I had a look around some of the more popular ‘comparison shopping’ sites e.g. InsuranceChaser.com and www.ehealthinsurance.com but came away more confused than educated. I’m 49, my wife is 44 and we have 3 young children. We’re all healthy, with no history of existing medical conditions. Since we don’t often go to doctors or take perscription medications, I’m willing to pay up to $5K / yr out of pocket and up to $650 / month premiums. The idea is not to be ruined financially in case something unforeseen comes up. Any suggestions ? How much of the premiums can I deduct from taxes if I’m in a 28% tax bracket ? Please – no solicitations, only personal stories. Thanks !
Best kind of health insurance for self-employed contractor in Ohio?
20
May
ben_3600
May 20, 2010 at 10:52 am
First!
mbrcatz17
May 20, 2010 at 11:48 am
I really don’t think this is something you should do on your own. An independent, LOCAL agent (not me, I’m in TX) can sit down with you, go over your plan options, and see if he can find something in your budget – thus clearing out some of that confusion.
Although I don’t think you’re going to find something for that price, honestly, even with a $5K family deductible.
I do NOT recommend discount plans, and I’m sure you’ll get lots of spam for them, with this question. But one thing you might want to consider – http://medi-share.org/ it’s NOT INSURANCE, but a major medical expense sharing program. Just look into it.
On that tax question – I thought if you were self employed, ALL your premium can get written against your income, but that’s really a TAX question, so you should check with a tax expert.
Insure Man
May 20, 2010 at 12:08 pm
My best advice is to work with a knowledgeable agent who offers health insurance plans in Ohio. The comparison sites are nice, but don’t really drill down to the basics like a conversation can.
We offer health plans here in Ohio – if you want to talk give us a buzz – or you can look through the health insurance plans on your own here:
http://www.ohioinsureplan.com/index.php/insurance/carrier-quotes/
My experience is that UHC is most affordable right now, Anthem has the most forgiving underwriting and Aetna, Med Mutual, and Assurant are somewhere in between.
Bradley S
May 20, 2010 at 12:59 pm
Since you are self-employed, you might consider enrolling in a “qualified” High Deductible Health Plan (HDHP). This is health insurance with high deductible amounts, so it costs less than traditional health insurance. Under federal law, the minimum deductible in a HDHP plan is $1,100 for an individual and $2,200 for a family. The maximum deductibles are $5,500 for an individual and $11,000 a family.
The advantage of an HDHP is that you can shelter up to $2,850 for an individual or $5,650 for a family per year from state and federal taxes in a Health Savings Account (HSA). Depending on your tax bracket and where you live, that could save you as much as $2,870 in taxes per year, assuming a combined tax rate of 50.8%—7.5% in state income tax (Ohio), 28% in federal income tax, and 15.3% in self-employment Federal Insurance Contributions Act (FICA) tax. Another way of looking at it is that the HSA doubles your buying power, since you are using pre-tax dollars. The contributions you make to an HSA are yours to keep, rolling over each year. The funds are not taxed, provided you use them to pay medical expenses or withdraw them after age 65. The funds earn interest on a tax-deferred basis. Think of it as an IRA that you can use to pay out-of-pocket medical expenses.
To find a qualified plan, speak with a health insurance broker. A broker works with several insurers and can find the best plan, rates and coverage for the monks. To find a broker, log on to a website like http://www.healthinsurancewiz.com and fill out a form requesting a free quote. Your information will be sent to a broker in your area who will contact you. Good luck!