Exploring Health Insurance When You're Self-Employed
It can be tricky for self-employed professionals to evaluate their insurance options. For example, just knowing where and how to get started can be confusing. Also, some people wonder whether they need insurance in the first place. This post breaks down information on options, cost considerations, and if you truly need insurance.
What Are Good Self-Employed Options for Health Insurance?
Brokers and online comparison tools make it simpler for consumers to compare their health insurance choices. While understanding factors such as co-pays, deductibles, and premiums is a bit easier, the process remains confusing for many people.
Insurance brokers offer a personal touch and do much of the work for you. They can clarify the various factors at play so the process becomes less stressful. Here is a look at brokers and other options that self-employed people have for getting health insurance.
Health Insurance Brokers
Many self-employed professionals purchase their plans through brokers. Brokers work with you to understand your particular needs and wants, and they find the best insurance plan to meet these criteria. They can help whether you are seeking coverage for just yourself, your family, or for
your employees.
Brokers have access to many health plans from top providers and can easily compare them. Through a broker, you can talk with real people and get regular health insurance and/or plans for dental, vision, life, and Medicare. You can also explore various options for savings. Brokers do
much of the legwork for you, taking the hassle out of health insurance shopping.
Insurance Providers
You can also purchase insurance directly through an insurance company or provider. You can do so online, on the phone, or even in person. Like with brokers, you may find rates or special deals you might not on the marketplace.
State or Federal Marketplaces
The health insurance marketplace lets you compare many plans in one place. Some states use their own marketplace, while others use the federal marketplace. As a result, the look and ease of your shopping experience can vary depending on where you live.
Many people buy their insurance during yearly enrollment periods, typically from fall into early winter. Qualifying life events can trigger special enrollment outside of these time frames, though. Marriage, divorce, income changes, job changes, moves, and gaining a dependent are a few examples. You might have up to 60 days after the event to apply for insurance.
Marketplace plans (as well as the private plans you purchase through brokers and insurance providers) offer these 10 critical benefits per the Affordable Care Act: preventive care, pediatric care, prescription drugs, maternity care, hospitalization, emergency services, mental health, outpatient services, lab services, and rehab services and devices. It is illegal to deny you coverage based on pre-existing conditions.
Marketplace plans are bronze, silver, gold, and platinum. Platinum plans have the highest premiums but cover the largest percentage of medical expenses. Bronze plans have lower premiums and lower coverage levels.
State Health Plans (Medicaid)
Depending on your income, you might qualify for a state-managed health care plan. For example, California’s is Medi-Cal. You should be able to apply through your state marketplace and other methods.
Do You Need Insurance as a Self-Employed Person?
You are the person most familiar with your life and situation, but it is a good idea to get the best plan
you can afford. Medical bills can get expensive fast, and it is impossible to predict health emergencies. Health insurance makes costs manageable and eases stress in the big picture for consultants, freelancers, independent contractors, entrepreneurs, and other self-employed people.
What Are Health Insurance Cost Considerations for Self-Employed People?
Self-employed insurance costs typically include deductibles, copays, and out-of-pocket maximums. Deductibles are how much money you must pay before your plan kicks in to cover you. Copays are fees you pay for services such as a doctor’s appointment. Out-of-pocket maximums are the most you have to pay in a year for covered care.
Fortunately, you can deduct your premiums on your yearly tax return. Many self-employed people get refunds or lowered tax bills this way. It is also possible to get write-offs in certain circumstances.
Contact a Health Insurance Broker Today
Health insurance can be confusing for self-employed professionals. To simplify the process, contact us today at Sackett & Associates Insurance Services or
request a quote.
