Health Care option for freelancers like me?

Following links to links to links you often find interesting older posts. So it was as I followed a link that started out at one of the Corante blogs and found an old post from Regina Miller about joining a "freelancers' union" in New York to get access to their health coverage.

So, here is the breakdown of rates on the Working Today.org site.

Remember my ActorMan friend who only found really, really expensive individual health plans while living in NY, and the explanation that guaranteed issue and community rating contributed to this problem?

The Freelancers Union rate may be higher than, for example, my individual plan rates, but they beat the hell out of New York's individual plan rates. I took a quick look at the benefits, and they seem reasonable...that is to say no better or worse than mine. Now it's only for New Yorkers, although they provide a list of other resources for people who live in other states.

I wonder, are there unions like this elsewhere in the country?

It certainly is an option that other sole proprietors like me should keep in mind. Just remember two things:

1. Remember to check into the level of benefits carefully. Go back and read this post to be reminded how sometimes "association" health plans offer access, but not equivalent benefits to groups plans.

2. Remember to check out where your state falls in the health insurance affordability report. Chances are affordable individual insurance is available if you're not in a handful of states with similar regulations to New York's. And the advantage to doing an individual health plan search in such a case is that you'll likely have more flexibility and more options.

Comments

[Bob]

Yes, there are union plans, and association plans available to most self employed individuals. The real merit to these plans is debatable.

I am not totally familiar with NY insurance law, but I suspect the price/benefit differences in the union plan vs. individual coverage stem from how each plan is defined. A true group plan will automatically fall under different regs from an individual in every state. Most, but not all of the association plans are usually individual policies issued through the umbrella of an association endorsement. This kind of quasi-group plan is more like individual coverage, but is permitted to bypass some, but not all, of the state mandates imposed on domestic plans.

As with anything else, you get what you pay for.

One must also note that not all union or association plans are as billed. About 2 years ago a union plan operating out of NV was attacked by several state insurance commissioners and AG's. The plan was a self-funded MEWA that found itself in trouble because of inadequate premium revenue. It even had an official sounding name (Employers Mutual).

The pitch should have made bells go off in consumers heads, yet many bought a deal that was too good to be true. No underwriting. Pre-ex is covered. Everyone accepted AND the price was lower than anything on the market.

Is it any wonder why this plan went under?

Many were left with unpaid bills in the hundreds of thousands of dollars. As a self funded plan there were no safety nets as would be the case with a fully insured plan so state guaranty funds did not come in to play.

At last report the folks who ran this mess were out of country and not expected back any time soon.

Imagine that . . .

[Elisa Camahort]

That is quite a cautionary tale! And those are the kinds of problems one that most people wouldn't even find out out about...until they needed the catastrophic coverage!

[regina]

Hi Elisa - sorry I have been remiss in touching base with you on this and saying thanks for checking in and writing about this. I just got some updates from the Freelancers Union on some reports, etc.
and have updated post and will trackback to you! Regina