How to Get Group Health Insurance for Self Employed Individuals
Health insurance plans for self-employed individuals are expensive to obtain. The basic plans have shed essential coverage that is normally offered to group policyholders, in an effort to be more affordable. But, that means more out-of-pocket costs to the insured. Even the most inclusive plans have higher deductibles and co-pays, in addition to the premiums. Fortunately, there are ways to bring the costs of self-employed insurance down. One of the most effective methods is with group health insurance. Self-employed individuals have a few options for obtaining group coverage.
Group Affiliations
Some of the groups that self-employed workers belong to offer group insurance policies. The Freelancer's Union, for example, offers group insurance for self-employed freelance workers who are also union members. The vision, dental, and general health insurance rivals that of many major employers. Union members can also insure their families under the plans as well. Other organizations also offer group rates on health insurance. They include alumni associations, professional organizations (American Bar Association, American Institute of CPA's, etc.) and employers of large groups of freelancers. Inquire about self-employed health insurance by asking any large group that you belong to. Start with the groups that you pay dues to.
Building Your own Group
Self-employed workers can build a group of their own by gathering others in an industry to join together into a group. You could create a group out of the professional forums that you belong to, the forums created for writers, web developers, or whatever your profession may be. Another way to gather members for your insurance group is by placing a notice in a newsletter issued by a professional organization, a trade magazine, or another publication that is read by many people in the same industry. Building a group allows you to test the waters for interest in health insurance. It will also give you a number to take to the insurance companies when negotiating a plan.
Finding a Plan
Contact the major health insurance companies in your region to get a quote on group health insurance. Companies like Blue Cross Blue Shield and Cigna, along with many others, already offer group health insurance to many employers. They are great places to inquire about your group. Let the company know about the number of people interested in the insurance and also the amount of people that you can potentially gather once the plan has been enacted. A larger group will help lower the insurance premiums.
Ask the company for plans with differing premium rates, from the very affordable to the most inclusive (and expensive) plans. This range will give you options to take back to your group. Some companies may not be able to offer choices. That's where the negotiation comes in. Contact more than one company for quotes. Then, use those rates to negotiate lower premiums or more benefits with the company you would most prefer to get the insurance from.
Once you have the plan in place, announce it to the members of the group and place notices wherever possible to get more group members to join your self-employed insurance group.
