| Are you plagued by unanswered health insurance | | | | should contact your State Department of Insurance. |
| questions? Do you find yourself losing sleep or | | | | My employer group plan covered my pre-existing |
| spending way too much time mulling over questions | | | | conditions. If I leave my employment, can I still have my |
| about health care and insurance coverage? In this | | | | pre-existing conditions covered if I become |
| article I put to rest 5 such key questions. | | | | self-employed? |
| Are health insurance premiums tax deductible? | | | | This is tough question. Basically, the answer is that as |
| Yes. The monthly premiums you pay can be taken as | | | | long as you have COBRA coverage, you will remain |
| a tax deduction on your Federal income taxes if you | | | | covered for pre-existing conditions. However, COBRA |
| itemize your deductions. Your other health expenses, | | | | coverage lasts for 18 months, and coverage for |
| such as co-payments and deductibles for medication, | | | | pre-existing conditions may not necessarily continue |
| doctor, and hospital care can also be deducted. One | | | | once you leave that for a private policy available |
| question you must consider, however, is whether your | | | | through the private insurance market. However, and |
| itemized deductions are greater than the personal | | | | this is important, some states do allow you to move |
| deductions built into your personal taxes filed using one | | | | from a COBRA policy to a private policy without losing |
| of the 1040 forms. I recall one year where I had | | | | coverage for pre-existing conditions. So, it is essential |
| around $20,000 in deductions for health insurance | | | | that you understand how the insurance laws governing |
| premiums, medication, and other related health costs. | | | | your state work in this regard. |
| Needless to say, that year I itemized my deductions. | | | | Is there any health insurance for the very poor? |
| Can the self-employed deduct the cost of their health | | | | This is a difficult position to be in. The answer to this |
| insurance premiums? | | | | question will vary depending on your state of |
| Again, yes. In a word, tax laws have been amended to | | | | residence. Some states provide health care benefits |
| allow the self-employed to itemize this deduction on | | | | through the state Medicaid agency. Medicaid is a joint |
| Federal tax returns. However, this deduction cannot be | | | | Federal and State program and all benefits are |
| used to show a loss for your business. Incidentally, big | | | | managed by the state in which you reside. Because |
| business has been authorized for some time, now, to | | | | this is state managed, the benefits available vary from |
| count your premiums as a business expense, so this is | | | | state to state. Medicaid is not health insurance, |
| at least a small victory for small business. | | | | however. It is assistance and as such is a sort of |
| I live in a "guaranteed issue" state. What does that | | | | subsidized health care paid for by Federal and state |
| mean, and how does that help? | | | | taxes. If you have children but your income is just high |
| Guaranteed issue means that you have a right to | | | | enough to disqualify you for Medicaid benefits, your |
| state, guaranteed health insurance. In some states, | | | | children might still be eligible for health benefits under |
| such as Iowa, this is called mandatory state health | | | | the State Children's Health Insurance Program, or |
| insurance. This means that the laws in your state of | | | | SCHIP plan. Contact your state Medicaid agency and |
| residence require the insurers to sell you a policy. Not | | | | State Department of Insurance for more information |
| all states have guaranteed issue rights, however, and | | | | about the laws in your state. |
| to find out if your state has mandatory laws, you | | | | |