legislative office. "That means being able to evaluate their own health care needs, seek out appropriate resources, ask the right questions, learn about and investigate available insurance options, and generally, take an active role in managing their health care environment."
One way to reduce costs is to comparison shop for rates and benefits. It?s easy to shop online for self employed health insurance quotes by visiting insureme.com. This Web site links you to self employed health insurance providers in your area who will compete for your business.
To help micro-business owners become better educated, NASE has launched a new consumer-driven health care initiative, called Your Health, Your Choice, which offers these ten tips for cutting health care costs:
1. Take Advantage of Tax Breaks.
Self-employed business owners should consider a health reimbursement arrangement (HRA). With an HRA, medical expenses are fully deductible if a spouse works part-time or full-time in the business.
2. Search for Free or Low-Cost Services.
Look for valuable free or low-cost programs at local pharmacies, government centers, etc. that can help cut costs and avoid trips to the doctor.
3. Get Healthy.
Quit smoking, exercise more and lose weight.
4. Get Informed.
Check your health plan to see what's covered before getting treatment. Know your health insurance plan's rules and then follow them.
5. Practice Self Care.
Tend to minor ailments and illnesses at home first. If the situation worsens, then call your physician.
6. Plan Ahead.
To avoid going to an out-of-plan hospital and having to pay emergency expenses, post your plan's approved area hospitals near your telephone, along with any emergency phone numbers.
7. Avoid Unnecessary Medical Tests.
Make sure doctors are ordering tests for the right reasons, not just to minimize risk of malpractice lawsuits.
8. Cut Pharmacy Costs.
Lower pharmacy costs by asking your doctor to only prescribe drugs in the bottom two, less expensive tiers of the three-tiered co-pay system for prescription drugs.
9. Raise Your Deductible, Co-pays, or Coinsurance.
The higher a plan's deductible, co-pay, or coinsurance, the lower premium payments will be. Be careful not to put out-of-pocket expenses beyond reach.
10. Find a Subsidy.
If you or a family member is in a low-income situation, uninsured or disabled, you or they may qualify for low-cost health insurance through a state or federal program such as Medicaid or Medicare. The State Children's Health Insurance Program covers doctor visits, immunizations, hospitalizations and emergency room visits for little or no cost.
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About the NASE
The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's Web site at www.nase.org.
"The key for those who are self-employed is to learn how to become educated health care consumers," said Kristie Darien, executive director of NASE's legislative office. "That means being able to evaluate their own health care needs, seek out appropriate resources, ask the right questions, learn about and investigate available insurance options, and generally, take an active role in managing their health care environment."
One way to reduce costs is to comparison shop for rates and benefits. It?s easy to shop online for self employed health insurance quotes by visiting insureme.com. This Web site links you to self employed health insurance providers in your area who will compete for your business.
To help micro-business owners become better educated, NASE has launched a new consumer-driven health care initiative, called Your Health, Your Choice, which offers these ten tips for cutting health care costs:
1. Take Advantage of Tax Breaks.
Self-employed business owners should consider a health reimbursement arrangement (HRA). With an HRA, medical expenses are fully deductible if a spouse works part-time or full-time in the business.
2. Search for Free or Low-Cost Services.
Look for valuable free or low-cost programs at local pharmacies, government centers, etc. that can help cut costs and avoid trips to the doctor.
3. Get Healthy.
Quit smoking, exercise more and lose weight.
4. Get Informed.
Check your health plan to see what's covered before getting treatment. Know your health insurance plan's rules and then follow them.
5. Practice Self Care.
Tend to minor ailments and illnesses at home first. If the situation worsens, then call your physician.
6. Plan Ahead.
To avoid going to an out-of-plan hospital and having to pay emergency expenses, post your plan's approved area hospitals near your telephone, along with any emergency phone numbers.
7. Avoid Unnecessary Medical Tests.
Make sure doctors are ordering tests for the right reasons, not just to minimize risk of malpractice lawsuits.
8. Cut Pharmacy Costs.
Lower pharmacy costs by asking your doctor to only prescribe drugs in the bottom two, less expensive tiers of the three-tiered co-pay system for prescription drugs.
9. Raise Your Deductible, Co-pays, or Coinsurance.
The higher a plan's deductible, co-pay, or coinsurance, the lower premium payments will be. Be careful not to put out-of-pocket expenses beyond reach.
10. Find a Subsidy.
If you or a family member is in a low-income situation, uninsured or disabled, you or they may qualify for low-cost health insurance through a state or federal program such as Medicaid or Medicare. The State Children's Health Insurance Program covers doctor visits, immunizations, hospitalizations and emergency room visits for little or no cost.
________________________________________
About the NASE
The National Association for the Self-Employed (NASE) is the nation's leading resource for the self-employed and micro-businesses, bringing a broad range of benefits to help entrepreneurs succeed and to drive the continued growth of this vital segment of the American economy. The NASE is a 501(c) (6) nonprofit organization and provides big-business advantages to hundreds of thousands of micro-businesses across the United States. For more information, visit the association's Web site at www.nase.org.
