Health Insurance For Freelancers
Today, I'd like to address an issue that a lot of freelance photographers face: The task of buying individual health insurance.
Like so many of my peers, I want health insurance, but cannot afford the premiums even my husbands employer wants from me (something like 250 bucks a month). So I've been on the lookout for good, affordable health insurance by a reputable company for a while now.
A few months back, a fellow freelancer warmly recommended Pacific Source, an Oregon-based company with terrific rates and a very high consumer satisfaction rating. I instantly downloaded their lenghty application, filled it out and sent it in. 3 weeks later, I get a letter of rejection.
Now, I'm one of those blessedly healthy individual who doesn't see the point of going to the doc unless something seriously traumatic happens (like I'm suddendly missing a limb, or the like - for which I *do* would like to be insured though). But apparently the fact that I was honest and told Pacific about a rotator cuff injury I sustained (and healed out) last winter while shoveling snow, was enough for them to turn me down. I was bummed.
Suddenly though, my mailbox filled with ads for health insurance for the self-employed. I didn't bother to take a closer look, until today, when a lady named Sally Hite called me and wanted to set up a meeting to "customize a quote" for me. I indulged her for a bit, telling her about my Pacific Source experience (she didn't seem to concerned with my rotator cuff problem), trying to glean as much info as possible from her through her hard sales pitch about the company she represented . She told me she worked with/for Mega Life & Health Insurance, but upon requesting she'd send me some information about the company prior to the meeting, she told me she'd rather not send anything because "most consumers don't understand the information anyway, and I'd rather not get you confused". Aha. I'm an idiot. News to me. But hey. She fussed even when I asked for a website URL.
So while still on the phone, I pulled up the company's website - where I found no information of any use, except the impression that for a national insurance company, they sure didn't splurge on web design costs. I finally hung up, and smelling the rotting fish from a mile away, went looking online for more information on the company.
Of course what I found was less than encouraging:
The Texas Dept. of Insurance had a lengthy profile of the company, complete with a history of fines Mega had incurred in the past years for "market conduct".
Selfemployedweb.com had an interesting article on deceptive practices some health insurance companies employed to get people to sign up - with Mega Life and its parent company, UICI, highlighted as an example for just such practices.
And then there was this interesting note in the article, saying how insurance companies employed associations and other similar groups to help them sell insurance. That's when I remembered that Sally had mentioned that I would need to sign up with the NASE (National Association for the Self-Employed) to be eligible for her insurance. And looky here - the NASE wants $96 just for their basic membership, with "benefits" that seem only a thinly-veiled list of companies that just love to market to the self-employed.
Add to that this fascinating thread in the Google Answers forum - and I swiftly cancelled my appointment with Sally. This little gem from a PR Newswire report in particular did it for me: Since late 2002, UICI has been beset by lawsuits alleging the company sold insurance policies through business associations without properly revealing close links to those organizations. The associations, including the National Association for the Self-Employed and the Alliance for Affordable Services, were managed by executives with direct ties to UICI.
So the moral of this rather lengthy post? Fellow freelancers out there beware - there are insurance companies on the loose with less than stellar morals, trying to take advantage of you. If you can, instead sign up with the AMSP, and get insurance through them. Of course the hang-up here is that their conditions specify you to need "three or more consecutive years of substantial publication experience" and you need two ASMP members to sponsor your application...
I'm not quite there yet, so I'm still looking for insurance. If any alert readers come up with any bright ideas, email me or post in the comments.
Like so many of my peers, I want health insurance, but cannot afford the premiums even my husbands employer wants from me (something like 250 bucks a month). So I've been on the lookout for good, affordable health insurance by a reputable company for a while now.
A few months back, a fellow freelancer warmly recommended Pacific Source, an Oregon-based company with terrific rates and a very high consumer satisfaction rating. I instantly downloaded their lenghty application, filled it out and sent it in. 3 weeks later, I get a letter of rejection.
Now, I'm one of those blessedly healthy individual who doesn't see the point of going to the doc unless something seriously traumatic happens (like I'm suddendly missing a limb, or the like - for which I *do* would like to be insured though). But apparently the fact that I was honest and told Pacific about a rotator cuff injury I sustained (and healed out) last winter while shoveling snow, was enough for them to turn me down. I was bummed.
Suddenly though, my mailbox filled with ads for health insurance for the self-employed. I didn't bother to take a closer look, until today, when a lady named Sally Hite called me and wanted to set up a meeting to "customize a quote" for me. I indulged her for a bit, telling her about my Pacific Source experience (she didn't seem to concerned with my rotator cuff problem), trying to glean as much info as possible from her through her hard sales pitch about the company she represented . She told me she worked with/for Mega Life & Health Insurance, but upon requesting she'd send me some information about the company prior to the meeting, she told me she'd rather not send anything because "most consumers don't understand the information anyway, and I'd rather not get you confused". Aha. I'm an idiot. News to me. But hey. She fussed even when I asked for a website URL.
So while still on the phone, I pulled up the company's website - where I found no information of any use, except the impression that for a national insurance company, they sure didn't splurge on web design costs. I finally hung up, and smelling the rotting fish from a mile away, went looking online for more information on the company.
Of course what I found was less than encouraging:
The Texas Dept. of Insurance had a lengthy profile of the company, complete with a history of fines Mega had incurred in the past years for "market conduct".
Selfemployedweb.com had an interesting article on deceptive practices some health insurance companies employed to get people to sign up - with Mega Life and its parent company, UICI, highlighted as an example for just such practices.
And then there was this interesting note in the article, saying how insurance companies employed associations and other similar groups to help them sell insurance. That's when I remembered that Sally had mentioned that I would need to sign up with the NASE (National Association for the Self-Employed) to be eligible for her insurance. And looky here - the NASE wants $96 just for their basic membership, with "benefits" that seem only a thinly-veiled list of companies that just love to market to the self-employed.
Add to that this fascinating thread in the Google Answers forum - and I swiftly cancelled my appointment with Sally. This little gem from a PR Newswire report in particular did it for me: Since late 2002, UICI has been beset by lawsuits alleging the company sold insurance policies through business associations without properly revealing close links to those organizations. The associations, including the National Association for the Self-Employed and the Alliance for Affordable Services, were managed by executives with direct ties to UICI.
So the moral of this rather lengthy post? Fellow freelancers out there beware - there are insurance companies on the loose with less than stellar morals, trying to take advantage of you. If you can, instead sign up with the AMSP, and get insurance through them. Of course the hang-up here is that their conditions specify you to need "three or more consecutive years of substantial publication experience" and you need two ASMP members to sponsor your application...
I'm not quite there yet, so I'm still looking for insurance. If any alert readers come up with any bright ideas, email me or post in the comments.
posted by Simone at 1:20 PM
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8 Comments:
Hi Simone,
Sorry to hear about your painfull experience. It probably would have been worse had you acually taken one of those policices and gotten sick hospitalized or etc.
I don't know if we have reps in your end of the woods but check out www.nationalbusiness.org and you can see what a real business organization has to offer.
All insurance companies have slightly different underwriting criteria. Most will want to wait 12 months after you have had a medical procedure before you can be considered. All companies try to limit liability this way. Contact a licensed insurance broker in your state and ask for competetive quotes. Just decide first how much of a deductible you can afford. The higher the deductible the more affordable the insurance. If you can, look into a Health Savings Account (HSA). It is like an IRA but for medical expenses and costs. A good informative website is www.hsabank.com. If you have questions use the link in my webpage.
Max
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Here is what kills me. Mega actually has some really good plans to offer. With all the bad publicity because of the work of a few bad agents, there are a good many people who will never benifit from it. Here is the scoop. Mega has indemnity plans ( the ones you hear people complain about ) PPO plans (which provide decent coverage + you have the advantage of a network when it comes to your bill),HSA's, and Catastrophic Plans which provide hospitalization coverage second to none. Mega is also rolling out a true Major Medical Plans in some areas.
As far as the NASE is concerned, here is a little known fact. In many states, you can cancel the NASE membership after the first month and keep the insurance. You only need to be a member of the NASE to apply for the insurance, not to keep it. The other option is to keep the NASE membership and actually use the benefits. The big problem is many people never think to use their benifits. How many people have AAA and never use the discounts when they go out to eat or stay at a hotel.
In short Simone, be educated about the product before you buy. Let the agent come out and ask lots of questions. If the Mega Major Medical Plan is out by you, I strongly recommend you take a look at it.
Hi Simone,
I used to work for MEGA/UICI/UGA/NASE/AFS (they have about a million names). Please Don't believe they have policies to help out the self-employed. They have policies to help themselves and the agents that sell them - $$.
They hire people with NO insurance experience and tell them a lot of stories. If you ask questions about the policies they scam you on the answers. They are the most deceptive and unethical group I have ever worked for.
I am embarassed to tell you my name. I felt like I deceived the people I sold the policies to. When I found out everything about the policies and company ties, I quit. I also contacted all of my clients and signed them on better, major medical plans.
Please tell anyone that will listen to stay away from the NASE or any other UICI company.
Also, National Business is NOT any different. All of these associations have ties to the insurance companies, usually through family members!
HSA plans are OK, but there is not a smart financial investor that would put his own family on it. There are a lot of hidden fees, the rates are not discounted enough, and you have a to pay a lot of first dollar cost.
Good luck,
An ethical and honest insurance agent in Texas.
Thanks all for the good - even if conflicting - feedback to my writing.
With a recent article in the NYT about how MEGA keeps screwing people, I'd say the evidence is overwhelming that there is no reason to buy health insurance from them.
I congratulate the insurance agent from Texas who quit working for them for ethical reasons - people like you - who put social responsibility and honesty before their own financial gain - are what this country needs more of.
If anybody has any solid recommendations for a reputable company who can provide affordable health insurance to freelancers, I'm sure readers (as well as myself) would be most grateful.
Simone and all who are on their own for their insurance:
I, too, like the agent from TX, started in insurance with MEGA. After studying for my insurance license exam, I spent 3 months trying to sell their products. I was preyed on as an ignorant agent. In those 3 months, I saw policies IN-FORCE with my clients, and I read about their coverages. In my mind, a tape was playing back all the propaganda I had been fed about how the MEGA relationship was superior to all other insurance companies. What hooey. I'm just glad I only sold to people that didn't previously have insurance (at least they got SOME help).
I have since educated myself and am now a proud Insurance Professional of more than 2 years. In a way, it was good for me to start at the bottom (and I mean the VERY bottom) of this industry, because now I am very prudent and responsible when researching companies to do business with. I have branched out into life insurance, estate planning, long-term care insurance, retirement planning, disability protection, and a few other ventures. I still am a health specialist, though, because that really is the area of greatest need for most people--there are pitfalls you don't even realize, and it's your agent's job to point them out to you (talk to a broker that doesn't owe any company anything so you can be sure you are getting an unbiased opinion--also, ask what insurance THEY carry).
I can't recommend any one company to you, because every company is so different. I can say, however, that some companies you should consider, if available in your state, are: Blue Cross, Fortis/Assurant, World, Medical Savings Insurance Company, Golden Rule, American Republic, and New Era Life. Not all carry major medical policies (though you should get that if affordable for you), and not all have the best track record for rate increases. I don't even do business with all of these companies. But, I can tell you, that if something very serious happened to you, you would be glad to have coverage with them because they do what they say.
If any of you would like to talk about your health insurance coverage, I would be glad to help you understand what you have, and see if there is any reason you should compare with competitors (while you are still healthy). I am only licensed in South Carolina, so I can't sell anything outside of my state, but the reason I got in this business was to help people fix their problems. So, even if you are out of state, give me a ring--I really would be glad to help.
With sincere love, concern, and professional excellence,
Jeff P. (864) 848-9606 office
Simone,
here is what i got in my emails today.
I saw your resume on the internet and it interested me. If you are willing to ethically do what is necessary to succeed financially and earn a far above average 6 figure income, we may have a position for you here at NASE/AFS. This is a sales position that answers the needs of a large and growing market. It’s a product that saves the consumer more than it costs. We supply leads, health benefits, training, retirement, production bonuses and sales contests. I need self-disciplined go-getters A.S.A.P.
Curious? To learn more, call 703 421 6827. Ask for Henry. If no answer, leave a message identifying the purpose of the call and a daytime phone number.
No emails please!!
Thank you so much Simone! I was about to answer a job ad email UGA had sent me. Thanks for the info!
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