Life & Health Insurance/Health Insurance

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Question
My husband and I own a small business, which has been doing quite well until recently. Now sales are unexpectedly down and we are struggling to the point where my husband just canceled our health insurance policy, which was being paid for by the business. He says he does not know when/if he'll be able to get another one. We are still able to pay ourselves but we have a mortgage, daycare expenses for two children and a lot of other big bills, so there is very little room in our budget for another policy and we don't qualify for Healthy Families or any of the state programs. But business is bad enough that we may be looking at major pay cuts and possibly bankruptcy unless things improve.

Now my question: I can get a temporary policy that covers myself and my kids for $250 a month, but this pays for nothing until we reach a $7500 deductible. We still have about $2200 in an HSA. Is it worth buying one of these policies "just in case?" We're going to be paying all our expenses out of pocket anyway, with or without the policy, so it would really be there in the event of something catastrophic. I worry about my four kids being uninsured, but we can't afford to spend more than this with our expenses being what they are right now. Is it better to just go uninsured since we may be looking at bankruptcy anyway?

Answer
Hello Becki:

Short term plans are usually very good, allowing you to purchase coverage for a reasonable price for up to 12 months, depending on the state and/or insurer. Once you have found one to your liking, send me a link to it and I'll check it out. Include the state that you reside in please.
On 01/01/2014 the PPACA, (Obamacare,) begins, and financial assistance may be available to you to help pay your health insurance premium at that time. Here is a link to a calculator that will give you an idea of how much health insurance may cost you in 2014, and any financial assistance amount you qualify for based on gross income, http://healthreform.kff.org/subsidycalculator.aspx.
For now though, buying a short term policy is an excellent idea in my opinion.

Thank you.  

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Michael Higgins

Expertise

All questions pertaining to health insurance, whether group, individual/family, student, child-only, COBRA, HIPAA, Portability, dental. No expert knowledge in areas such as life insurance, disability, workman's compensation, auto, etc.

Experience

34 years as owner of health insurance agency, primarily dealing with Blue Cross Blue Shield of Arizona.

Education/Credentials
College, Business Administration.

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