Health Insurance for the Daytrader

[Dinerotrader 10]

i have been putting a plan together to move from my corporate job to full time trader and one of the things on my list is to find health insurance.

 

Does anyone have a good idea of where to look for health insurance for someone that is self-employed and get reasonable rates for a family?

[DerferMark 10]

Not sure what state you're in but I just filled out application at Individual Health Insurance Plans that are Right for You from HumanaOne. They seem to have good rates for me in Illinois.

[brownsfan019 17]

Great question. I ended up just going through an insurance broker that I knew from my stock broker days. I actually have been meaning to price some new companies up. One I see advertised on TV is: http://www.assuranthealth.com

 

That's not a recommendation, just one that I've seen advertised lately.

[diablo272 10]

I am also interested in this. I'll soon be too old to be covered under my mom's plan (lol), and having been to the emergency room a couple times in the past year and seeing the bill that the insurance company paid, I think health insurance is something I'd like to have.

[brownsfan019 17]

  diablo272 said:

I am also interested in this. I'll soon be too old to be covered under my mom's plan (lol), and having been to the emergency room a couple times in the past year and seeing the bill that the insurance company paid, I think health insurance is something I'd like to have.

 

At the very least, get a minimum plan that covers catastrophic events. You can get something with a very high deductible, but at least something is there should there be a reason to need it.

[JEHs 10]

I have have been self employed for over 20 years and now have assuranthealth through my State Farm agency. I don't really know about any others, it just happens to be what State Farm put us with. We pay thousands a year and never see any of it because we are healthy and have a very high deductible. I think they are probably as good, (or as bad) as any of them, it's all just playing the game...

 

Like everyone, we are insuring against catastrophic loss, but now days, even a very high deductible cost a lot of money. It is really quite ridiculous no matter how you look at it...

:bang head:

 

JH

[Lynmark1 10]

  Dinerotrader said:

i have been putting a plan together to move from my corporate job to full time trader and one of the things on my list is to find health insurance.

 

Does anyone have a good idea of where to look for health insurance for someone that is self-employed and get reasonable rates for a family?

 

:deal:I was a sales vice president for one of the biggest insurance wholesale brokerages for many years. do your self a favor and find a broker you trust that will spend the time to help you through the insurance process. There are many products available and it is a shame that health insurance is commoditised. Do not buy on price alone, trust your broker to provide various compnay quotes to look at and compare. Your broker will or should perform proper field underwriting to find the best fit once you both have a meeting of the minds. Good luck.

[Dinerotrader 10]

  Lynmark1 said:

find a broker you trust that will spend the time to help you through the insurance process. Your broker will or should perform proper field underwriting to find the best fit once you both have a meeting of the minds. Good luck.

 

Do you have any recommendations for finding a "broker you trust". My natural inclination is to not trust a broker and assume they are just trying to make some money off me. I used a broker many years ago when I was self employed and it worked out okay but I really had no idea if should trust them. I had to because I didn't know what else to do.

 

Price isn't my biggest issue. I just want something reasonable that covers the things you expect insurance to cover for a competitive price. I can earn enough to cover the monthly premium on a quick 20 second oil trade.

[brownsfan019 17]

I'm should be taking a look at some online insurers here soon. My renewal came in and it's going up of course. I'd rather do it all online, so I'll see what I can find and report back here.

[Dinerotrader 10]

It seems like there should be some good options through some type of collaboration of self employed people or small business assocations.

[brownsfan019 17]

  Dinerotrader said:

It seems like there should be some good options through some type of collaboration of self employed people or small business assocations.

 

There very well could be. I know there's at least one in the Cleveland area but you have to pay to join and go to meetings and stuff. Don't feel like doing that.

[JEHs 10]

  Dinerotrader said:

It seems like there should be some good options through some type of collaboration of self employed people or small business assocations.

 

I just found a good program here for workers comp for my employees that is that type of set-up where a bunch of contractors got together and started their own program. I have often thought that would be the way to go with health insurance. Make it some sort of a co-operative, and eliminate the folks at the top making their millions, negotiate with hospitals and clinics somehow and put a great deal of effort into eliminating fraud.

It would seem do-able...but I don't now how you would go about starting something like that. It is really the same principle where if we could take all the money we have put into insurance our whole lives and had it sitting in a savings account, we would probably have enough to cover anything that might happen. Knowing you would be fairly healthy for 20 years you could self insure yourself that way.

But now, here we are. Past middle age and wondering what to do about health insurance...lots of money down the drain...

[brownsfan019 17]

Part of my reason for being busy lately was working on this. I got my renewal from Anthem and I had enough. It was time for a change b/c they just kept jacking my rates up and the plan I was on was not the great.

 

I have an application in to SuperMed One from Medical Mutual of Ohio. I was able to do everything online (which is what I wanted) and you are able to pick and choose from a variety of options. I also added dental and vision through them. Assuming I get approved and get the price quoted on their website, I will be paying 26% less per month for better health insurance and dental and vision. I did not have dental/vision on my old plan, just self paid those.

 

This looks like an OH based plan, but it could just be branded that way. I have no idea.

 

I also was strongly considering Assurant. They also have the ability to customize the plan to what you want. It appears this is available in all/most states, so this might be an option for those not in OH to consider.

 

Assurant is my backup plan if something falls through with SuperMed One.

[daedalus 10]

I don't have a family or family insurance but i'm self insured via Health Insurance - Affordable Health Insurance Quotes, Individual Health Insurance (well at least thats how I ended up finding my coverage).

 

Easy to use site and it might have some options for you.

[Cory2679 11]

  daedalus said:

I don't have a family or family insurance but i'm self insured via Health Insurance - Affordable Health Insurance Quotes, Individual Health Insurance (well at least thats how I ended up finding my coverage).

 

Easy to use site and it might have some options for you.

 

I just "aged off" (graduated college in May) my parents' plan, and had to get my own beginning Jan 1st, and I did it through this website as well. No complaints.

[thalestrader 14]

  brownsfan019 said:

There very well could be. I know there's at least one in the Cleveland area but you have to pay to join and go to meetings and stuff. Don't feel like doing that.

 

Just stay away from NASE (National Association of Self-Employed) and their Mega Health Insurance Company.

 

 

Best Wishes,

 

Tha;es

[Dinerotrader 10]

  thalestrader said:

Just stay away from NASE (National Association of Self-Employed) and their Mega Health Insurance Company.

 

 

Best Wishes,

 

Tha;es

 

This has been a great thread for ideas about this. Thanks for all the help guys.

 

I've been setting up some milestones with my wife recently to lay out a clear path to transitioning my career to trading. Health insurance is definitely one aspect I have to have nailed down to make sure she is on board.

[TraderJen 10]

Am I missing something here...because to me the solution is pretty darn simple. Why not just start a corporate entity with yourself and a second person to qualify as a small business? Then you could go to any health insurance agent and get small business health insurance, vision, dental, etc... Here in California, insurance companies are only allowed to increase rates 10% above generic rated quotes even with pre-existing conditions, so that takes care of any worry about that, for me at least. This is how I've insured myself and my dependents. And, of course, one could benefit from tax write offs of paying premiums as an employer; and if a HSA is selected, a few more goodies in that for those of us who trade through HSA accounts.

 

IMO, Small business insurance is the way to go. Then you and your dependents won't be subjected to testing for pre-existing conditions and all else that can increase rates or prevent one from getting insurance on an individual basis. I suggest you talk to a local insurance agent with years of experience about this option. I love my insurance agent here in SoCal. Talking to agents from companies like einsurance.com or whatever only gets you the basics and they won't go out of their way to help you.

Edited February 2, 2010 by TraderJen

[thalestrader 14]

  TraderJen said:

Am I missing something here...because to me the solution is pretty darn simple. Why not just start a corporate entity with yourself and a second person to qualify as a small business? Then you could go to any health insurance agent and get small business health insurance, vision, dental, etc... Here in California...

 

As someone who does control several such corporate entities, I'd like to add that most insurance carriers will require "yourself and the second person" to be w-2'd employees, which adds layers upon layers of complexity and compliance to "pretty darn simple."

 

I would also caution that as it goes in California is rarely how it plays in the rest of the world, though Californians like to think otherwise. So anyone considering various legal structures would be well served to consult an attorney licensed in his or her state rather than an internet forum.

 

Best Wishes,

 

Thales

[Cory2679 11]

  TraderJen said:

Talking to agents from companies like einsurance.com or whatever only gets you the basics and they won't go out of their way to help you.

 

I'm in my 20's, not overweight, no medical conditions, live a healthy lifestyle, not married, no dependents, etc., so I personally actually only wanted the basics...basically just disaster insurance.

[TraderJen 10]

  thalestrader said:

As someone who does control several such corporate entities, I'd like to add that most insurance carriers will require "yourself and the second person" to be w-2'd employees, which adds layers upon layers of complexity and compliance to "pretty darn simple."

 

I would also caution that as it goes in California is rarely how it plays in the rest of the world, though Californians like to think otherwise. So anyone considering various legal structures would be well served to consult an attorney licensed in his or her state rather than an internet forum.

 

Best Wishes,

 

Thales

 

I realize some people thrive on rudeness, negativity and pessimism, as it serves their own existence, but how about we reserve such outward shows for less civilized forums like ET. Collaborative environments, which TL aims to be, are rarely assisted by such behaviour.

 

It goes without saying that a structured entity is complex, however, for those of us who are traders and who do consider this their occupation, it shouldn't be that foreign of an idea to consider. For those intelligent and meticulous enough to be of the few who have or do plan to make the leap into leaving their old lives behind to become full-time traders, it would be wise to consult with knowledgeable professionals to properly handle their business and personal needs that would otherwise be built into being an employee of a corporate job. If you are a methodical enough of an individual to successfully venture into full-time trading, then it goes without saying that you should consult with your CPA at the very least; and as I had previously emphasized, a local insurance agent who would know their own state's laws front to back and would take the time to get to know your own situation and needs.

 

I urge you to explore all your options to see what best fits your circumstances. Don't shy away from talking face to face with real professionals versus talking to some anonymous voice over a telephone and don't settle for easy over complex because of convenience. Information from forums is to be taken with a grain of salt, especially trading forums. Many exaggerate and misrepresent to make up for their shortcomings and pathologies.

 

I advise against any quick fixes such as going through online insurance brokers, jumping in head first and going to LegalZoom to start your LLC without first talking to a CPA, buying insurance on the basis of seeing an Assurant TV advertisement or figuring out a way to squeeze your way into a cheap self-employed pool to be eligible for Mega, all for the sake of avoiding up front complexities. Those complexities will save you in the long-run. You may not need it now, but you and your family will need quality rated health insurance in the future. When you're laying on a gurney in the ER, having a battery of tests and scans done with little communication from the stressed nurses and the bitter doctor with a God complex whose solution to everything is to pump you full of morphine or if your doctor utters the word cancer, you don't want to be in a position of worrying about if the best possible hospitals and doctors are in your network, what your co-pays are, calculating your share of costs, if your out-of-pocket has been reached, what claims you'll need to file to be reimbursed because you got stripped down health coverage that doesn't cover the necessary medications that could cost between $10 - $1000 a bottle, or whether you or your loved one will be dropped or fail to meet benchmarks for continued coverage under an individual plan rather than in a group plan that's more highly regulated for your benefit. Also keep in mind that many individual coverages don't cover maternity. I understand that a large majority of traders are guys, and many are single guys that aren't in that frame of mind yet, but there will be a time when you may not want your significant other to keep working just to keep coverage.

 

IMO, It's better to be over-insured through a quality company with a good structured organization on your end rather than being under-insured through a second rate company that you've qualified for based on affiliation to an establishment outside your control. Your situation can turn in an instant. Once the you know what hits the fan, the costs will all come back to bite ya! Of course, this is just my 2 cents.

 

Good luck!

[thalestrader 14]

  TraderJen said:

I realize some people thrive on rudeness, negativity and pessimism, as it serves their own existence, but how about we reserve such outward shows for less civilized forums like ET. Collaborative environments, which TL aims to be, are rarely assisted by such behaviour.

 

I do not believe I was rude at all, and I stand by what I said in my post.

 

Best Wishes,

 

Thales

[thalestrader 14]

  TraderJen said:

You may not need it now, but you and your family will need quality rated health insurance in the future.

 

In Pennsylvania, a self-employed individual can get just such a plan through any of the Blues. I'm with Highmark Blue Shield. I am married with three young children. You do not need to purchase coverage such as you recommend through a corporate entity.

 

Best Wishes,

 

Thales

[TraderJen 10]

OP, and all others in his position, what it boils down to is that you need to consult with a local and well reputed insurance agent face to face to discuss all possible options. There are too many nuances and factors like where you live, how many are to be covered, how you plan on transitioning from employee to self-employed, the health of each person being covered and whether or not you want to avoid some pitfalls and complexities of individual vs group coverage... Too many factors to scratch the surface on what is best for you here. We can only give you information about what works best for us in our own circumstances.

 

For example, for me, in the state of California and with many other states with similar group health laws, with dependents who I didn't want subjected to a barrage of tests to dictate their eligibility, I chose to get coverage by including a family member in a pass-through corporate entity so that we would be eligible for non-discriminatory and fully comprehensive medical and mental health; a defined fixed cost co-pay for prescriptions, labs, diagnostics, ER and hospital admissions; dental and vision insurance at a fraction of the cost of what it would have been if we had gone with individual coverage.

 

As I understand it, for Thalestrader, he lives in an area where those who are self-employed have the option of being covered either through a medically underwritten direct plan (individual and family plan) that requires testing of all for eligibility or a guaranteed plan that covers all without tests, but at a cost double that of underwritten plans; and with all plans offering less benefits than what my particular plan covers. Yes, less complex than what I've chosen, but at a cost and with limitations of coverage. It's all nuance with their own pros and cons..

 

Whatever you decide, just make sure not to quit your job until you've been accepted into your new health plan so you're not subjected to any pre-existing or graduation hiccups.

 

Good luck!

Edited February 2, 2010 by TraderJen