Health insurance what are you doing about it?

4 Replies

So I have made it this far and life has thrown a curve ball.  I figured my wife could carry our families health insurance while we venture off into real estate.  Well life happened and now it is just me and the kids, If I leave my 40 hrs a week I will need to somehow still provide insurance for me and the kids.  At first glance this looks extremely costly, what are you doing to provide health insurance if you are in a similar situation...

Hi Chris - The way I see it there are a few options when one loses access to employer-sponsered health insurance.

1) Obamacare - There are significant federal tax credits available for those earning less than $100k.  Perhaps the advantageous tax deductions of real estate enable you to show a low enough income to qualify for an attractive tax credit and, thus, low net premium cost.  Healthcare.gov is your resource to price this out.  If your income is low enough, you may even qualify for Medicaid, and your kids may qualify for CHIP.

2) There are healthcare sharing ministries, such as Liberty Healthshare, that you may want to research if your earn significantly more than $100k.  These organizations pool like-minded individuals, usually on a religious basis, to share each others' medical costs.  The net effect is that they operate much like regular insurance, but usually at much lower costs.  There are some downsides to these organizations, so I would suggest doing some in-depth research.

3) Self-Insure - This option probably only makes sense if you are both healthy and wealthy enough to carry the risk and absorb the costs.  

I too would be curious to know what others think are the best insurance options for the full time real estate investor.

I, too, am curious what others who don’t have a W2 job would do with health insurance coverage. I enrolled in the health sharing ministry (CHM) for 2 months last year and 1 month w/ Marketplace while working on activating my RE agent. I decided to get back at corporate world soon afterwards. Obamacare was too expensive for the whole family coverage (mind you, my W2 job didn’t qualify me for a discount rate) and although CHM was cheaper it only covers major medical (without guarantee either), and no coverage for pharmacy, annual physical or instacare clinic. With a disable husband and young teenager in the family, it would be too risky to rely on health sharing ministry. Bottom line, I needed health benefits coverage for the family with good coverage and reasonable cost, and the only way to get to that is by going back to 40hr office job. You only need one spouse to cover for the whole family while the other work as an entrepreneur. One big accident could wipe your entire wealth if you don’t have health insurance. Why risk it?

@Ingrid B. thanks for the input, I had planned for the whole spouse coverage entrepreneur route till life threw a curve at me and now I have to do it myself and 2 young kids.  I won't make the move unless I can guarantee we are covered, I really hope life plays nice as I have worked hard to get to this point.

@Mike Roy Thank you! I will have to do some SERIOUS research now. We are all healthy just not wealthy so it looks like option one at this point is my go to BUT I will be looking at options. I make $50K at my 7-4 daily and about $30k from my (4) rentals no debt other than my primary, I know I have it in me at 39 to hustle some work on a few more rentals I just need to figure out this whole BRRR, flipping or wholesale thing. I was hoping to take up shop and learn as a realtor but I guess if I am being 1099'd the insurance thing could still be an issue.

Thanks for sharing.

"I was hoping to take up shop and learn as a realtor but I guess if I am being 1099'd the insurance thing could still be an issue."

Not sure. I think that members of NAR and agents for some of the large brokerages (ReMax, Keller Williams, etc.) may have access do decent pricing through their group plans. Not totally sure, but I would start asking some experienced agents about how they handle health insurance.