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Ask Slashdot: Health Insurance for the Self-Employed

Posted by Cliff on from the searching-for-options dept.

A nameless submittor wanted to voice this very valid concern: "I'm a self-employed contract programmer whose COBRA benefits are going to run out early next year. I was wondering what experiences others of similar employ have had obtaining health and disability insurance? What is available? What about rates? Is the coverage any good? What do I need to look out for?"

3 of 111 comments (clear)

  1. Healthcare insurance in the UK by Tet · · Score: 2
    Can't comment about the States, 'coz I don't live there :-) However, here in the UK, it's relatively straightforward. When I started contracting, I saw an independent financial advisor, who told me to do a number of things (in the UK, contractors typically form their own limited companies -- this may be different in the US):
    1. Personal permanent health insurance. This provides benefits should you be unable to work for an extended period of time. They typically start paying out after either 4 or 13 weeks, depending on how much premium you pay. Look for a policy that covers same occupation, i.e., if you can't program for a while, they won't force you to work in McDonalds (this is sadly suprisingly common).
    2. Executive pension. Not a lot to say about this, other than pick one of the rare ones (less than 5%) that don't do front end loading, otherwise your pension fund won't break even before about year 6 or so. This is a big issue with IR35, and you may be forced into a permie position and need to transfer to a personal pension.
    3. Executive permanent health insurance. Pays out for pension contributions should you be unable to work, with similar conditions to the personal equivalent.
    4. Life insurance. Covers your dependents if you die (I already have this as part of my mortgage), and may also pay a lump sum should you be permanently disabled.
    5. Private healtcare. Unlike the US, we have the NHS, and private healthcare is strictly a luxury item. That said, if you ever need a stay in hospital, you'll be glad you got it. Just pick one you like the look of. Now being offered by banks and building societies at a discount the normal PPP / BUPA etc. premiums, but check the exclusion clauses.
    All this adds up to be quite expensive, but it's probably worth it. Off the top of my head, I think I'm paying about 100-150 quid per month for the insurance, plus a shitload for the pension (about a grand a month!).
    --
    "The invisible and the non-existent look very much alike." -- Delos B. McKown
  2. Call Blue Cross by tgd · · Score: 2

    You might want to try calling BlueCross/Blue Shield. Here in Connecticut, they just added a "non-group, group plan" or some such thing. Basically you get the same prices and benefits as being on a group plan, even on an individual policy.

    I don't know if that's a policy plan for just BCBSCT or if its something nation-wide through BCBS. Worth a shot though.

  3. I use Blue Cross by bill_pennington · · Score: 2

    I am an independant consultant and have been for about 4 years now. I have had a Blue Cross PPO plan for about 6 months now and I am pretty happy with it. I agree with slag, you must access your situation. I started out with some pretty plain coverage. Then I started spending a lot more free time playing soccer and snowboarding. I got a few bumps and bruises along the way so I decided to get a plan that covered doctor visits better than my previous plan. Right now I have the cadillac PPO plan that has a $10 co-pay and some other crazy stuff. I pay about $120 a month if memory serves me correctly. This is about $30 a month cheaper than I paid in COBRA from a former employee. Have you looked a online Insurance services like www.insweb.com? They might be worth a look as well.