August 24, 2004 10:38 AM

Damned if you do and damned if you don't
Posted by at 10:38 AM

A report by the Kaiser Family Foundation is showing that the number of self-employed people going without the safety net of health insurance is on the rise, up from 24.6 percent in 2001 to 27 percent in 2002.

If you're recently unemployed or self-employed it's indeed a difficult choice whether to pay out for benefits, make the car AND mortgage payments, and oh yeah, eat. But insurance is what it is: A huge pain in the wallet, but usually worth every red cent when it counts the most. In fact, many financial planners will advise you to try to keep insurances up in such situations as one major catastrophe could easily make a strained financial situation, worse.

While most recently unemployed may initially go for COBRA coverage, there are some potential less-costly alternatives in healthcare if your stint is a long one, or if you're resigned to be an indefinite 1099'er:

• Shop around: Contact local chambers of commerce, professional groups, and small business associations in your area and try to get on as part of a group plan that can help lower your monthly costs.



• Contact individual providers directly and try to set up your own group, even if you're the only employee in it. Depending on the coverage you elect you may find you're not losing many benefits or paying significantly more than when you were a full-time employee.



• Get work through a temp agency that offers benefits to its contract employees. While the agency will take a bite out of your take-home pay, it may balance out.



• Try contacting small business insurance brokers. They too may be able to get you on a group plan with lower monthly premiums.



• Check in with your state office of unemployment. If you qualify under certain conditions you may be eligible for benefits from the state.