Health Insurance For Self Employed

Self employment can easily be one of the most rewarding things that you can do. In fact, many people dream about firing their boss, ditching their commute and going into business for themselves. With the high cost of health care, however, the thought that they might lose their health coverage is one of the major things that keep people from quitting their jobs. While it’s true that paying for your own health insurance can be a little more expensive, there are a few things you can do to find the most affordable and beneficial health insurance for self employed people.

Do your research

Doing some research before deciding on a plan is the most important thing that you can do when looking for health insurance for self employed people.  There are many things that will factor into the cost of your new health insurance such as the state you live in, your age, your dependants and any pre-existing conditions that you may have.

 Guaranteed issue states

Some states will have what it known as a guaranteed issue law.  This means that health insurance companies can’t deny you coverage because of a pre-existing condition.  It’s important to find out if you live in one of these areas because a pre-existing condition can easily increase the costs of health insurance for self employed people.

 Premiums and deductables

One significant difference between employer based insurance and health insurance for self employed people is the cost of the premium.  Depending on the plan that you choose, you may be able to pay a higher deductable to lower the cost of your premium.  This means that you will pay more when you do receive medical care but you won’t pay as much per month.

Finding the best health insurance for self employed people is a matter of finding the most affordable plan that still covers your needs.  Some states will allow you to change plans without having your costs increased because of a pre-existing condition while certain plans may let you pay a higher deductable to reduce your premium.  The most important thing to remember when looking for health insurance for self employed people is that the cost of your health insurance can be written off as an expense on your taxes.  Doing a little research, choosing the best plan and writing off your costs is the key to becoming self employed and not losing your health insurance coverage.

One of the biggest problems self employed people face is that it can often be hard to find affordable health coverage.  Many people will find that their health insurance costs have multiplied since leaving their previous job.  This is because most employers will cover the majority of the insurance fees.  While it may seem impossible to find adequate coverage, there are a few different options when it comes to health insurance for self employed people.  Understanding the different options is the key to avoiding a lapse in coverage.

 HMO

HMO stands for Health Maintenance Organization and will offer a range of different health plans.  HMOs are generally quite affordable but it’s important to understand the limitations placed on them.  Most HMOs will have a network of medical professionals that are covered by the health plan and will require that the recipient chooses a PCP, or Primary Care Physician.  This may mean that the person being covered by the HMO will have to change their health care providers.

POS

POS stands for Point of Service plans.  A POS health plan is a good option for health insurance for self employed people that wish to choose their own health care providers.  A POS will generally require the recipient to choose a primary care physician but they will also be covered by their health insurance when visiting health care providers outside of their plan’s network.

 HSA

An HSA is a Health Savings Account.  An HSA will offer catastrophic coverage to its recipients while offering a tax free savings account which allows a small business owner to deposit money into a tax free savings account which can then be used to pay health care fees.  The benefit of an HSA is that it offers a low monthly premium.  The downside is that, when it comes to health insurance for self employed people, a low premium often means a high deductable.

Finding adequate health coverage is one of the biggest concerns for self employed people.  Finding health insurance for self employed people can be tricky but it’s simply a matter of understanding the options available and choosing the best plan.  By doing a little research and choosing the most appropriate options, finding health insurance for self employed people is quite easy.