Saturday, February 12, 2011

Heallth insurance for the self employed?

I need dental and health insurance for an affordable price. I am unmarried.... what can I do? who offers it? how much will it cost?
--------------------
As a self employed individual, you should do some reading on Health Savings Account qualified plans - I have posted an article I wrote earlier this year titled - The five reasons why the Nevada self-employed should look at HSA qualified plans in 2007 HSA Qualified Health Plans work by coupling a Qualified High Deductible Health Plan (Q-HDHP) with a Tax Advantaged Health Savings Account. The funds deposited to the HSA can be utilized to pay for Qualified Medical Expenses on a tax-free basis and balances roll over from year to year. The minimum Q-HDHP deductibles are $1,100 for single and $2,200 for family coverage. When coupled with 100% co-insurance plans they can significantly reduce the annual maximum out of pocket cash when compared with traditional Co-pay plans. This is especially true when discussing family plans where there may be deductibles for each family member. The Q-HDHP plans utilize family deductibles where one or multiple family members' medical costs go toward a single deductible. Reason One - Q-HDHP's can reduce the insured's total liability when it comes to maximum out of pocket expenses. One of the more popular $500 deductible Nevada plans has an annual maximum out of pocket of $3,500 - for a family on this plan; the maximum out of pocket is $7,500. In addition, once the maximum annual out of pocket is reached, the insured still pays co-pays for physician's office visits and prescription drugs. With a Q-HDHP, the more popular "single deductible" plans can offer maximum out of pockets as low as $1,100 for individuals and $2,200 for families. In addition, once the deductible is satisfied, all covered expenses are paid by the plan; including prescription drugs. Reason Two - For the self-employed; health insurance premiums are 100% tax deductible. However, in order to deduct your qualified medical expenses they have to exceed 7.5% of the insured is Adjusted Gross Income (AGI). Because the funds deposited into the HSA are 100% tax deductible, the insured now gets first dollar tax deductibility of their qualified medical expenses. In addition to routine medical care, some examples of Qualified Medical Expenses are; Dental treatments, Eyeglasses, Fertility enhancement, Lodging, COBRA Payments and LASIK Eye Surgery to name a few. Reason Three - In 2006, the insured was required to have a Q-HDHP for a full year in order to fully fund an HSA. Thanks to the 109th Congress and President Bush, this is no longer a restriction. In 2007, a single person can now contribute up to $2,850 and a family can contribute up to $5,650, regardless of the deductible selected or when the insured obtains the Q-HDHP. Individuals who are 55 and older can make additional catch-up contributions of $800 to their HSA in 2007. Reason Four - Nevada has over 120,000 self-employed individuals. The first few years of being self-employed are the most difficult when it comes to cash flow. The IRS is now allowing a one time "penalty free" funding of Health Savings Accounts by rolling funds from an IRA into an HSA. In order to avoid penalties, this must be a trustee-to-trustee transaction. This can free up as much as $470 in monthly cash flow for a family in their mid forties with two teenage children. Reason Five - Many local banking institutions are now offering Health Savings Accounts. This makes it easier than ever for the self-employed to manage their Nevada Health Savings Account related finances. No longer does the insured have to use an HSA trustee that is located outside of the state of Nevada; making it painless to deposit and access funds that are necessary to pay for Qualified Medical Expenses.
Source

No comments:

Post a Comment