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I recently left my job to work on starting up a small software company.

While I was employed, I paid about $70 a month for health insurance. I'm on COBRA now, which costs $560/month.

Do I have any other options for more affordable coverage? My biggest concern is being covered in the event that something serious, expensive and unexpected happens; paying a little more for doctor's visits is not as big of a concern for me.

How have other people dealt with this?

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Its a tragedy that you have to consider such things in a first world country. Having recently left my position at work to begin a startup it is so nice to realize that this issue has never even crossed my mind. I hope you guys get through to your lawmakers cause its an absolute disgrace. – Maxim Gershkovich Feb 5 at 0:14
Where are you located? – Joe Baker Feb 5 at 6:23

5 Answers

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You can also try working with an insurance broker. He/she will shop for quotes from different insurance providers. The broker can also help answer questions about the type of coverage you should have. If nothing else, the insurance broker can help answer your questions and give you comparable health insurance quotes.

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This is an old question, but this is actually how I ended up resolving this issue - I worked with eHealthInsurance to find a good plan. – Bill Feb 4 at 21:17
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Do you have a family is one main question? That can change prices significantly.

I have a personal plan through a local health insurance provider and pay about $210 a month. So you might check out local plans.

You are always going to have a problem with health insurance being more expensive outside of a company providing it since they take the brunt of the cost.

You might also check out HSA accounts.

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No, I'm just looking for individual coverage. What do you mean by local plans? – Bill Dec 28 '10 at 19:12
I use Blue Cross and Blue Shield for my health insurance. I mean local as in something you seek out yourself in your state. Normally whatever town you are in there is someone that can help you get health insurance I found someone locally to help me get mine. Like Oleg posted though HSA might be a good option for you too. – percent20 Dec 28 '10 at 19:34
Ah I see. I spoke to some insurance brokers and all of them seemed very confused by the idea of a broker helping to find health insurance. – Bill Jan 1 '11 at 4:04
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If you are young and don't have any health problems consider catastrophic coverage with a high deductible. You will pay out of pocket for minor things but will be protected in case of an emergency.

Personally, I use a high-deductible HSA plan which has tax advantages. If you go this route I would suggest that you put the difference in premiums into into the HSA account until fully funded.

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I went through the same thing when I left my full time job. I ended up going with Neighborhood Health/ Commonwealth Care and its about $240/mo. Still a bit pricey, but not as bad as some of the traditional companies such as Harvard Pilgrim and Blue Cross. Hope this helps.

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Are those especially inexpensive because of Massachusetts's health reform law? – Bill Jan 1 '11 at 4:03
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I live in Canada and where I live, we get our health care for free. About 3 years ago, I had a pulmonary embolism that nearly killed me. While I was covered health care wise for the doctors and hospital stay, I wasn't prepared for the medication I needed to treat me conditions and complications ($220/wk), nor was I prepared for the 8 months off before I could return to the consulting work I was doing before.

This time around, I have stuffed away 8 months of emergency funding. This is on top of the money I need for the start up I'm on now. Built in to my top off are decision points; do I continue or exit, and part of that decision is whether I can afford to risk dipping into that emergency fund to continue my work.

So besides health care, which I realize you have to pay for in the US, make sure you have adequate funding for everything else ... loss of income, income potential and all of the drug costs assuming your health care plan doesn't cover them.

I'd also consider long term disability insurance. You're assuming you'll recover from whatever afflicts you, but what if it doesn't; then what?

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