v
Health insurance coverage for real estate agents and families, does not always present an easy solution. For the most part, agents need to be creative and find alternatives to help them get a policy that is suitable to meet their needs but also affordable. Take new Virginia agent Chris Cloud, for example. He describes his reaction to shopping for health insurance as “sticker shock.” “Coverage for just myself was running $640 a month!” But Cloud came up with a creative solution: Find a side job that provides health insurance for him and his wife.
Cloud is a bus driver in the morning and afternoon. In between shifts, he sells real estate. The part-time bus driver position provides full-time benefits. “So not only do I get excellent health insurance with dental and vision, but my wife is included on the policy for almost nothing!” The cost for the two of them is about $400 a month, he says. Although this solution has provided him coverage, he is spending more time away from his family to gain the protection needed. Not to mention that the $400 a month premium is more than likely a huge chunk of the wages earned with his part time employer.
The current healthcare options available to an agent are coverage through their spouse’s employer, Affordable Care Act (ACA), some obtain coverage by buying into their brokerage, such as NAR (National Associations Realtors), and the increasing popularity of the faith-based plans.
Typically, employer coverage through their spouse will give them the most comprehensive coverage available in todays market; however, this coverage usually comes with a hefty size monthly premium. The big premium is due to the employer contributing very little, if any for the spouses and dependents portion. Although the deductible and max out of pockets are typically lower than ACA plans, they still may need to be offset by adding supplemental accidental protection which can be purchased through a licensed agent not affiliated with the employer.
As for the Affordable Care Act, the increase in health insurance rates and limited tax credits due to earning a higher annual income, force agents to delay obtaining coverage to control costs to themselves. These plans not only come with high monthly premiums but high deductibles and max out pocket expenses as well. The good news here is if the agent can afford the higher premium, there are ways to offset the high deductible and max out of pockets. This can be obtained by adding a supplemental accidental medical expense and critical illness benefit. The benefit amount will determine the additional cost.
The majority of NAR members, 46 percent, pay out-of-pocket for their health insurance, according to the organization’s 2017 Member Profile. NAR continues to promote health care reforms for the self-employed and small employers. Among its legislative proposals is to allow “bona fide trade associations” to offer association health plans (AHPs) to its members. For an AHP plan to work as expected, it will need healthy people to buy into the coverage to offset the cost and risk pool of the unhealthy. Basically, just like other insurance plans.
For the reasons above, the faith-based plans have become increasingly popular amongst real estate agents. Faith-based plans help agents and families with medical expenses through innovative cost sharing models without the costs and complexities of “one size fits all” traditional major medical. These plans are great for primarily healthy people focused on preventive and primary care but also provide coverage in a catastrophic event. The member will have a member shared responsibility amount (MSRA) that must be paid before plan starts to share cost and once that amount is met, the plan covers medical cost at 100%. Think of this like a deductible or max out of pocket you would have with traditional major medical. The MSRA is applicable towards hospitalization and inpatient or outpatient surgical procedures. The MSRA does not apply to preventive care, urgent care or primary care visits. Those services are covered at 100% or typically have a $25.00-$50.00 consult fee. There is generally a waiting period on pre- existing conditions of 12 to 24 months towards hospitalization and surgical coverage and that is why it is geared towards healthier individuals. Due to the waiting period, they can reduce monthly premiums and offer suitable coverage to an agent and families.
Well real estate agents, I hope this finds you in good health, gives you more insight to your options and I have been of service to you. I will be awaiting to hear from you so we can find your solution!
. https://www.realestateexpress.com/career-hub/blog/health-insurance-for-real-estate-agents/
