Artists Health Insurance
Tuesday, January 13th, 2009Reposted from old blog. Please bookmark.
Freelance artists often go without health insurance. They have no employers to provide it, or claim they cannot afford it.
Here’s a great online resource for artists and other self employed people seeking health insurance. Just click on the map of your state, and a comprehensive listing of available organizations and insurance options will be made available to you. This goes for artists of all kinds, but also applies to low income families, the disabled, etc. Please bookmark this.
In the last week, I have read a number of creators and people in the industry posting ill-informed items about the lack of health insurance options for the self employed and for creators in particular. One woman flatly stated that the only reason she had never quit her job and started her own company was because she knew self employed people could not get insurance. This is simply false.
As a self employed person, I have never been unable to get health insurance, and when I started out, was only paying about $134 a month. For those who fear giving up insurance while just leaving school or a job, there are companies that also offer affordable short term health insurance that can run from 30 days to 6 months.
Don’t think you can’t afford insurance and then give up seeking it without even trying to look though this site.
Some organizations offer a flat health insurance fee to ALL members. I used to belong to the National Association for the Self Employed and all members paid the same rate. I have read many complaints about the NASE plan, and left them many years ago, having no complaints myself.
I got an even better deal with Anthem/Blue Cross Blue Shield for comprehensive health care, including dental insurance, for $200 a month.
I had no problems with the NASE, I simply get what I need elsewhere. The Graphic Artists Guild suited my needs more. I recommend you seek out both and make your own decision. You may want to belong to both. I did for awhile.
Just go to the insurance resource website and click on the state in which you live. You will then see a long list of options. Don’t just study one category such as “graphic artists”. Also look under “self employed”, “visual arts” and other categories. You’d be surprised how many categories may apply to you, even when you live in places you may think don’t have resources that suit the needs of creators. EVERY state has resources for you.
Since I live on a farm, if need be, I could also qualify under several categories for income assistance and insurance for farmers. So, be sure to check out a variety of categories.
Check out the United States Federation of Small Business, which comes with many benefits, yet costs only $100 to join. The Graphic Artist Guild health plan is administered, in part, through this organization. By all accounts, this is a good plan. I just ran the numbers for a friend who was sure he could not get health insurance, and one inquiry gave us a quote of only $145 a month, easily within his budget. That’s less money per month than he spent going to San Diego Comic Con in one fell swoop, that’s for damn sure.
Over half of all Americans get some kind of government assistance. They may be businesspeople, or farmers, or low income families. Regardless, you pay taxes for a reason. This is your money. There are many government assistance plans listed on the site. Please avail yourself of these services, if you genuinely need them. That is what they are there for, and you paid for them.
Don’t assume that because you are low income, you don’t have resources.
By the way, don’t expect insurance to pay for every case of the flu and every little illness. This kind of thinking keeps premiums high. Go for the absolute HIGHEST deductible you can afford. Insurance is supposed to cover you in case of catastrophic illness. You are paying that premium in the event that someday you are going to have a major case of cancer or something.
Try to keep your deductible high and then sock the extra money you save on the premium every month away in a money market plan or some other savings vehicle. You will have a better return in your insurance investment that way. By taking a high deductible, I save about $75 a month, or $900 per year. $900 a year more than covers whatever out of pocket I may have, and in ten years at 9% compound interest, that’s a savings of $16,828. That’s more than three times the size of my deductible, so on the off chance I do get a major illness and need out of pocket cash, I will have it, as well as a reserve.
Also, look into a health savings plan. I did not know about these until recently, and they were signed into law in 2003. These are like IRA savings accounts for people who opt for low cost, catastrophic insurance plans, and back them up with these savings accounts. The deposits are tax free, and as long as the funds are used to pay for your qualifying medical expenses, they remain tax free. If you are a relatively healthy person at this time, these are a great option to consider.
There are different considerations for the employed and the self employed, so do some research.
What Is a “High Deductible Health Plan” (HDHP)?
You must have an HDHP if you want to open an HSA. Sometimes referred to as a “catastrophic” health insurance plan, an HDHP is an inexpensive health insurance plan that generally doesn’t pay for the first several thousand dollars of health care expenses (i.e., your “deductible” but will generally cover you after that . Of course, your HSA is available to help you pay for the expenses your plan does not cover.
For 2005, in order to qualify to open an HSA, your HDHP minimum deductible must be at least $1,000 (self-only coverage) or $2,000 (family coverage). For 2006, the amounts increase to $1,050 and $2,100, respectively. The annual out-of-pocket (including deductibles and co-pays) for 2005 cannot exceed $5,100 (self-only coverage) or $10,200 (family coverage). For 2006, these amounts increase to $5,250 and $10,500, respectively. HDHPs can have first dollar coverage (no deductible) for preventive care and apply higher out-of-pocket limits (and co pays & coinsurance) for non-network services.
But remember, a self employed person who is paying out of pocket for their own health insurance enjoys a 50% tax deduction. Be sure to calculate your tax savings as a deduction from the cost of your insurance.
For example, if you can’t afford $200 a month, remember that $100 of your insurance payment is not taxable. Say you are being taxed at 20%. That’s $20 a month. So your actual insurance cost is only $180 a month.
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