76. Look into a health savings account
One of the yuckiest things about being self-employed is having to deal with the whole issue of an individual health insurance plan. And pay up the you-know-what for it. When I started my business a few years ago, I got on with Blue Cross Blue Shield with their lowest premium/highest deductible plan. A $5,000 deductible. So that was a gamble. And I ended up meeting the deductible one year and coming close another. Not fun.
I've heard a little bit here and there about the new Health Savings Accounts (HSAs) and became intrigued so I put it on my list to look into one to see if it might be a good solution for me. Well, I did all the not-fun work of looking at plans, comparing plans, filling out applications and all that jazz. I still am not sure that an HSA is a good solution for me, but I am now the proud owner of one that has the same premium I'm used to paying and only has a $2,500 deductible. So we'll see...
I guess the jist of the Health Savings Plan is that your monthly premium goes into a savings account that is tax-free and accumulates there. Whenever you need to pay any medical expenses (including any money towards your deductible, or even for over-the-counter medication) you can use the money out of that account. And once your deductible is met, your insurance kicks in. So I'm pretty sure it's a good deal. All of this kinda stuff makes my head spin.
My plan is to try to put away a good chunk of money this first year in my HSA so that I have that emergency fund in case something does happen where I need to meet my deductible. Once I have that there, I will feel good about only paying my premium into the account each month.
So there you have it. Not such a fun one to check off the list, but it's done!!
One of the yuckiest things about being self-employed is having to deal with the whole issue of an individual health insurance plan. And pay up the you-know-what for it. When I started my business a few years ago, I got on with Blue Cross Blue Shield with their lowest premium/highest deductible plan. A $5,000 deductible. So that was a gamble. And I ended up meeting the deductible one year and coming close another. Not fun.
I've heard a little bit here and there about the new Health Savings Accounts (HSAs) and became intrigued so I put it on my list to look into one to see if it might be a good solution for me. Well, I did all the not-fun work of looking at plans, comparing plans, filling out applications and all that jazz. I still am not sure that an HSA is a good solution for me, but I am now the proud owner of one that has the same premium I'm used to paying and only has a $2,500 deductible. So we'll see...
I guess the jist of the Health Savings Plan is that your monthly premium goes into a savings account that is tax-free and accumulates there. Whenever you need to pay any medical expenses (including any money towards your deductible, or even for over-the-counter medication) you can use the money out of that account. And once your deductible is met, your insurance kicks in. So I'm pretty sure it's a good deal. All of this kinda stuff makes my head spin.
My plan is to try to put away a good chunk of money this first year in my HSA so that I have that emergency fund in case something does happen where I need to meet my deductible. Once I have that there, I will feel good about only paying my premium into the account each month.
So there you have it. Not such a fun one to check off the list, but it's done!!
Comments
