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What’s a Commercial Freelancer to Do about Health Insurance?

After getting yet another email a few weeks back from a reader, suggesting a post on health insurance for freelancers, figured it was time. I know this is a hot button issue for any commercial freelancer, often looming as one of the key issues giving salaried employees/aspiring commercial writers pause when considering the leap to self-employment.

If you’re single and in good health (like I am on both counts), health insurance really shouldn’t hold you back from the commercial freelancing life – psychologically or logistically. As I see it, there are far bigger boogeymen (usually imaginary if you’ve planned well) facing free agents like us. Will I go broke? Will I lose my house? Will I be reduced to standing on a corner with a “Will Write Copy for Food” sign? Nonetheless, it’s still one more thing to consider.

Since 1997, I’ve used Kaiser Permanente. I rarely step foot in the place (but you’re paying for peace of mind), but over the years, have been pretty impressed with their offering, services and thoroughness.

I’m not crazy about the fact that, like clockwork, my premiums go up every year by roughly 15+ percent, but all in all, I still pay a not-unreasonable $325 a month. Co-pays for doctor visits are $30, and a surprising number of other services are covered or subject to co-pays (as opposed to coming out of pocket to satisfy your deductible).

Women will typically pay more for health insurance than men of the same age, but depending on the plan, and the deductible and co-insurance level chosen, a single person of either gender can generally find a manageable plan out there.

And with some of the new clauses of the healthcare bill, you’ve got more protections than may have been the case in the past. And do NOT try to drag me into a debate on THAT issue; ain’t gonna happen. I will ignore you and delete your comments. No hablo ingles…;)

For those pondering going without – a temptation for singles in good health and feeling bullet-proof, I wouldn’t even consider it. Not worth it. One accident or illness and you’re in deep doo-doo.

And yes, if you have a family, it’s going to cost a good bit more. Not every freelance commercial copywriter has a gainfully employed and benefits-laden spouse to cover that base. But a quick look at Kaiser’s plans turned up plans in the range of $600-800+/month for a family of four, depending on options chosen (don’t take these figures to the bank; that’s Georgia. Your mileage may vary, etc, etc.).

Not great news, but not necessarily a deal-killer, either. Remember, stay in a job you hate, just for the bennies, and your health will likely suffer. Sort of defeats the purpose.

For the uninitiated, here’s a basic overview of an HMO. As a member of Kaiser, getting insurance on my own, I’m put in with a certain group of subscribers. I have no choice in the matter – that’s the nature of the HMO model – and I don’t know who they are (i.e., we don’t catch up for coffee…).

The nice thing about the HMO group model is that individual consumption of services doesn’t directly affect one’s rates. That’s good news and bad news. Good news: if you use a lot of services in a given year, you won’t be singled out for a skyrocketing rate increase. Bad news: even if you don’t use it at all, your rates will still go up every year.

A few resources:

For more information on health insurance (as well as life and disability insurance), click here.

To find a health insurance agent in your area, click here.

For insurance plans for creative folk, click here.

Assuming you don’t have a spouse with benefits, what do you do for health insurance?

If you have a family and had to get insurance on your own, how did you go about finding the best deal?

Any good health insurance resources you’ve come across for the self-employed?

Any strategies you’ve employed to get the most from your health care dollars?