Q. Hi Jordan!
I’ve been a reader from the beginning and really don’t ever do things like send emails to bloggers I like (I prefer to be inspired and admire from afar) but I felt like you may be able (and more importantly, willing) to offer an honest answer to this question that a lot of people seem to gloss over while they’re encouraging you to “strike out on your own!”, “change your life”, “take the leap” etc etc.
What about health insurance? What if you’ve reconciled with the fact that you may not make a steady paycheck but can focus on something you love…but can’t get past the idea of being uninsured or paying $500 a month for insurance or remaining on your employers plan for 18 months only to ….. do what when it runs out?
I’m sure you don’t have all the answers (no pressure, really) but I thought it may have been something you faced when deciding to quit your job (yes, your one year anniversary prompted this email). So any advice you may have would be much appreciated. I feel like a lot of other readers may feel the same.
Thanks and keep it up!
Katie
A. Hi Katie! First: I’ve never understood why so many bloggers/people employed in unconventional fields are so uncomfortable talking about the logistics of how they do what they do. It just seems like…you know, we’re all in this together, right? So let’s help each other out. I tried very hard to get answers to these questions from others in similar positions when I started out, and found it nearly impossible to get a straight one, which was…frustrating, to say the least. Disconcerting. Even scary. Anyway…that’s a long way to say of course I’m happy to answer your question to the extent that I can. (FYI: I did a post last September about Health Insurance for the Self-Employed that you may find useful.)
A caveat, before I begin: this is just my experience with/thoughts on the subject; I’m of course not an expert on this stuff (and Very Important Stuff it is), so I’d love to hear other readers’ ideas/experiences with finding ways to secure low-cost, excellent-quality health insurance while self-employed – especially if this is your field of expertise.
When I left my job, Kendrick had just gotten one with good health insurance coverage. Had he not, things would have been much, much tougher for us, because a couple of pre-existing conditions meant that a break in insurance simply wasn’t an option for us. So what would I have done if his job hadn’t provided coverage? Either gone for my company’s (unfortunately very expensive) COBRA coverage** or looked into options such as Healthy New York and bartended to make up for the cost of insurance until my contribution to our family’s finances stabilized to the point where I didn’t have to (said stabilization happened a few months ago, within the timeframe of what was comfortable for us). I didn’t end up finding a bartending job, because we were able to make do for awhile and we jointly agreed that it was important for me to give my new pursuits my full attention. I didn’t want to bartend, of course – I wanted to take all my time to focus on what I was doing – but the truth is that I would have done whatever I had to to ensure that my (admittedly risky) career shift didn’t impact my family’s health, because there’s nothing more important than that.
Hope that helps. And thanks for reading 🙂
**One important note about COBRA: the maximum that your employer can charge you is 102% of the total premium cost (that’s 100% plus a 2% processing fee), but the 2009 Stimulus Package included a a temporary COBRA premium reduction for eligible individuals. You may be eligible for the premium reduction (to 35% – FANTASTIC) if a) you were involuntarily terminated between 9/1/08 and 5/21/10 in conjunction with a “qualifying event” (such as reduction in hours), b) elect for coverage, c) are ineligible for Medicare, and d) are ineligible for coverage under any other group healthcare plan (such as if your spouse is covered).
To read more about the Premium Reduction Extension Provisions, click HERE.
