NT - Shopping for health insurance

[Kea]

After doing a pre-screening with the insurance companies, it appears almost certain that they will all decline both of us. This is still really amazing to me. I always knew that getting insurance on our own would be the biggest hurdle in retirement, but I just figured it would be a cost issue. Never did I dream we were unhealthy enough to be denied outright.

We are fortunate in that we have the option of going with a more expensive group policy. It seems like for the size of my business, becoming a partnership with my husband makes more sense than my hiring him. Does anyone know how formal this needs to be? I'm sure I will need to get an EIN from the IRS. But would I then have to start filing a 1045, or can I use the husband / wife Schedule C method? Since we are in a community property state, I can split everything 50 / 50 on each Sch. C.

I'm hoping I can stick to the Sch C route since I have never filed a partnership return. I used to think it would be a good idea to learn all the business returns to expand my business. But with my husband retired and our plans for travel, I'm not really looking to expand anymore. I wasn't retiring since my clients won't let me. And now I CAN'T retire!!!

Thanks.

[mactoolsix]

Kea,

Thank god your test came back OK!!!

Let me relate our story to you. My wife & I retired about 3 years ago - I ran a small corportation for about 30 years, which paid all our medical. Retirement wake up - health insurance!! My wife has fought weight problems for years, so we ended up with separate policys. Her premium was thru the roof and climbing fast. One day she decided to sign up for boot camp, got a personal trainer & a nutritionist. A year later she has lost over 50 lbs, and dropped over $2,000 off her annual premiums. Best thing is she feels great, and for the first time in years can enjoy shopping for clothes. The best deal we found was thru a small business group Mega Health. We both have HSA policies - luckily we are in good condition with little need for doctors. Her drop in premiums almost pays for the physical training.

When you finally get everything in order, do yourself a favor and consider taking a professional apporach to weight control - you'll both appreciate life a whole lot more!

Best of luck.

Mike

[Kea]

Thanks for the tips. I've tried various weight loss programs and always gain back twice what I lose. I've been participating in an aerobics (land and water) program for several years. I may not be losing much, but I am healthier.

I'll look into the Mega Health group, too.

And welcome to the board!

[Lion EA]

This was on today's e-newsletter from NAEA:

Members Receive 50% Discount

Become a Provider of TASC's AgriPlan or BizPlan and generate additional revenue, diversify services, and retain and expand your clientele. Based on Section 105 of the Internal Revenue Code, a self-employed individual who employs a spouse in the business may be eligible to deduct 100% of their family health insurance premiums and out-of-pocket medical, vision and dental expenses not covered by insurance. For more information call 1-888-595-2261, e-mail [email protected], or visit website.

[Kea]

Looks interesting. You can take advantage of what is essentially a Section 125 plan - except for self-employed. I remember something similar offered by NASE back in the 90s when I was 1st self employed.

[joanmcq]

They administer the Sec 125 plan. I have an MSA with them thru my job. Talked a bit with them at the CSTC symposium. But my SE clients who need insurance aren't married, and those that are, have health insurance through the spouse's employment. Doesn't work if you are single.