Being a part of a local professional organization is great exposure for my business. I am able to meet other professionals that can not only help me and my business, but the clients I serve as well.
-Consultants and Health Insurance
Submitted by Justin Beller on Monday, Oct 05 2009 - 08:58am
These days, you can’t turn on the news without seeing or hearing some story having to do with our nation’s health care debate. Working independently, consultants take on many expenses. One of them is health insurance.
ConsulantJournal.com offers up some tips for health insurance. It’s a great post, but I’d like to add one point to consider regarding health insurance (covering medical expenses) if you are needing to purchase it for yourself and your family. Most employers in addition to offering health insurance to their employees offer Health Savings Accounts where you set aside money, tax free, to use specifically for medical expenses. These accounts will hold money for up to one year, but it is a use it or lose it proposition. If you don’t use all of the money, you forfeit the unused portion. It does not carry over.
As an independent consultant, you can set up a simple savings account to dedicate to medical expenses. Sure, you may have to pay taxes on any interest made and there may be some risks that come along holding such an account, but it’s better than losing all of it if you don’t use it. Most people are unaware that medical expenses can be paid in cash, provided of course you can find medical professionals that accept cash payment. It’s a little difficult to find them, but ask around. As your doctor! You may be surprised to find good medical professionals in your area that accept a cash payment for services.
FSA vs HSA
Actually, you've described an FSA (Flexible Spending Account)
This is how the HSA (Health Savings Accounts) work - very different than an FSA and much better for self-employed http://post.ly/7NhH
Thank you for clarifying
Thank you for the clarification. It just goes to show that all of this is very confusing. As consultants we have different needs and do not depend on an employer to provide this benefit. Personally, I feel that the lack of portability in health insurance is one of the major issues and central to the debate of health care reform. The solution to health care reform can be found in simple, easy changes to the rules and regulations governing the purchase and use of health insurance. Unfortunately politicians in Washington have politicized the topic and have made it far too complicated for anyone to understand.
Post new comment