Tips on Buying Health Insurance Jane Bryant Quinn, NEWSWEEK 2006-06-06

TIPS ON BUYING INDIVIDUAL COVERAGE Shrink your health-insurance premiums by buying high-deductible catastrophic coverage. If you're self-employed or have no employee plan, this may be the only policy you can afford. You're covered for serious illnesses but have to pay lesser bills yourself. The higher the upfront deductible (usually anywhere from $2,000 to $10,000), the lower the premium you pay. Shop the Web. Many state Web sites list health-insurance companies and compare their premium costs. You can get sample quotes at ehealth insurance.com. Look at a Health Savings Account (HSA) if you're self-employed. It combines catastrophic health insurance with a tax-favored savings plan. You choose a sum that you're willing to pay out of pocket for medical expenses. The insurer pays most of the bills over that amount. You meet your own costs by making tax-deductible contributions to the HSA and using that money, tax-free, for medical bills. Any unspent money stays in your HSA for future use. HSAs work best if (1) you're rarely sick and can build up big reserves, or (2) you can afford to pay medical bills from your current income and will treat the HSA as if it were a tax-favored retirement account. Turn to an insurance agent if you've had poor health. An insurance company may reject you, or charge you more, for reasons that astound you—say, seasonal allergies, an old knee injury or current treatment for depression (so much for "Prozac Nation"). You need an insurance agent who specializes in "impaired risks."