No cash for health insurance

[GK Chickenhawk]

It's been a real bad year for my business and I find myself without the cash to cover my family's health insurance for the next quarter. Anybody that's been in this situation before have any advise? Should I "pay" for it with a credit card? Our debt is currently just barely manageable. I'm confident business will pick up and I'll be able to pay it off in the not-to-distant future, but I'd hate to find out I'm wrong. What's worse -- credit card debt or letting our health insurance lapse for a time? Is it harder to get insurance later if we let it lapse? We're all healthy but it only takes one accident to turn that around.

[Snowdancer]

If you've tried all other avenues such as selling off unnecessary items, reducing expenses and even trying to get your deductibles increased to reduce the size of the premium-personally I'd pay with a CC before I'd let it lapse.

You're absolutely correct-it only takes one accident or illness to push you over the financial edge if you're uninsured. Letting your insurance lapse is a really bad idea IMO because there's always the risk of an illness, medical condition or accident that then puts you in the pre-existing category when it's time to sign up for insurance again.


Good Luck, it's a tough choice but hopefully 2007 will be better for your business & you.

[dagwood]

Got yerself into a Catch-22 situation there for sure. Any family or friends you could borrow the $$$ from would sure beat putting it on a credit card IMO.

Not to slam you but for next year I'd suggest a bit more planning to cover things such as this.

Good luck and hope it all pans out for you.

[farmergirl]

Originally Posted by GK Chickenhawk

It's been a real bad year for my business and I find myself without the cash to cover my family's health insurance for the next quarter. Anybody that's been in this situation before have any advise? Should I "pay" for it with a credit card? Our debt is currently just barely manageable. I'm confident business will pick up and I'll be able to pay it off in the not-to-distant future, but I'd hate to find out I'm wrong. What's worse -- credit card debt or letting our health insurance lapse for a time? Is it harder to get insurance later if we let it lapse? We're all healthy but it only takes one accident to turn that around.

I would seek out a company that can sell you a policy with a very high deductible, like maybe $5000/ person or something. These policies are considered "catastrophe" policies, meaning if there's a major emergency healthwise you'll be covered and it won't completely wipe out your assets. I sell insurance, so I have an insider's view, but even before I sold insurance, I always, always maintained some kind of health policy.....probably because I grew up with a nurse for a mom!

[Lizza]

Personally, I'd pay it with a CC before I let it lapse. Getting individual coverage isn't always easy and they may not take you back, especially if you "dared" to actually use your insurance. Just pay it off as soon as you can. I actually think this is one of the nicer things about CC's, they are for an emergency and for me this would be an emergency.

That's just me though, I have 3 kids (one special needs), my husband is self employed and our only source of income, we could never afford to let our insurance go.

[Ana Bluebird]

We raised three children and never had health insurance, BUT it's a gamble that nothing big will happen AND health care costs are a LOT more than they used to be. Now we carry that catastropic health insurance with a very big deductible and try our best to stay healthy, even then our monthly insurance will be going up $130 a month!!! It's crazy!!

[GK Chickenhawk]

Thanks for the replies. I had forgotten about the "pre-existing" conditions problem. I was leaning this way to begin with but I'm convinced now that I should bite the bullet (again) and pull out the credit card.

And I'll be sure to plan more clients to hire my services next year. Wish I had thought of that before I got in this predicament.

[dagwood]

And I'll be sure to plan more clients to hire my services next year. Wish I had thought of that before I got in this predicament.

I don't know what type of business you are in thus my statement of:Not to slam you but for next year I'd suggest a bit more planning to cover things such as this.

Your response regarding that is not appreciated and I will no longer offer any suggestions in an effort to help you.

[GK Chickenhawk]

Originally Posted by dagwood

Your response regarding that is not appreciated and I will no longer offer any suggestions in an effort to help you.

Sorry, Dagwood, let's bury the hatchet before someone gets hurt. 'tis only a misunderstanding. I'll buy you one of those giant sandwiches you like once I'm out of debt.