In a word: No!

However, even though that is true, for many Accident Insurance provides them needed protection when Work Comp Insurance is simply not an option for them. Many self-employed individuals do opt out of Work Comp for themselves. Why do they choose to do this?

Its because 1) it is expensive and 2) it basically will not pay benefits for the owner. [These comments have to do with California]. So many wonder why they should pay for something that will not provide benefits.

With all the talk about health care combined with the fact that many are suffering from a lack of work – the self employed have to evaluate the best way to protect themselves. Many do not pay into Workers Compensation

But what is a self-employed construction worker or similar tradesman / woman to do? How does a person provide a reasonable amount of protection on themselves?

Here is a link for a reasonably priced accident plan. A person can combine this with a high deductible health insurance plan. This way a person can cover themselves, at least against medical costs, should they get injured while working, and still partially self-insure for sickness (for all of you who “don’t go to doctors”).

There is more to this that I would like to explain to you, as a person in this situation really should do more than what I’ve addressed in this blog and this blog does not address the whole picture.

However, this will get you started. Please call me if you have questions.

Michael Myers
209-390-1163

You Need a Budget

Keep reading. I promise you this makes sense and there are health insurance options for you out there.

We all need to budget.

Why?

It makes sense for YOU to be the one who decides how to spend your hard-earned dollars.

Quite likely, most have been in that situation where we feel like we’re just putting out “fires.” As soon as we have one doused we turn around and there’s something else that needs immediate attention because it’s about to burn the place down so now all of your resources are aimed at putting that “fire” out.

That’s letting the figurative financial “fires” determine how you spend your money. It’s exhausting. And consumes too much energy and resources – and all too often the important stuff gets postponed. Like health care.

Now, it’s a given – health insurance is not “cheap”. Health care is expensive too. The government continues to come up with new and innovative Band-Aids for the whole health care system.   Time will tell what will come of all of that.

Meanwhile there’s really too much at stake to postpone taking charge of YOUR health care.

One of the most affordable options can be a high-deductible, HSA-qualified health insurance plan.

What??

Why bother with an insurance plan with a really high deductible? You’ll be buying insurance AND STILL having to pay for the doctor, right?

This is what I want you to do. I want you to reframe that thought. Do you have a home? Do you make payments on your home? Do you pay the taxes on your home?

Why do you do that? Likely because you like your home and you want to keep it. You are protecting your investment – because if you don’t pay those things, you could lose it. Think of a high-deductible insurance plan as yet another way to protect your investment. If you get sick and have a major expense (and it does not take much to qualify as “major”), health insurance will keep that particular “fire” from consuming your most valued asset.

So…how do you AFFORD health insurance on top of everything else in this miserable economy?

Careful planning and choosing the right insurance policy can make health insurance affordable. You may be surprised to find that there are health insurance options that will fit your budget and and give you the peace of mind you need as one more way to protect your assets.

One option – an H.S.A.

What is an H.S.A.?

It stands for Health Savings Account. It is provided for in our tax code to allow a person to have a high deductible health insurance plan, and also contribute tax-deductible money to a Health Savings Account (at a bank). Money going into the account is tax deductible. Any money coming out of that account – when spent on health care (i.e. paying the doc from this account) is not taxable.

Another benefit to funding your H.S.A. – if you are in the 28% tax bracket, and you do fund the account and you do pay medical expenses from this account, it is as if you are paying the doctor, dentist, optometrist, chiropractor – whomever your helath care professional may be – with 72 cent dollars. I’ll bet you like the sound of that! Your health care is CHEAPER!!!!

But what if….

What if I cant do it? What if I can’t get my H.S.A. funded with enough $ in it to cover my deductible? Now what good would it be to have purchased this high-deductible insurance policy?

OK…let’s just come up with a hypothetical situation here. I’m not suggesting or recommending you do this – but let’s talk about this particular “what if?”

You’re self-employed.  You end up injured on your job, or that funny pain in your gut turns out to be a bad gallbladder/appendix – whatever. You land in the hospital. You have insurance, so at least they TOOK YOU as a patient right? But oh no…the deductible is terribly high.  You know you don’t qualify for any of the charity programs because you own your house and your business etc.  This sure does look like the straw that will break the camel’s back. Oh worry. Why didn’t I at least save for that blasted deductible?  Or… Why didn’t I just bite the bullet and pay for a more expensive policy? How fast can I get out of this place?! Worry. Worry. Worry.

You leave the health care facility with a payment plan – which you now add to your budget. Each month you’ve agreed to pay the health care facility $100 – or whatever. Why don’t you just put that $100 in your H.S.A. and pay them out of THAT account? $100 in (tax-deduction for you) – $100 out – paying back the debt to the hospital – no penalties for withdrawal from H.S.A. because it’s for a medical expense you incurred after establishing your H.S.A. – if you’re in that 28% tax bracket – you’re paying them back with a .72 dollar.  It’s not the best way to plan for the future – but it’s still better than NOTHING.

Did you know?

When you turn age 65 – ANY money that has not been used and is still in your H.S.A. can now be converted to an I.R.A. and used for retirement purposes.  Again:  No penalties or taxes?

I can help you with this.

Call me or e-mail me and let me explain what’s available. You might just be surprised that it actually will fit into the budget.

Check it out.

• Budget Software – I use it but I’m not affiliated with YNAB. They make budgeting EASY and maybe a little fun.
• Contact Michael about Insurance and HSA options.

Medicare Advantage season was over before it began, so far as I was concerned, as the Annual Enrollment Period runs from November 15th to December 31st and the regulations got pulled on November 14th. Lots of issues over commissions and the like with certain ones acting like we insurance agents are getting rich selling this stuff. Nothing could be further from the truth. We have hours and hours invested EVERY year to certify to enroll people during the current season. Nothing else in the industry, that I know of approaches this level of time investment by the agent, with so little compensation. No one pays for our time to do this. And then the restrictions on marketing get more and more restrictive. And as for commissions, no one is getting rich here. They could only be described as low to very low – especially when you consider what a person goes through to offer them.

And as irritated as I am, personally, by all of this, I think Seniors should be even more irritated. Rules and rules and more rules – with notices after notices that no one is going to take the time to read, much less know what it means.

I have my doubts that these plans will continue for very much longer, at least not without serious changes.

Having said this, it is to be acknowledged that there are definite advantages to these types of plans – for some consumers, but how anyone finds out without talking to someone – like myself – who will tell them the truth – about all plans available, not just the ones you can sign up for at the drug store or some major retailer, I have no idea.

Every person is different, and which plan is best for them depends on unique circumstances. But plans made available in major retailers – usually is contractually limited to one or two plans, and in addition to this obvious issue that is not in the consumer’s best interest … ask the agent how long he/she has been licensed. In most cases, not long.

I have been working with Medicare Supplements for over 30 years. I believe that some people are best served by Medicare Advantage products (in spite of all the hassles), but many – if not most – are best served by traditional products.

I can help you, but due to all the regulation, I need you to ask me. I will guide you through it.

And keep in mind that CA has a rule that allows you to, in many cases, switch Medicare Supplement plans without underwriting 30 days from your birthday.

So if you have a birthday coming up – why not let me offer you my services? It won’t cost you anything – and likely will save you money.

Sometimes I have people tell me, I don’t get sick. Well, some people just don’t get sick … until they do.

For these people I often recommend a high deductible health plan. Then they are covered if and when they do get sick.

But some people, although they “don’t get sick” worry about accidents.

For these ones, I say – “Buy a high deductible health plan and a very low deductible accident plan“. This way, you are covered for the small dollars if you have an accident, and you are covered for the large bills no matter what happens.

Click on accident above to see the accident plan, but please email me for a quote on the health plan. I will match it to whichever accident plan makes sense to you. Just click on my picture for my phone number and email addresses.

Michael Myers