Like many business owners, you have been wondering whether or not you need to sign up for Medicare. This article will break down precisely what Medicare is and how it works.
So, keep reading to learn more!
Temporary Health Insurance Options
My husband accepted a new job in another area of the country, allowing us to relocate to a place that we prefer from one we didn’t care for as much. His salary has increased significantly, and he feels the job will be better for his mental health and his career. The only difficulty is that he will not qualify for health insurance during the first two months he’s employed. We’ve searched for temporary health insurance options, but there aren’t many good options.
Why Not Go Without Health Insurance?
We could always take a chance and go without health insurance, but we’re not young; we’re firmly in middle age, so we visit the doctor more than we used to. Plus, young, middle-aged, or old, on any given day, we could be involved in a catastrophic health event such as having a car accident or being diagnosed with cancer.
My husband and I aren’t gamblers, so we don’t feel comfortable foregoing all health insurance options.
Utilize the Spouse’s Insurance
Another option for many couples is to utilize their spouse’s insurance during this time. However, I am a freelance writer, so my only insurance coverage is through my husband’s employer. This option is not available to us.
COBRA Is an Expensive Option
When my husband leaves his current employer, he can opt for COBRA insurance. COBRA allows us to retain our current insurance for the two months we’re without health insurance with the new employer. However, rather than paying our portion of the health insurance premium, we also pay the employer’s portion. Therefore, we would need to pay $1,659 a month for COBRA insurance or $3,318 for the two months we’re without insurance. Ouch!
Insurance Through the Affordable Care Act?
I looked into the Affordable Care Act, but getting insurance here is not much more affordable for us than COBRA. Insurance here is based on your income, and my husband’s income is good, so theoretically, we can afford to pay more.
We would need to pay nearly $800 a month for health insurance, and we would also have a high deductible. The insurance would only cover us for catastrophic events until after we meet the high deductible.
Insurance Through Our Car and Home Insurer?
We also looked to see if our car and home insurer offers medical insurance. The company does, but not in the state in which we’re moving.
What We Decided
Ultimately, we looked at our temporary health insurance options and decided to take advantage of a stipulation in COBRA. You have up to 60 days after leaving your employer to apply for COBRA. When you do, you pay for the time since you left your employer and are retroactively covered.
So, if the next two months don’t involve any health issues, we can save ourselves $3,300 in COBRA premiums. If we do need insurance coverage, we will pay for COBRA. This is a bit like gambling, but a safer way to help us stay protected while potentially not costing us thousands of dollars.
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Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.
Our Experience Bypassing Auto Insurance
A few years ago, my husband and I decided to travel with our then three-year-old to visit my alma mater. We were driving around, seeing the sites when we were rear-ended. The driver, a man in his thirties like us, was apologetic and gave us his license, name, and number. And then he said that he wanted to pay for the damages himself, bypassing auto insurance.
Our Experience Bypassing Auto Insurance
I don’t know the details of why this man wanted to bypass auto insurance. I assumed he already had some claims on his insurance and didn’t want to add more. Not only would that raise the price of his insurance, but if he had several claims on his insurance in a short time, his insurance company might drop his coverage.
My husband and I lived five hours from my alma mater, so all communication was done via phone.
Getting an Estimate
I went to a local repair shop and got an estimate for the damage. The total came to $1,462. I got a copy of the receipt and sent it to the man who hit us.
He didn’t ask for a second opinion. He accepted the quote and promptly sent me a check. However, when I received the payment, he had transversed his numbers and sent us $1,642, $180 more than the estimate.
I notified him about the overpayment, but he didn’t want to hassle with anything. He told me to keep the extra money. At this point, I think he just wanted to get the repair done.
We Were Lucky
Looking back, the man who rear-ended us was lucky because my husband and I are honest. I knew that the man was trusting us, so I went to a shop we had used for repairs before and that I trusted. I didn’t try to milk the man for more money.
We were lucky because the man who hit us was motivated to keep this accident off his insurance record and get the process over and done with. He paid us promptly.
Would I Do It Again?
Would I bypass auto insurance again? It depends. I recognize that I could have had an issue with the man not paying, but I didn’t. He was honest.
Still, when you bypass auto insurance, you take a risk. If I just had a minor fender bender, I may take that risk again. However, I would write down the other driver’s auto insurance company and policy number, so I would have recourse if he failed to pay.
If the accident was more than a fender bender, no, I would not bypass auto insurance. The repair cost would likely be higher than a thousand dollars, and I wouldn’t want to risk losing that much money. Also, a more significant accident would require calling the police. Then an insurance claim would need to be filed.
Have you ever bypassed auto insurance? If so, what was your experience?
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Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.