How To Get Health Insurance for the Self-Employed

Being self-employed is a great way to make money and still have time for yourself. However, you'll find that your income is $0 when you're sick or hurt without the employer benefits. It's essential to plan and get the right health insurance coverage to protect yourself. This blog gives you the information you need to get the right insurance in all aspects.

Health insurance for the self-employed is not as straightforward as for those who work for an employer. However, it's also not true that you're entirely on your own when it comes to finding health coverage.

What Is Self-Employed Health Insurance?

Self-employed health insurance refers to private health insurance plans purchased by self-employed individuals who don't have access to a plan through an employer or spouse.

How Do Self-Employed People Get Health Insurance?

If you're self-employed, you know that not having health insurance can be a significant risk. If you get sick or hurt, medical bills can quickly add up and put a severe dent in your life savings. Fortunately, there are ways to get health insurance as a self-employed person. In this article, we'll look at some of the different options available to you.

1. Start with COBRA coverage

Are you currently enrolled in an employer-sponsored plan? If so, consider taking advantage of COBRA coverage. This federal law allows employees to keep their current coverage even if they lose their job or change jobs. You can also extend it for up to 18 months after leaving employment, which gives you time to find another solution. The downside is that these plans are expensive, costing more than $1,000 per month in premiums on average. But if you need time to find another option or find out your other options, this may be an excellent short-term solution.

2. Get covered through your spouse's health plan

If your spouse is employed, see if their employer offers coverage for dependents. Your spouse’s current employer might also provide COBRA coverage after leaving their job. This option extends the length of time you have access to your employer’s health plan by 36 months.

3. Buy a short-term health plan

Short-term coverage is a temporary health plan which provides healthcare coverage typically between 30 and 364 days, depending on your state regulations. Enrollment in short-term health insurance is year-round, so it's a great option if you need coverage right away or outside of open enrollment. Short-term coverage options aren't eligible for premium tax subsidies.

4. Check out freelancers' unions or professional associations

Unions and professional organizations often provide access to group plans for their members. There may be an additional cost associated with these plans, but it could be worth it: Group plans tend to have better benefits than those sold on the state exchanges.

5. Private Health Coverage (Obamacare)

If you buy private health insurance on the government marketplace (also known as Obamacare), you can get subsidies to help with costs based on your income level. This is only available through the government marketplace—it doesn't apply if you buy private coverage outside Obamacare. If you're eligible for Obamacare, it'll be the most affordable option for self-employed people who need to purchase insurance.

Here are some things to consider when shopping around for health insurance.

When shopping for health insurance, it's essential to do your homework. The number of choices can be overwhelming, but there are some straightforward guidelines for navigating the field. Here are some things to consider when shopping around for health insurance:

• Will you qualify for a subsidy?

  As a result of the Affordable Care Act, many people qualify for subsidies to help them purchase their health coverage. If you have a low income, you may be eligible for subsidies to help lower your costs for both premiums and out-of-pocket expenses. You can determine whether you qualify using this calculator from Kaiser Health News.

• What will the monthly premium be?

  This is the amount you pay per month to stay covered under your plan. Premiums are usually paid directly to the insurance company and range from $50 to several hundred dollars per month.

• How much is the deductible?

  The deductible is the amount of money you have to spend on medical expenses each year before your insurance company covers a portion of your costs. The higher your deductible, the lower your monthly premium will be, but it also means that you'll have to pay more out-of-pocket expenses when you need health care services. If you're buying insurance for the first time and aren't sure how much health care you'll need this year, consider going with a lower deductible so that you don't have to pay too much out-of-pocket if you get sick or injured.

• How much is the out-of-pocket maximum?

  This is the absolute most you'll pay in a year for medical care. This amount is usually a combination of copays, deductibles, coinsurance, and other expenses. So it's important to consider how much you'd be willing to pay out-of-pocket in a worst-case scenario. Be sure you're looking at the maximum annual amount and not the monthly cost, which will vary depending on your health and lifestyle.

• Does this plan cover what I need?

  If you're only buying insurance for yourself, it might be tempting to look at only catastrophic plans with low monthly premiums and high deductibles. However, if you want more comprehensive coverage or are purchasing insurance for your family, it's worth comparing all of your options. You might find that paying a slightly higher premium will save money in the long run if it gives you access to more affordable care when you need it most.

If you are self-employed, you have several options on where to get health insurance.

We hope we have shown you options for getting health insurance as a self-employed person. The key is to start your search early, keep your eyes open, and be prepared to take action when the time comes. It's not an easy task, but it might help you avoid some of the stress that comes with the necessary administrative tasks that are part of working without a company.

If you need affordable health insurance, there are options available to you.