May 17, 2005 - Health Insurance Woes

[Note: this is a regurgitation of the post about health insurance over at the Emerald Bay Photo blog.]

Today, I'd like to address an issue that a lot of freelance photographers (and other self-employed people) face: The task of buying individual health insurance.

Like so many of my peers, I want health insurance, but cannot afford the premiums even my husband's employer wants from me (something like 250 bucks a month). So I've been on the lookout for good, affordable health insurance by a reputable company for a while now.

A few months back, a fellow freelancer warmly recommended Pacific Source, an Oregon-based company with terrific rates and a very high consumer satisfaction rating. I instantly downloaded their lenghty application, filled it out and sent it in. 3 weeks later, I get a letter of rejection.

Now, I'm one of those blessedly healthy individual who doesn't see the point of going to the doc unless something seriously traumatic happens (like I'm suddendly missing a limb, or the like - for which I *do* would like to be insured though). But apparently the fact that I was honest and told Pacific about a rotator cuff injury I sustained (and healed out) last winter while shoveling snow, was enough for them to turn me down. I was bummed.

Suddenly though, my mailbox filled with ads for health insurance for the self-employed. I didn't bother to take a closer look, until today, when a lady named Sally Hite called me and wanted to set up a meeting to "customize a quote" for me. I indulged her for a bit, telling her about my Pacific Source experience (she didn't seem too concerned with my rotator cuff problem), trying to glean as much info as possible from her through her hard sales pitch about the company she represented . She told me she worked with/for Mega Life & Health Insurance, but upon requesting she'd send me some information about the company prior to the meeting, she told me she'd rather not send anything because "most consumers don't understand the information anyway, and I'd rather not get you confused". Aha. I'm an idiot. News to me. But hey. She fussed even when I asked for a website URL.

So while still on the phone, I pulled up the company's website - where I found no information of any use, except the impression that for a national insurance company, they sure didn't splurge on web design costs. I finally hung up, and smelling the rotting fish from a mile away, went looking online for more information on the company.

Of course what I found was less than encouraging: The Texas Dept. of Insurance had a lengthy profile of the company, complete with a history of fines Mega had incurred in the past years for "market conduct". Selfemployedweb.com had an interesting article on deceptive practices some health insurance companies employed to get people to sign up - with Mega Life and its parent company, UICI, highlighted as an example for just such practices.

And then there was this interesting note in the article, saying how insurance companies employed associations and other similar groups to help them sell insurance. That's when I remembered that Sally had mentioned that I would need to sign up with the NASE (National Association for the Self-Employed) to be eligible for her insurance. And looky here - the NASE wants $96 just for their basic membership, with "benefits" that seem only a thinly-veiled list of companies that just love to market to the self-employed.

Add to that this fascinating thread in the Google Answers forum - and I swiftly cancelled my appointment with Sally. This little gem from a PR Newswire report in particular did it for me: Since late 2002, UICI has been beset by lawsuits alleging the company sold insurance policies through business associations without properly revealing close links to those organizations. The associations, including the National Association for the Self-Employed and the Alliance for Affordable Services, were managed by executives with direct ties to UICI.

So what's the moral of this rather lengthy post? Fellow freelancers out there beware - there are insurance companies on the loose with less than stellar morals, trying to take advantage of you. If you can, instead sign up with the AMSP, and get insurance through them. Of course the hang-up here is that their conditions specify you need "three or more consecutive years of substantial publication experience" and you need two ASMP members to sponsor your application...

I'm not quite there yet, so I'm still looking for insurance. If any alert readers come up with any bright ideas, email me or post in the comments over at the Emerald Bay post.