Gotta have it...!
[This is part of the Escaping the 9-5: My Road to ProBlogging series.]
I’ve gotten this question a number of times since becoming a professional blogger and it makes sense, especially if you have a family to feed when you start on your little adventure to become a blogger full time.
Without health benefits in line I would never have really considered making a move from the 9-5 into ProBlogging!
Besides the obvious financial concerns that a blogger should have (which can be many, but just make sure you “stay in the black!”) there are other ones like health insurance and health benefits that you’re going to have to either forgo or figure out. Most people will attempt the latter and begin the process of getting some.
There are only so many options (that I’m aware of) and please don’t consider me an expert in this subject at all! In fact, hopefully this blog post will give an opportunity for the real professionals to step in and offer some counsel and advice as well.
But here’s what I did to get health benefits and health insurance as a blogger:
COBRA Insurance:
I knew that there were a couple of different options but I first started with COBRA which stands for The Consolidated Omnibus Budget Reconciliation Act and essentially it gives workers and their families continued group coverage and health benefits via their old employer.
For example, I left my full time job and continued to use their medical plan (called “continuation coverage”) for a bit even after I had left. Here are some things that I know about COBRA:
- It’s not cheap, but it works and for continued coverage in a plan that you and your family needs it does the job.
- Pricing is dependent on a number of different factors.
- Stipulations, coverage, and cost can be gotten (typically) directly from your old employer.
You can find out more here at the U.S. Department of Labor website.
Personal Insurance:
Although I applied, was accepted, and started on COBRA I knew that it wouldn’t be the best option, especially from a financial perspective. I thus began my research into getting personal insurance through a national and/or local vendor.
To be sure, I was not a professional and didn’t have a clue where to get started, but I asked my personal network for advice, asked questions via Twitter, and got a slew of recommendations for services to try.
Ultimately I connected up with a very strong and trusted referral via my brother who had been doing the same type of research (and I’m sure there’s someone in your network who has done a lot of the legwork already and who can give you all this information!) and started working through her as a local broker for health insurance plans.
She did a great job and presented me with 2 quotes from different sources (Blue Cross Blue Shield of Georgia and Kaiser Permanente) breaking down all the benefits, structure, and costs.
I’ve provided a screenshot of that Microsoft Excel document that she gave me so you can get an idea of what it looked like:
It was a very comprehensive outline of costs, benefits, etc.
As you can see it was a very robust document and my health insurance broker (email me if you’d like her contact info, she is the best!) broke it down and then I made a decision.
For a general overview the plans were very similar with one offering a bit more here and there than the other. The cost wasn’t too big of a difference either and I opted for BlueCross BlueShield in the end.
Despite the $900 price tag it was still $6 or $700 dollars cheaper than COBRA so I was doing alright in my book. And, the biggest factor was that my previous employer’s health insurance was BCBS of GA as well so our coverage wouldn’t change really at all and we could keep all the same doctors and physicians that we had already invested time and emotion into (and who we trusted).
So that’s what we went with, BCBS of GA with Health, Vision, and Dental coverage. I’m a very happy customer!
Small Business Insurance (for 2+ Bloggers):
The final option which I also began research in earnest was getting small business insurance for my startups and personal LLCs. At some point I will offer health insurance to my team and wanted to see if establishing that now would be beneficial for myself financially and my partners as a solution as well.
As it relates to blogs and being a blogger at some point you might also want to consider C/S-Corp or going the LLC (Limited Liability Company) route for your blog (turning your blog into a business) and if things continue to head in the direction that I am so far this will definitely be something I do down the line for TentBlogger.
Some Final Thoughts:
As I mentioned before, I ultimately went with personal/family insurance and that’ll be just fine for now as I coordinate my efforts with my team and as my blogging business grows, but it’s something to consider as an option as you do your research.
Ultimately you have to spend the time and energy to do the research and get all the information that you need to make the very best decision. For myself and my family (of 4) not having insurance was not an option as so I needed to make sure that I could adequately supply our needs comprehensively.
Just make sure you do the math, especially as you get closer to perhaps making that jump into professional blogging and make sure that your blog won’t hold you back (or down) financially as you take that leap of faith! A few bullet-point ideas to capture:
- Do the math! Make sure you can afford it!
- Start today, especially if you’re considering moving into full time blogging. Don’t make the decision after you jump off the cliff!
- Do your research, it pays big time.
- Talk with your existing employer about continuing coverage options.
- Trust your existing network and get a trusted referral if you can. Ask around. A lot.
- Get multiple quotes, consider all options.
- Do the math, again.
Good luck, and please feel free to add to this in the comment section if you know more about this than I do!
[This is part of the Escaping the 9-5: My Road to ProBlogging series.]
Another option for finding coverage for health benefits online is eHealthInsurance.com (http://www.ehealthinsurance.com/). It allows you to compare coverage options from multiple carriers to find the best available option for you and your family.
The only think that I would add to your advice is to line up your new insurance before you cancel your existing policy or leave your current position. That way, there is no gap in your coverage. Insurance companies also like to insure people who are currently issued.
Do you think you’re better off going for the larger carriers that are accepted everywhere? I’d be worried that a smaller company would severely limit my access to docs.
I had a little baby that had seizures, and I’d pay an extra 50-100 bucks a month for the peace of mind to know that I’ll be able to go where I want to go. That is, if the other plans are restrictive. They may not be! I’m really curious.
wow. serious question here… for sure. i’m no pro but i would “think” that larger carriers would be able to handle that better than smaller ones, right?
Hi Loren,
I’m sorry to hear about your baby! I hope all is now well!
And yes, larger carriers in general, have larger and better networks, and are more widely accepted by doctors and specialists.
Based on what you said, you want to look for a “PPO” because they have “out-of-network” benefits, larger networks, and referrals are not required to see specialists.
Stay away from an “HMO”. They are much more restrictive with regards to leaving your network. In fact, HMO’s don’t have any out-of-network coverage at all, so if you had to see a specialist in the next town/state over and they were out of your HMO’s network, you would have no coverage at all. And on top of that, you need a referral/pre-approval to visit a specialist.
Hope that helps!
That is helpful. And my baby’s fine! 3 years old now and he’s perfect. Just a fluke thing because he had low iron. God works through everything – even healing through iron supplements.
That’s awesome news man! I have a 2.5 yr old son, and I don’t know what I would do if something went wrong. He is my whole world! You’re right, God is good!
ah… for sure!
awesome. great to hear!
thans don! love this free resource…!
and yes, i definitely wanted to line it up before leaving but i got sidetracked… as a result i was without coverage for 30 days and paid over $1,000 in medical costs that month… ouch.
lesson learned!
My day job is as an insurance broker here in PA (i know i know, very boring right?) but if I could throw in my $0.02, I would tell every incorporated blogger who is serious about it and blogging for income, to get a CGL (commercial general liability) policy, or a BOP (business owners policy) which covers your business personal property as well. I’d opt for the BOP personally:) If you already have one of these policies, ask your carrier if you are covered for “personal injury” (a.k.a. libel, slander, defamation of character, advertising injury) This is very important coverage for a writer/author/blogger! I will be getting one for my blogs as soon as they are up and running!
Depending on your policy set-up (if you have one) you may already be covered for “personal injury”, but often times it has to be purchased separately as an “endorsement” on your CGL or BOP policy. And, sometimes it’s only available under an “umbrella” policy. An umbrella policy is a liability policy that shadows your existing homeowners/auto/CGL/BOP policy and provides an additional 1mill-10mill limit of liability coverage in the event you are sued, and your base policies aren’t enough. This happens more than you might think:(
If you’re not incorporated and doing it out of your basement, you can still be sued. If you have homeowners or renters insurance, you have a coverage called “family/personal liability” coverage (usually 1-500k), but that doesn’t mean you’re covered for “personal injury”. Some insurance carriers can easily add this to your policy, but some only offer it on an “umbrella” policy. You will likely have to re-adjust some of your base coverages in order to qualify for an umbrella, but it might be worth it if you’re a serious blogger!
If you have any other questions about it just let me know:)
Chris, any thought on what that runs?
Is it possible to narrowly get insurance for just libel, slander, etc. I’m a one-man, out-of-the-basement business, so I’m not worried about people slipping and falling. And I’d imagine it wouldn’t be worth it to me unless I could separate those somehow.
To my knowledge, you can’t just purchase a stand-alone “personal injury” policy (it’s generally a feature that is added to an existing liability policy), and you probably wouldn’t want to do that anyway because a BOP offers a lot of other beneficial coverages that would likely apply (like loss of earnings and/or business personal property coverage), and for not a lot of money. You can usually get a BOP policy (which you can attach the “personal injury” coverage to if it’s not already included) for about $300-$500 for the whole year depending on the coverage limits you select. It goes without saying that the higher your limits are, the higher your rate is, but a good starting point would be a 500k “per occurrence” liability limit with the personal injury rider. A full-time “pro” blogger (especially one doing it as their main source of income) would likely want to start out with a $1million limit with the personal injury rider, and possibly even an umbrella policy on top in the event of a major lawsuit.
Hope this helps!
you sir are a champ…….!
can you email me about this? me@john.do
thanks!
Thanks man! I’ll send you some more detailed info about it today!
can’t wait… got an idea….
I sent it to you earlier bud at your me@john.do….let me know if you didn’t get it:)
weird. didn’t get it.
ah. it went to spam…
This is something I’ve really been thinking about lately. I am self-employed and have my own insurance. But in NC, when you are the only one working at your business (even if you’re a corp or an LLC), they max your rate automatically. Ouch. I know I need to shop for more and a personal insurance plan may be the best. Also, don’t forget that (I think) if you have health insurance as an employee benefit (like I do) then you can deduct it as a business expense.
The one question I have, and no one may know this, is how ObamaCare will affect this. When it passed, I was sent all these notices that say that I can keep my insurance as long as I don’t make ANY changes. They had the word “any” bolded, underlined, and all caps.
I’m almost thinking of just sitting with what I have now for another year just to see how things shake out some more.
Oh, and another thing: if you have a high deductible plan – get an HSA (Health Savings Account)!
You’re right the write-off is great, and the high deductible plan is the way to go in my opinion too (my family has a 2500 deductible, then 100% coverage for everything after/if we satisfy the deductible).
Why pay a much higher monthly premium, just so you can pay a $10 co-pay at the doctors? I know everyone’s needs are different for sure, but I’d personally rather self-insure on the small stuff to save a ton on the monthly premiums (and you still have great coverage for a catastrophic occurrence with the high deductible plan).
chris,
i really value your input in this area. just wanted to publicly thank you for your awesome comments!
My pleasure John! I’m just glad to contribute to this awesome Tentblogger community you have created here!
Glad to help:)
loren,
i’m with you here… i wish i knew more about obamacare and all that’s happened with the change in policies.
We also had a lot of success using one of Dave Ramsey’s ELP’s (Endorsed Local Provider) to find the best insurance policy for our family. Still not a professional blogger yet, but maybe someday! (And in the meantime, insurance is incredibly important).
i tried using that but it didn’t help much. must have been a bad attempt… i didn’t get callbacks from anyone… odd, right?
I think something else that should be highlighted is pre-existing conditions. Although the new healthcare law has some clauses about this, I believe right now only children are protected. If you are going to cobra keep in mind finding your own policy may be difficult if you are being treated for any condition. Including any mental health issue. Make sure you know if your prospective insurance will cover counseling and how many sessions if therapy is needed. If you have been denied because of a pre-existing condition many states offer a high risk pool to ensure coverage.
http://www.healthinsurance.org/risk_pools/
I just thought I should mention this as a consideration because some who turn to blogging for income do so because of a disability that prevents them from other work.
http://www.csmonitor.com/USA/Politics/2010/0324/Health-care-reform-bill-101-rules-for-preexisting-conditions
Great point, Susan. I looked at options while my husband was unemployed a few years ago. All 3 of us turned out to be uninsurable. I expected my husband would be turned down, because of diabetes, hypertension, and heart attacks. No one would take an application for my son. He’s healthy, but bipolar and a high-functioning autistic. Then 17, he didn’t require the expensive autism treatment that companies use to deny coverage. Nevertheless, he was “ineligible”. And I have degenerative disc disease. The rep took my application, but I was rejected immediately.
Thanks for the link about health insurance high risk pools. We’re in the same boat again. My husband learned his kidneys are failing the same day he was asked to resign from his current job. I’m glad to see Kentucky has some options for those of us considered high risk.
I’m glad you found the info helpful Bonnie.Another option depending on your income is applying for medicaid.
https://www.cms.gov/MedicaidEligibility/01_Overview.asp#TopOfPage
If you qualify for Social Security Disabilty you can get medicare after a period of 24 months.
http://ssa.gov/pubs/10043.html#part3
That is about the end of my knowledge on the topic. I hope this helps!
susan,
you are awesome. can i say that?
bonnie,
i’m sorry to hear about your struggle and i’m thinking about you today.
susan,
thanks for this clarifying comment! you’re right about pre-exist… important to be aware of those things as well.
i have a few myself.
Thanks for your transparency, and sharing your life with us, John.
I’ve been wondering what you do about health insurance, because I’m finding myself in a position where I am transitioning careers with a family of soon-to-be 4. My wife doesn’t seem to be worried or anxious about the possibility of not having health insurance (which is rare), but I keep thinking of the risks of that (though, we’re also blessed to have a doctor in the family).
It’s great to see and hear the challenges you faced (and continue to face) as a person in business for yourself. Thanks, John!
jason,
wow… your wife must be freaking awesome!
we weren’t terribly concerned… probably me more than my wife, but i didn’t want to take any chances, right?
You got it – my wife is awesome. I’m the same way – more concerned about it than she. Did you ever look into those ‘Christian Shared Cost’ plans? Just curious – they don’t seem quite as ‘thorough’ as regular insurers.
If you want to learn more about Obama-care, my father-in-law (a family physician) has a blog that I setup for him quickly (thanks, Standard Theme!). He concerns himself with health-care politics and more. If you have specific questions for him, i can forward those to him. His blog is at: http://www.richardedgerlymd.com.
jason, thanks for this. will take a look later this evening.