Keeping Your Health Insurance Premiums Low

Health Savings Accounts offer tax deductions for medical expenses, and the opportunity to set up additional retirement accounts. But regardless of any other positive benefit of HSAs, lower premiums are the primary reason that thousands of Americans have chosen Health Savings Accounts as the best way to protect their family's health and assets. So I'd like to talk about some key suggestions on how to keep your premiums low.

1. Choose an HSA-qualified plan for lower rate increases.

Average group health insurance premiums rose by 9.6% last year and rose over 10% for each of the previous six years. Individual plans went up even more. Yet I expect most HSA plans to experience much lower rate increases. A very large study was recently published showing that rate increases over the past year for consumer driven health plans such as HSA plans was only 3.4%. Blue Cross of Minnesota has reported that its HSA customers spent 8% less than their traditional insurance clients. Humana has reported claims' costs of 4.9% for consumer-driven plans, versus a 19.2% increase in claims for other plans. In fact, average HSA premiums for individuals have actually dropped 19.5% during 2005.

The reason these plans will have lower rate increases is that people who have HSA-qualifying high deductible health insurance plans are likely to pay closer attention to costs, and take better care of their health. For instance, an HSA owner offered a statin drug to lower her cholesterol may be more likely to request a generic version, or ask her doctor if inexpensive nutritional supplements such as niacin or fish oil may be a solution. These actions save the insurance company money and should result in lower rate increases.

2. Raise your deductible as your Health Savings Account grows.

When you fund your account you build up a financial "cushion" which allows you to raise your deductible as your account grows. Every time you raise your deductible, your premium should go down.

By the way, don't forget that every time you fund your account you get an instant tax-deduction. When you offset the tax savings against your premiums, you'll find your net cost for an HSA plan can be very low.

The maximum allowable contribution goes up every year with the rise of the Consumer Price Index. Final numbers are not out yet, but in 2006 we expect the individual contribution limit to go up to $2,700, and the family limit to be $5,450. So each year you can deposit greater amounts into your HSA and continue to raise your deductible, if you choose.

3. Stay healthy, so you can switch plans.

All health insurance plans have rate increases, and we've even seen premiums jump on some HSA plans. If a rate increase happens to you, you can switch to a different insurance company - but only if you pass their underwriting requirements. If chronic disease develops, you may be stuck with your current plan, and its accompanying rate increases, for eternity. Or at least it may seem that long...

If you pay attention to the pharmaceutical commercials, you learn lifestyle really has nothing to do with disease, and it is natural and healthy to be on many medications for the rest of your life, which will then solve your health problems.

If you pay attention to the science, you know the truth is quite different. It appears lifestyle is probably 95% of the picture, and we know the occurrence of degenerative disease can be dramatically reduced and even prevented.

Fortunately, I've found many of our customers are interested in wellness, and disease prevention. After all, they're paying for their own doctor visits if they do get sick. I also believe it is because HSA owners are "forward thinking" people, and like to plan for their future - both financial and physical. You can improve your odds of excellent health with just a few key habits:

Eat very high quantities of fresh vegetables and fruits. Shoot for 35% of your calories. This will lower your risk for diabetes, high blood pressure, heart disease, cancer, and more.

Limit your intake of sugar and starchy carbohydrates like bread and pasta. The majority of health problems in the U.S. are related to metabolic diseases that involve insulin resistance.

Exercise and lift weights. Exercise guru Jack La Lanne just turned 92 on September 26, and he says if you have muscles you never feel old.

4. Compare your plan to other available plans at least once a year, or whenever you get a rate increase.

Often-times people keep their plan much longer than they should, and end up paying much more than they should. If your rates go up, you can compare a wide variety of plans at http://www.HSAforAmerica.com/instant-quote.htm. If you have your coverage through HSA for America, we automatically do this analysis of available plans for you any time we are notified of rate increases.

To your health and wealth,

Wiley Long President - HSA for America

Lack Of A Health Insurance Policy Invites Financial Disaster.

In 2003 health care spending rose four times the rate the inflation. The annual premium for an employer health plan covering a family of four averaged nearly $10,000. The cost of medical care continues to rise at the fastest rate in history.

Health insurance premiums will rise to an average of more than $14,500 for family coverage in 2006.

Surveys reveal that the number one reason many people have no coverage is because health insurance is too expensive. 23% percent of people who do have health insurance have had to drastically change their spending habits so that they could make the insurance payments.

You've read about the rise in the number of bankruptcies. A study shows that the average medical debt of those who filed for bankruptcy is $12,000... And 50% of bankruptcy filings were partly the result of medical expenses. Every minute two people in the U.S. file for bankruptcy because of serious medical problems.

Research shows that even when one member of a family is uninsured and requires a hospital stay, or costly medical treatment, the medical bills can effect the financial position of the entire family as they try to help with costs. Government officials agree that health care costs must be controlled, but they continue to argue about how to do it. Some say it must be done with price controls and by imposing strict budgets on health care spending. Others cry for free market competition as the solution to the high cost of medical care.

An important step in the right direction would have all of us adopting healthy eating habits and lifestyles. We all would require less medical care and those costs would drop.

For individuals and families is vital that you have at least some form of health insurance policy. It may be sensible to keep your health insurance cost as low as possible by having coverage for only a catastrophic illness. The expense of most medical treatment can be paid for over time. It is the unexpected major, life threatening injuries and diseases that can wipe you out financially.

One thing is certain. To protect your financial future you must have at least some type of health insurance policy.

Mark Walters presents an online guide to health insurance of kinds at http://www.HealthInsuranceMonster.com

How to Find Affordable Health Insurance

Affordable health insurance - it seems, especially today, those words just don't belong together in the same sentence. Health insurance monthly premiums have become the biggest single expense in our lives - surpassing even mortgage payments. In fact, if you have any permanent health problems, such as diabetes, or have had cancer at one time in your family history, your monthly cost could easily be more than the house and car payment combined.

Shopping for affordable health insurance can certainly be an eye-opener. If you have always had a health insurance benefit where you work - especially a state or federal employee - and now have to buy your own, you may not be able to afford the level of health insurance coverage you have become used to.

Affordable health insurance, however, is definitely available -if you know how and where to look.

When you are looking for affordable health insurance, you want the lowest cost per year that will fit your budget, of course. But, even more importantly, you want a company that has a good record for paying without fighting with you on every detail. Just as there is a car for just about any budget, there is also affordable health insurance. You may not be able to afford a "Cadillac" policy - but then you probably don't need all the frills anyway.

Shopping for health insurance on the internet is the easiest and best way to find affordable health insurance. Here are five reasons why.

1. You don't need a local agent to help you submit the claims for health insurance. The medical provider does it for you. You save money because the health insurance company saves money by not paying the agent commission. This could amount to an 8% to 12% savings to you.

2. All the top health insurance companies are at your fingertips on the internet. Most local agents can only quote you from the few companies that they represent. They may not offer you what is best for you financially or health-wise but only what they happen to have available.

3. Health insurance companies have to be extremely competitive because it is so quick and easy to compare them with their competitors on the internet today. In the past you would have had to visit physically eight to ten agents to do a similar comparison. Most folks just didn't have the time or desire for that.

4. You can change your coverage, deductibles, and payment options with just a few clicks rather than going through the paperwork delay with a local agent (and then finding out he/she made a mistake - more delay).

5. Charging to a credit card means you aren't going to forget a payment and be without insurance. Also, it gives you another 30 days before you actually have to pay. Also, many companies today give an additional discount for "auto-pay".

The key, however, to finding affordable health insurance is realizing that the purpose of any health insurance is to protect you from a major financial loss - not to protect you from spending small money on clinic visits and sliver removal. These small expenses may be cumbersome but they generally will not hurt you. It's the $100,000 heart operation that will break you. That's the financial disaster health insurance was originally designed to prevent.

Also, keep this in mind. Health insurance, as with any insurance, is a gamble. You are gambling that you will draw out more than you pay in. Your health insurance company is gambling they will pay out less. The odds are in their favor for two reasons. They have all the facts for millions of families to average out, so they know the risk in advance. Also, they get to set the rules and the prices. The higher you set your deductible, the more risk you take. This is not a bad thing at all. You will most likely be the winner in the long run.

Yes, finding affordable health insurance is much easier than most people think.

Taking more of the risk with higher deductibles, spending a little time on the internet comparing eight to ten different companies, and deleting coverage that you will not likely need (such as maternity for many folks) will make it very possible to find your own affordable health insurance.

Dr. Deepak Dutta is the creator of SemanticBay.com - an interactive social network website based on user shared text and picture contents on any topics. Website creators, publishers, and maintainers can promote their website at SemanticBay.com using website articles. Users can join for free, invite friends, maintain buddy lists, rate contents, comment on contents and earn points.

Health Insurance for the Self-Employed - Protecting Your Business's Greatest Asset

Health Insurance for the Self-Employed
- Protecting Your Business's Greatest Asset

2002 Elena Fawkner

"I've been considering quitting my full-time job and getting a
part-time job that would pay the bills [so I can start a home
business] ... The one biggie my full-time job provides me now
is health insurance. If I was to get a part-time job, I'd probably
have to pay for my own health insurance and I know that can
be expensive."

Like Jason, who sent me the above email this week, many a
dissatisfied employee would chuck in their full-time J.O.B.
(just over broke) for their part-time home-based business in
a heartbeat if not for one thing. Employer-provided health
benefits. It's a biggie, no doubt about it.

Undeniably, employer-paid or -subsidized health benefits
are one of the few real perks of working for someone else.
In fact, surveys have shown that, for employees (especially
those with families), paid benefits are hands down the most
important element of their compensation packages.

And there's no shortage of people already running their
own home businesses with no health or disability coverage
at all. Scary. After all, if you're dependent upon your
home business as your sole source of income and you
lose your health, you lose your livelihood as well.

Bottom line? If you run a home-based business you can't
afford not to have health coverage of one form or another.
Here's how to make it happen, whatever your
circumstances.

BASIC OPTIONS FOR THE EMPLOYER OF ONE (YOU)

You have three basic options when it comes to health and
disability insurance.

=> Spouse Coverage

If your spouse has health coverage from his or her employer,
as a general rule, use that. It probably provides better and
less expensive coverage than you could get on your own.

=> Group Health Insurance

The main advantage of group health insurance plans is that
they can't turn you away because of health problems. The
good news for the solo entrepreneur is that an increasing
number of companies are offering group health plans for
"groups" of one. This varies by state though so you'll need
to do your homework to find one.

=> Individual Health Insurance

These plans are fine if you don't have any pre-existing
medical conditions. (If you do, try your best to find a group
plan that will cover a group of one.) They're subject to
medical underwriting so your state of health will be a factor
the insurance company takes into account in determining
whether to accept your application.

Of course, the mere fact that you're able to get into a good
plan is one thing. Doing so affordably is quite another.

REDUCING THE HIGH COST OF HEALTH INSURANCE

There are several ways of minimizing the cost of health
insurance. Your tolerance for risk will determine which,
if any, you are comfortable with.

=> Reduce the Level of Coverage

Do you really need to have every doctor's visit and
prescription covered? If you only go to the doctor once
a year for an annual examination, have no health
conditions, don't need regular expensive prescription
medications and are generally healthy, consider cutting out
coverage for office visits and prescriptions.

=> Higher Deductible

Similarly, if you're reasonably healthy, don't visit the doctor
very often and don't need to use expensive medications,
consider switching to a higher deductible to save on
premium costs. By increasing your deductible from $100
to $2,000, you can cut your premium payment in half.

=> Annual Premium Payments

If you can afford to do so, pay your premiums annually
rather than monthly or quarterly to avoid service fees and
to take advantage of prepayment discounts where
available.

=> Join Associations

Just because you're going it alone in your business
doesn't mean you can't take advantage of the group
buying power that being a member of an association
offers. Check out your local chamber of commerce,
various trade and professional groups and small and
home business associations for member benefits. Many
offer access to discounted health insurance.

Here are a few small/home business association links
to get you started (you'll need to cut and paste some
of these links if they wrap to the next line):

National Association for the Self-Employed
http://www.nase.org/nase_benefits/health_benefits.asp
American Association of Home-Based Businesses
http://www.aahbb.org/benefits.htm
Home Office Association of America
http://www.hoaa.com/allbenefitsnew.htm
National Business Association
http://www.nationalbusiness.org/NBAWEB/Directory/Internal_Pages/Member_Benefits/Health.htm

Don't forget to check out local associations in your area
or associations relevant to your particular profession.

=> Shop Online

Being able to offer insurance products online means insurance
companies save on broker and agent fees. Often, this
translates into premium savings for policies purchased over
the Internet. So, when your fingers do the walking, make
sure they do so on a keyboard and not the Yellow Pages.

=> Medical Savings Accounts

Under the Health Insurance Portability and Accountability
Act (HIPAA), if you're self-employed you may be eligible to
use a medical savings account, or MSA.

MSAs work in conjunction with higher deductible health
insurance policies to reduce premiums and allow you to use
pre-tax dollars to pay for your medical expenses up to the
limit of the deductible on your insurance policy.

Basically, you reduce your premium by replacing a low-
deductible policy with high-deductible policy and use the
premium saving to make fully tax-deductible contributions
to your MSA. You can contribute up to 65% of the deductible
each year into your MSA (75% for families). The money goes
into a tax-deferred account or trust and you pay your medical
expenses (until you reach the deductible) by drawing from the
account. Once you hit the deductible, of course, the
insurance policy kicks in.

If you spend less than you contributed, the surplus stays
in the account and earns interest. Not only that, the funds
can be invested in high-return vehicles such as mutual funds
and stocks.

As the balance can be carried forward, an MSA can be used to
accumulate a pretty healthy nest egg for retirement. In fact,
a Journal of Financial Planning analysis calculated that if you
contribute $1,500 per year into an MSA for 25 years, assuming
a 12% rate of return, you'll end up with almost $1.5 million.
That's assuming you don't draw from it to pay for medical
costs, of course.

There are some limitations though. First, the range of
deductibles is limited to $1,500 - $2,250 for individuals and
$3,000 - $4,500 for a family. Second, as we saw above, you
can contribute only 65% of the deductible as an individual or
75% for a family.

So, if you're an individual and you choose a policy with a
$2,000 deductible, you'll be able to contribute 1,300 pre-tax
dollars into an MSA each year. In other words, Uncle Sam
pays for part of your health insurance/retirement fund. How
fitting.

The money in the MSA can be used to pay any medical
expenses incurred before the deductible is reached, as well
as other eligible costs such as contact lenses and dental
work. If you use the money for anything else, you must not
only pay tax on the amount withdrawn, but a 15% penalty
on the top. (If you're over 65 when you make the
withdrawal the penalty is not applied but you'll still have to
pay the tax.)

(By the way, MSAs are also available to you if you work for
a business with fewer than 50 employees.)

In short then, MSAs offer a very tax-effective and potentially
lucrative way to self-fund part of your health care costs while
dramatically reducing your premiums. If luck is on your side
and you remain healthy, by the time you reach retirement
age, your MSA could well fund your retirement.

Pretty neat.

=> Self-Employed Health Insurance Deduction

Finally, the self-employed can write off 70% of their health
insurance premiums in 2002. This increases to 100% in 2003.
That's only so long as the total doesn't exceed the net profit
from your Schedule C minus deductions for one half of the self-
employment tax and Keogh, SEP and Simple contributions
though.

Also, the deduction can only be claimed for months when
you weren't eligible to participate in a subsidized health plan
from another employer (including your spouse's employer).

Self-employed workers who qualify for both the self-employed
health deduction and the itemized medical deduction can
write off the other 30% this year on Schedule A. (Medical
expenses are deductible on Schedule A only to the extent
they exceed 7.5% of adjusted gross income.)

WHAT TO DO IF YOU'RE UNINSURABLE

The foregoing is all well and good if you're able to get health
insurance in the first place. But what if you have a pre-
existing condition that disqualifies you from an individual
health plan and you can't get into a group plan? In other
words, you can't get insurance at any price.

=> HIPAA

Although beyond the scope of this article, the Health
Insurance Portability and Accountability Act (HIPAA) may
offer you some protections. For more information about how
HIPAA may help you obtain health insurance even if you
have a pre-existing condition, visit
http://www.hcfa.gov/medicaid/hipaa/content/hipsteps.asp .

=> Risk Pools

High-risk health insurance plans, also known as risk pools,
are state-funded plans and are an important safety net for
individuals who are denied health insurance because of a
medical condition. They're available only in 29 states though.

To be eligible, you must be a resident of the state from
which you seek coverage (unless there's reciprocity
between that state and the state you reside in) and
you must be able to prove at least one of the following:

1. that you've been rejected for similar health insurance
coverage by at least one insurer; or

2. you're presently insured with a higher premium; or

3. you're presently insured with a rider or rated policy.

You will not be eligible for participation in a risk pool if:

1. you're not a resident of the state from which you seek
coverage (again subject to reciprocity between states);
or

2. you're eligible for Medicare or Medicaid; or

3. you've terminated previous coverage in the plan
unless at least 132 months have since elapsed; or

4. you're an inmate of a public institution.

For more information on risk pools in your state, contact
your state health insurance department, the national
association "Communicating for Agriculture and the Self-
Employed" (1-800-432-3276) or visit
http://www.selfemployedcountry.org .

Coverage via the safety-net protections of the HIPAA may
end up being "risk-pool" coverage.

=> Healthcare Savings Programs

Healthcare savings programs are patient advocacy programs
that minimize out-of-pocket healthcare expenses.

They're not insurance policies but rather programs that allow
you to access networks of healthcare providers for the same
negotiated rates that large insurance companies enjoy.
Savings range from 20% to 50%.

Not ideal but better than nothing. Also, since they're not
insurance policies, all pre-existing conditions are accepted.

A modest monthly fee is usually required to participate.
See, for example, Care Entree at http://www.careentree.com
for $20 per month.

Although health insurance may seem like a luxury you just
can't afford if your finances are already stretched to breaking
point thanks to your home-based business, you never know
what's around the corner. Quite simply, you and your business
can't afford not to have health (and disability) insurance.

You are your business's greatest asset. Protect it.

------

** Reprinting of this article is welcome! **
This article may be freely reproduced provided that: (1) you
include the following resource box; and (2) you only mail to
a 100% opt-in list.
Here's the resource box to use if reprinting this article:

------

Elena Fawkner is editor of A Home-Based Business Online ...
practical business ideas, opportunities and solutions for the
work-from-home entrepreneur.
http://www.ahbbo.com
Also, visit Elena's newest site, Web Work From Home
http://www.web-work-from-home.com
- Protecting Your Business's Greatest Asset

2002 Elena Fawkner

"I've been considering quitting my full-time job and getting a
part-time job that would pay the bills [so I can start a home
business] ... The one biggie my full-time job provides me now
is health insurance. If I was to get a part-time job, I'd probably
have to pay for my own health insurance and I know that can
be expensive."

Like Jason, who sent me the above email this week, many a
dissatisfied employee would chuck in their full-time J.O.B.
(just over broke) for their part-time home-based business in
a heartbeat if not for one thing. Employer-provided health
benefits. It's a biggie, no doubt about it.

Undeniably, employer-paid or -subsidized health benefits
are one of the few real perks of working for someone else.
In fact, surveys have shown that, for employees (especially
those with families), paid benefits are hands down the most
important element of their compensation packages.

And there's no shortage of people already running their
own home businesses with no health or disability coverage
at all. Scary. After all, if you're dependent upon your
home business as your sole source of income and you
lose your health, you lose your livelihood as well.

Bottom line? If you run a home-based business you can't
afford not to have health coverage of one form or another.
Here's how to make it happen, whatever your
circumstances.

BASIC OPTIONS FOR THE EMPLOYER OF ONE (YOU)

You have three basic options when it comes to health and
disability insurance.

=> Spouse Coverage

If your spouse has health coverage from his or her employer,
as a general rule, use that. It probably provides better and
less expensive coverage than you could get on your own.

=> Group Health Insurance

The main advantage of group health insurance plans is that
they can't turn you away because of health problems. The
good news for the solo entrepreneur is that an increasing
number of companies are offering group health plans for
"groups" of one. This varies by state though so you'll need
to do your homework to find one.

=> Individual Health Insurance

These plans are fine if you don't have any pre-existing
medical conditions. (If you do, try your best to find a group
plan that will cover a group of one.) They're subject to
medical underwriting so your state of health will be a factor
the insurance company takes into account in determining
whether to accept your application.

Of course, the mere fact that you're able to get into a good
plan is one thing. Doing so affordably is quite another.

REDUCING THE HIGH COST OF HEALTH INSURANCE

There are several ways of minimizing the cost of health
insurance. Your tolerance for risk will determine which,
if any, you are comfortable with.

=> Reduce the Level of Coverage

Do you really need to have every doctor's visit and
prescription covered? If you only go to the doctor once
a year for an annual examination, have no health
conditions, don't need regular expensive prescription
medications and are generally healthy, consider cutting out
coverage for office visits and prescriptions.

=> Higher Deductible

Similarly, if you're reasonably healthy, don't visit the doctor
very often and don't need to use expensive medications,
consider switching to a higher deductible to save on
premium costs. By increasing your deductible from $100
to $2,000, you can cut your premium payment in half.

=> Annual Premium Payments

If you can afford to do so, pay your premiums annually
rather than monthly or quarterly to avoid service fees and
to take advantage of prepayment discounts where
available.

=> Join Associations

Just because you're going it alone in your business
doesn't mean you can't take advantage of the group
buying power that being a member of an association
offers. Check out your local chamber of commerce,
various trade and professional groups and small and
home business associations for member benefits. Many
offer access to discounted health insurance.

Here are a few small/home business association links
to get you started (you'll need to cut and paste some
of these links if they wrap to the next line):

National Association for the Self-Employed
http://www.nase.org/nase_benefits/health_benefits.asp
American Association of Home-Based Businesses
http://www.aahbb.org/benefits.htm
Home Office Association of America
http://www.hoaa.com/allbenefitsnew.htm
National Business Association
http://www.nationalbusiness.org/NBAWEB/Directory/Internal_Pages/Member_Benefits/Health.htm

Don't forget to check out local associations in your area
or associations relevant to your particular profession.

=> Shop Online

Being able to offer insurance products online means insurance
companies save on broker and agent fees. Often, this
translates into premium savings for policies purchased over
the Internet. So, when your fingers do the walking, make
sure they do so on a keyboard and not the Yellow Pages.

=> Medical Savings Accounts

Under the Health Insurance Portability and Accountability
Act (HIPAA), if you're self-employed you may be eligible to
use a medical savings account, or MSA.

MSAs work in conjunction with higher deductible health
insurance policies to reduce premiums and allow you to use
pre-tax dollars to pay for your medical expenses up to the
limit of the deductible on your insurance policy.

Basically, you reduce your premium by replacing a low-
deductible policy with high-deductible policy and use the
premium saving to make fully tax-deductible contributions
to your MSA. You can contribute up to 65% of the deductible
each year into your MSA (75% for families). The money goes
into a tax-deferred account or trust and you pay your medical
expenses (until you reach the deductible) by drawing from the
account. Once you hit the deductible, of course, the
insurance policy kicks in.

If you spend less than you contributed, the surplus stays
in the account and earns interest. Not only that, the funds
can be invested in high-return vehicles such as mutual funds
and stocks.

As the balance can be carried forward, an MSA can be used to
accumulate a pretty healthy nest egg for retirement. In fact,
a Journal of Financial Planning analysis calculated that if you
contribute $1,500 per year into an MSA for 25 years, assuming
a 12% rate of return, you'll end up with almost $1.5 million.
That's assuming you don't draw from it to pay for medical
costs, of course.

There are some limitations though. First, the range of
deductibles is limited to $1,500 - $2,250 for individuals and
$3,000 - $4,500 for a family. Second, as we saw above, you
can contribute only 65% of the deductible as an individual or
75% for a family.

So, if you're an individual and you choose a policy with a
$2,000 deductible, you'll be able to contribute 1,300 pre-tax
dollars into an MSA each year. In other words, Uncle Sam
pays for part of your health insurance/retirement fund. How
fitting.

The money in the MSA can be used to pay any medical
expenses incurred before the deductible is reached, as well
as other eligible costs such as contact lenses and dental
work. If you use the money for anything else, you must not
only pay tax on the amount withdrawn, but a 15% penalty
on the top. (If you're over 65 when you make the
withdrawal the penalty is not applied but you'll still have to
pay the tax.)

(By the way, MSAs are also available to you if you work for
a business with fewer than 50 employees.)

In short then, MSAs offer a very tax-effective and potentially
lucrative way to self-fund part of your health care costs while
dramatically reducing your premiums. If luck is on your side
and you remain healthy, by the time you reach retirement
age, your MSA could well fund your retirement.

Pretty neat.

=> Self-Employed Health Insurance Deduction

Finally, the self-employed can write off 70% of their health
insurance premiums in 2002. This increases to 100% in 2003.
That's only so long as the total doesn't exceed the net profit
from your Schedule C minus deductions for one half of the self-
employment tax and Keogh, SEP and Simple contributions
though.

Also, the deduction can only be claimed for months when
you weren't eligible to participate in a subsidized health plan
from another employer (including your spouse's employer).

Self-employed workers who qualify for both the self-employed
health deduction and the itemized medical deduction can
write off the other 30% this year on Schedule A. (Medical
expenses are deductible on Schedule A only to the extent
they exceed 7.5% of adjusted gross income.)

WHAT TO DO IF YOU'RE UNINSURABLE

The foregoing is all well and good if you're able to get health
insurance in the first place. But what if you have a pre-
existing condition that disqualifies you from an individual
health plan and you can't get into a group plan? In other
words, you can't get insurance at any price.

=> HIPAA

Although beyond the scope of this article, the Health
Insurance Portability and Accountability Act (HIPAA) may
offer you some protections. For more information about how
HIPAA may help you obtain health insurance even if you
have a pre-existing condition, visit
http://www.hcfa.gov/medicaid/hipaa/content/hipsteps.asp .

=> Risk Pools

High-risk health insurance plans, also known as risk pools,
are state-funded plans and are an important safety net for
individuals who are denied health insurance because of a
medical condition. They're available only in 29 states though.

To be eligible, you must be a resident of the state from
which you seek coverage (unless there's reciprocity
between that state and the state you reside in) and
you must be able to prove at least one of the following:

1. that you've been rejected for similar health insurance
coverage by at least one insurer; or

2. you're presently insured with a higher premium; or

3. you're presently insured with a rider or rated policy.

You will not be eligible for participation in a risk pool if:

1. you're not a resident of the state from which you seek
coverage (again subject to reciprocity between states);
or

2. you're eligible for Medicare or Medicaid; or

3. you've terminated previous coverage in the plan
unless at least 132 months have since elapsed; or

4. you're an inmate of a public institution.

For more information on risk pools in your state, contact
your state health insurance department, the national
association "Communicating for Agriculture and the Self-
Employed" (1-800-432-3276) or visit
http://www.selfemployedcountry.org .

Coverage via the safety-net protections of the HIPAA may
end up being "risk-pool" coverage.

=> Healthcare Savings Programs

Healthcare savings programs are patient advocacy programs
that minimize out-of-pocket healthcare expenses.

They're not insurance policies but rather programs that allow
you to access networks of healthcare providers for the same
negotiated rates that large insurance companies enjoy.
Savings range from 20% to 50%.

Not ideal but better than nothing. Also, since they're not
insurance policies, all pre-existing conditions are accepted.

A modest monthly fee is usually required to participate.
See, for example, Care Entree at http://www.careentree.com
for $20 per month.

Although health insurance may seem like a luxury you just
can't afford if your finances are already stretched to breaking
point thanks to your home-based business, you never know
what's around the corner. Quite simply, you and your business
can't afford not to have health (and disability) insurance.

You are your business's greatest asset. Protect it.

------

** Reprinting of this article is welcome! **
This article may be freely reproduced provided that: (1) you
include the following resource box; and (2) you only mail to
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Here's the resource box to use if reprinting this article:

------

Elena Fawkner is editor of A Home-Based Business Online ...
practical business ideas, opportunities and solutions for the
work-from-home entrepreneur.
http://www.ahbbo.com
Also, visit Elena's newest site, Web Work From Home
http://www.web-work-from-home.com

Elena Fawkner is editor of A Home-Based Business Online ...
practical business ideas, opportunities and solutions for the
work-from-home entrepreneur.
http://www.ahbbo.com
Also, visit Elena's newest site, Web Work From Home
http://www.web-work-from-home.com

Changes to International Health Insurance

Those who travel overseas for business or vacation may want to know that two of the world's largest international health insurance plans - Atlas Travel and the International Citizen Medical Plan insured by Lloyds of London have changed coverage and rates effective January 1, 2002. The coverage levels are increased for the new policies and the premium cost is proportionately higher.

These plans are specifically designed to deal with the language issues, currency translation and business practices unique to the medical care of international travelers. I believe that the improvements in benefits will be welcomed by customers. The relatively low cost of these plans means that a modest price increase is not a significant barrier for most customers.

The updated rates and forms are now available online at www.MedSave.com using the International Health Insurance or the "Forms" link and printed versions of the new enrollment brochure are expected to be available in early January.

These plans are specifically designed to deal with the language issues, currency translation and business practices unique to the medical care of international travelers. I believe that the improvements in benefits will be welcomed by customers. The relatively low cost of these plans means that a modest price increase is not a significant barrier for most customers.

The updated rates and forms are now available online at www.MedSave.com using the International Health Insurance or the "Forms" link and printed versions of the new enrollment brochure are expected to be available in early January.

Tony Novak, MBA, MT, is a tax and benefits adviser based in Narberth, PA. His businesses Freedom Benefits Association and MedSave.com provide enrollment services to individuals and businesses nationwide

Health Insurance; COBRA; OBRA; HIPAA; Medicare; Definitions, Relationships

Health Insurance; COBRA; OBRA; HIPAA; Medicare. If asked, could you state that you knew that all 5 of these topics had the same thing in common: medical insurance coverage for you and, perhaps, your family? Would you know the qualifications for each? Well, in this article, we will discuss them. For a timeline that depicts, graphically, the time relationship between them, please see the timeline in www.disabilitykey.com.

HEALTH INSURANCE Coverage from Work

If we are lucky, we, and/or our spouse, work for a company that provides, as a benefit, health insurance coverage for us and our family. If so, we are very lucky. Even if that is true, there are some key things that you might want to look at to see if you have ENOUGH coverage.

1) From your Human Resources Department (or wherever else you would go to get information about your health insurance) get what is called a "Summary Plan Description" (SPD). This document should be kept where you can always find it, as it contains all the information you will need about what your insurance covers and what it doesn't.

2) Look up "Coverage" and "non-coverage" in your SPD.

These will tell you what your plan covers and doesn't cover. You need to see if, perhaps, you or one of the covered members of your family has a condition or circumstance that might not be covered, where you need additional coverage. For example, let's say that your family has a history of cancer; perhaps your plan restricts the number of hospitalization days for care; or, restricts the days per condition. In this case, (like my children) you might want to get additional "cancer insurance" (I think that AFLAC might provide this type of coverage).

It would be a good idea to contact a Health Insurance benefit Broker and ask him/her to read your SPD and see if you have any gaps in coverage. They then can help you supplement coverage BEFORE YOU NEED IT!

NO HEALTH INSURANCE COVERAGE

You might be one of the growing members of our society that, through one circumstance or another, does NOT have health insurance coverage for your family. In this case, I strongly encourage you to contact a Health Insurance Broker and get immediate coverage of what is called "catestrophic" (not sure if I spelled this correctly) coverage. In this type of coverage, you will generally have large deductibles, but will have coverage if, say, one of you has to go into the hospital.

CONTACTING A BENEFITS INSURANCE BROKER

Whenever you call or email a Health Insurance Broker, it is very important to prepare ahead of time. WHAT, specifically are you looking for; how much can you afford to pay every month; what circumstances do you want to make sure that your family is covered for. In this way, you can make sure to focus on your critical needs.

COBRA

COBRA is an acronym ( how can I spell acronym correctly, yet not be sure that I spelled catestrophic correctly?) that stands for: Consolidated Omnibus Budget Reconciliation Act. Basically, it is a federal law that allows you to pay for your Company-paid health insurance, as an active member, if you no longer work for that company for, generally 18 additional months.

1) COBRA is "triggered" (that is, you, or a covered member of your family, become eligible for COBRA) by events such as the following: resignation from the company; termination (FOR ANY REASON) from the company; divorce of a spouse; a covered chile's birthday makes them ineligible for coverage. These are the main "triggering" events for COBRA.

2) Now, when eligible for COBRA, you will be asked to pay for 100% to 105% of the company's employee/employee and family coverage amount. You should get a letter from your company explaining what that amount will be. BEFORE YOU DECIDE TO TAKE COBRA, there are some important things for you to consider.

What will be your cost, and what will be the coverage for that cost? Sometimes the cost is too much for the coverage. In these cases, you might want to select HIPAA coverage, instead (see HIPAA below).

Or, you might just want to get catestrophic coverage as was mentioned earlier, and wait for full coverage under your next job.

Part of this decision should be whether or not you or a member of your family has what is called a "pre-exisitng coverage" condition.

Here again, before automatically taking COBRA, it would be wise to contact a Benefits Insurance Broker and give him/her all of your options, and get their input. I have worked extensively with a Benefits Insurance Broker, and he is absolutely fantastic!

OBRA

What, you ask, is OBRA? I've never heard of it, you say, and no one I know has heard of it either! Well, that's because, 99% of Human Resource or Benefit folks that I know have never heard of it! OBRA is a federal law that was passed that extends COBRA for an additional 11 months FOR DISABILITY PURPOSES ONLY!! Why, you ask, is this important? Thanks for asking, let's see if I can explain.

If you are as nieve (did I spell this wrong too? sorry!) as I was when I first started looking to bridge my health insurance from working to Medicare, I assumed that when I got through all of the hoops to qualify for SSDI (Social Security Disabililty Insurance) I'd IMMEDIATELY be eligible for Medicare, RIGHT??? WRONG!!!!

When you FINALLY qualify for SSDI, you have to wait for 5 months before you get your first check. AND, the rules state that, you are eligible for Medicare 2 years (24 months) FROM THE DATE OF YOUR FIRST SSDI PAYMENT. Well, if you add 24 + 5 you get, 29 months between qualifying for SSDI, and Medicare coverage.

OK, I said earlier that COBRA is for 18 months of coverage. Well guess what 18 months of COBRA + 11 months of OBRA equal - 29 months!

BUT, there are two catches to OBRA; first of all, you have a small window of 30 - 60 days to apply ( this window opens the date of your SSDI approval); and, it can cost up to 150% of your plan coverage amount. BUT, if you have a "previously existing condition" this might be the best way for you to proceed.

Again, it is important to contact a Health Insurance Broker to help you with the risk/cost ratio of all of these situations.

It is also improtant to know all of these deadlines as you plan to ensure that you and your family have important health insurance coverage.

HIPAA

HIPAA is a federal law that is called, briefly, the "portability" law for health insurance. What that means is that when you leave a group (read company-paid plan), the carrier that provided that plan, must offer to you, another plan, different from COBRA, when you leave the group coverage. Generally this will be what is called a "bare bones" plan. Again, the best thing for you to do is to call/email a Health Insurance/Benefits Broker with all of your information: SPD, COBRA info, HIPAA info, needs, cost limits, and let him/her help you find the optimum plan coverage for you.

MEDICARE

OK, now, finally, we've reached Medicare! BUT (you really didn't think it would be that easy, did you?) if you have qualified for Medicare because of disability, there are RESTRICTIONS (of COURSE there are!).

First of all, if you are qualifying for Medicare because of disability, you are probably under the age of 65 - normal retirement age.

Medicare coverage does NOT cover prescription drugs, which, those of us with disabilities probably need, and which cost lots.

But, Congress prescribed that states (all but 11) offer what is called "Medicare supplement" plans, some of which do offer prescription coverages. BUT, these plans ARE NOT REQUIRED TO, and do not, offer these medicare supplement plans that offer prescription coverages to folks who qualify under age 65! So, if you are qualifying because of disability, your medical insurance plan doesn't cover one of your primary cost expenditures!

Here again is where you need to contact a health insurance/benefit broker. Again, he/she can work with you, and your specific circumstances, to get you the coverage you need.

Hope that this information was helpful to you. If you have any questions, please feel to ask them by commenting on this blog, and I'll be happy to get you an answer.

About Disabilitykey.com & Carolyn Magura:

Disabilitykey.com is a website designed to assist each person in his/her own unique quest to navigate through the difficult and often conflicting and misleading information about coping with disabilities.

Carolyn Magura, noted disability / ADA expert, has written an e-Book documenting the process that allowed her to:

a) continue to work and receive her “full salary” while on Long Term Disability; and

b) become the first person in her State to qualify for Social Security Disability the FIRST TIME, in UNDER 30 DAYS.

Click here to receive Carolyn 's easy-to-read, easy-to-follow direct guide through this difficult, trying process. If you are disabled, don't let this disabiling process

 disable you. Read Carolyns Disability Key Blog.