Health Insurance for the Self-Employed

Being self-employed can bring plenty of benefits with it. Unfortunately it can also shortchange you when it comes to health insurance. People who are self-employed do not qualify for a group insurance plan through their employers because they work for themselves. These individuals need to find health insurance on their own.

Being self-employed can bring plenty of benefits with it. Unfortunately it can also shortchange you when it comes to health insurance. People who are self-employed do not qualify for a group insurance plan through their employers because they work for themselves. These individuals need to find health insurance on their own.

Finding self-employed health insurance is not as difficult as you may think. The real challenge in it all is finding self-employed health insurance that is affordable for you and won’t break your bank account. This is even more of an issue if you are a self-employed person raising a family as opposed to if you are a single individual.

One of the best ways to find health insurance if you work for yourself is to find an insurance agent that you trust and you feel comfortable working with. It is essential that you do your own brand of research before you commit to any particular insurance agent. Be aware that an insurance agent that is reputable and worth his or her time will permit you to interview him or her before you make any final decisions. The agent will also allow you to compare the insurance offers and coverage plans that he or she puts on the table for you in terms of self-employed insurance options.

Before you commit to any agent or sign papers or pay any money to the person you should check with the Insurance Commissioner’s office in your state. This office will work as a fact checking service for you. You can search through past records to find out if there have ever been any complaints filed against the agent.

Health savings accounts are an excellent way to save money if you work for yourself. If you already have an individual health insurance policy through an insurance provider then this type of account can help to further your interests in saving money for your health care needs.

When looking for self-employed health insurance you need to select a health insurance option that is as reasonable and as cost effective as can be. In this case you would pay a higher deductible but then you would be able to offset the costs of the plan with a health savings account (HSA) which is tax-free.

A HSA is a smart option for self-employed individuals. You can deposit pre-tax money into your account and then from there you can use the account to pay for the medical costs and services that your insurance coverage will not pay for. When you do this you can avoid having to pay higher taxes on the money in the health savings account. You will also benefit from having money set aside that you may need later on when something comes up with your health.  Keep in mind however that the deductibles are high in this case which is why you should implement a good emergency plan before you start a health savings account.

If you have not become self-employed yet but plan to in the future and you currently have health insurance through your employer then thanks to COBRA you may be able to continue the coverage for a while. COBRA stands for Consolidated Omnibus Budget Reconciliation Act and it got its start in 1985. Although this can be a less than affordable option for some soon-to-be self-employed workers, COBRA can make it possible for your group health insurance benefits to be extended for up to a year and a half after you leave your job for your new self-employed prospects.