Get Health Insurance When Freelancing: Tips

If you work for an employer with more than 50 full-time employees, then the Affordable Care Act requires that employer to offer you healthcare. But if you’re a freelancer, it’s up to you to find and pay for health insurance. 

Health insurance is expensive without an employer covering part of your costs, so it’s easy to understand why many people go uninsured when they freelance. 

Still, don’t take the risk the Affordable Care Act is still in place, which means that choosing not to get health insurance comes with steep penalties at tax time.

In this article, we’ll provide 21 tips for getting affordable healthcare as a freelancer. We’ll also give some advice about what kinds of coverage are important, including dental and vision care plans for adults as well as coverage for dependents like children or aging parents. 

So settle in; by the end of this article, you’ll be ready to shop around and pick out a plan that will protect your finances while giving you peace of mind!

Takeaways
1. Prioritize your health: Make obtaining health insurance a priority as a freelancer to protect yourself financially and ensure access to necessary healthcare services.
2. Explore marketplace options: Research health insurance plans available through the health insurance marketplace to find options that suit your needs and budget.
3. Consider group plans: Look into group health insurance plans offered by professional associations or unions that freelancers can join to access more affordable coverage.
4. Evaluate health sharing ministries: Explore health sharing ministries or cooperatives as alternatives to traditional health insurance, which may provide cost-effective options for freelancers.
5. Understand COBRA limitations: Recognize that COBRA coverage may not be available or applicable to freelancers since they typically do not have employer-sponsored health insurance plans.
6. Seek specialized options: Consider specialized health insurance options designed specifically for freelancers, which may offer tailored coverage and benefits.
7. Consult with insurance professionals: If you’re unsure about the best health insurance options for your freelancing career, consult with insurance professionals who can provide guidance and advice.
8. Review and compare plans: Carefully review and compare different health insurance plans, taking into account factors such as premiums, deductibles, coverage limits, and network providers.
9. Assess your eligibility for subsidies: Determine if you qualify for government subsidies that can help reduce the cost of health insurance premiums based on your income and other eligibility criteria.
10. Stay informed about changes: Stay updated on any changes to health insurance regulations and policies to ensure you make informed decisions and take advantage of available options.

It Can Be Incredibly Expensive, Though

It can be incredibly expensive, though. Health insurance premiums have skyrocketed since the Affordable Care Act was passed in 2010, and now many Americans are struggling to provide for themselves and their families. 

It can cost you hundreds of dollars each month just to have coverage and that’s assuming your employer offers it at a reasonable price!

If you’re freelancing full-time or otherwise making your own way in the world, this is something that needs to be taken care of right away. You’ll need health insurance if you want to avoid going broke or being forced into bankruptcy by an unexpected medical emergency.

As a freelancer, taking care of your health should be a top priority. Our comprehensive guide on Freelancer Health FAQs provides valuable insights and answers to common health-related questions freelancers may have. From managing stress to finding work-life balance, this guide covers it all, ensuring you can thrive in your freelance career while prioritizing your well-being.

1. Consider Short-Term Coverage

If you’re in between jobs and don’t have a health insurance plan through an employer, short-term coverage is a good option for when you’re between jobs. It doesn’t require a medical exam and can be used to bridge the gap between health care plans.

If you have an illness or injury that makes it difficult to obtain traditional health insurance, short-term coverage may be your best bet. These plans are available even with pre-existing conditions and have no waiting period for coverage.

2. Consider A Health Savings Account (HSA)

Health Savings Accounts (HSAs) are a type of tax-advantaged savings account. When you contribute to an HSA, you can deduct the amount you contribute from your taxes. If you use the funds in your HSA to pay for qualified medical expenses, it’s also tax-free. 

The money in your HSA is yours not your employer’s and remains there until you turn 65 or even later if used for a purpose other than health care costs (such as paying for long-term care).

With an HDHP, not only can you put money into an HSA but many plans will reimburse some or all of your contributions to that account upfront each year. That makes it even easier to set aside money for future use!

3. Check With Your Spouse’s Employer

If you’re married, it’s worth checking to see if your spouse has access to group health insurance through their employer. Some employers offer group health insurance only to spouses, not to employees themselves. 

However, some employers allow their employees to purchase coverage for their spouses and dependents on the employee’s plan.

If your spouse does work for an employer that offers group healthcare benefits.

Contact the human resources department for more information about joining up and how much it might cost you each month (you can also ask coworkers if they know of any companies that offer group health insurance).

Freelancing offers flexibility, but it can also pose challenges to maintaining a healthy lifestyle. If you’re looking for effective strategies to stay healthy while freelancing, our article on How to Stay Healthy When Freelancing is a must-read. Discover practical tips on incorporating physical activity, managing sedentary work, and maintaining mental well-being, enabling you to lead a balanced and healthy freelance life.

4. Look Into Association Plans (That Is, Groups Of Individuals Organized Around A Common Nonwork-Related Interest Or Activity)

Association plans are an increasingly popular option for freelancers. These are not commercial plans, but rather, they’re organized around a common nonwork-related interest or activity. 

For example, many writers and artists belong to organizations like the Writer’s Guild of America or the American Society of Composers, Authors, and Publishers (ASCAP) that offer health insurance to their members.

The main advantage of association plans is that they’re not subject to the same regulations as commercial insurance companies. 

This means that prices tend to be lower than those in the market for individual policies from commercial carriers and you can choose from more options when it comes to deductibles and benefits packages although this does come with some drawbacks:

Association plans aren’t regulated by either the Department of Labor or the Department of Health & Human Services (HHS). So if something goes wrong say your doctor bills $1 million but your plan only covers $50K you’re on your own when it comes time to sort things out!

5. Consider Going Abroad For Care

If you have a serious or chronic condition, consider traveling abroad for care. Where you go depends on several factors, including the cost and effectiveness of treatment in a given country.

For example, if you have type 1 diabetes and need to get a kidney transplant, your costs may be much lower in South America than in the United States where many insurance companies won’t cover it because they consider it too risky (due to complications). 

The average cost of a kidney transplant is $63,000 in Colombia compared to $300k+ here in America (according to some estimates). 

Similarly, cancer treatments can be more effective overseas from both an efficacy and side effects standpoint: radiation therapy can sometimes do more harm than good when administered incorrectly. 

Other countries offer certain medical services that are not available here like stem cell transplants or interventional radiology procedures like stent placement and these might be worth considering as well

Are you considering freelancing as a path to building a sustainable business? Look no further! Our article on Why Freelancing Is the Best Choice for Building a Sustainable Business explores the numerous advantages of freelancing in today’s economy. From the potential for increased income to the flexibility to pursue your passions, this article highlights why freelancing can be a game-changer for aspiring entrepreneurs.

6. Ask About Concierge Plans

If you’re young and healthy, or if your medical needs are low, concierge medical plans may be a good option for you. These plans are meant for people with high-cost medical needs; they’re not for everyone. 

Conventional insurance is still the best way to protect yourself against catastrophic illnesses and accidents.

But if you have very specific health issues that aren’t covered by standard coverage (such as diabetes) and have the means to pay high premiums on top of your monthly expenses already, then concierge insurance could be a worthy investment.

Concierge plans aren’t actual insurance in the sense that they don’t provide any protection against unforeseen circumstances they only pay out when certain conditions are met (like having a heart attack). 

However, they can be used in conjunction with conventional health insurance to get care outside of the United States or obtain more than one procedure at once without having two different copays per visit.

7. Work For Companies That Offer Good Benefits Packages To Freelancers

Check the company’s policy. If you’re working for a company, check to see if your work is eligible for health insurance benefits. 

Some companies offer premium plans that cover more than just medical costs, like dental and vision coverage. Find out what kind of plan they offer and how it compares to other plans on the market.

Check out COBRA options if you lose your job or quit your job with no notice. If you lose your job or quit without giving notice, there are still ways to get affordable health insurance coverage through COBRA (short for Consolidated Omnibus Reconciliation Act). 

This allows employees who have lost their jobs due to no fault of their own (usually because of downsizing) to continue paying into employer-sponsored health care plans until they find another job or retire from their career altogether.

8. Look Into Sharing Ministries

If you’re looking for affordable health insurance without the hassle of dealing with an insurance company, consider joining a sharing ministry. Sharing ministries are non-profit organizations that allow people to share their medical expenses in exchange for lower premiums. 

They aren’t regulated by insurance departments, so they can be more flexible than traditional plans and may have fewer rules about what qualifies as a pre-existing condition.

However, sharing ministries don’t cover every service and may not have networks of doctors as big or as established as those offered by national insurers like Blue Cross Blue Shield or Cigna. 

And since these organizations aren’t bound by state regulations, some policies may be less comprehensive than others when it comes to prescription drugs and mental health treatment (for example). 

Still, if you’re looking for inexpensive coverage on your terms and willing to pay the price in other ways it could be worth investigating.

9. Be Cautious About Health Care Sharing Ministries Like Liberty Healthshare And Medi-Share, Which Aren’t Technically Insurance And May Not Cover Pre-Existing Conditions

Health care sharing ministries aren’t insurance, technically speaking. They’re not regulated by state governments, and they’re not subject to the Affordable Care Act (ACA). 

This means that if you apply for coverage through one of these ministries, you may be considered new to their system or denied coverage altogether if you have pre-existing conditions.

It’s also important to note that health care sharing ministries generally do not cover prescription drugs or mental health services on an ongoing basis you must pay out of pocket for those items when using this type of plan.

Wondering how some freelancers manage to achieve six-figure incomes? Our article on How Freelancers Like Me Make Six Figures delves into the strategies and insights shared by successful freelancers. From cultivating high-value clients to leveraging your unique skills, this article offers practical advice and inspiration to help you take your freelance income to the next level.

10. Be Careful About “Mini-Med” Plans, Which Have Very Low Annual Benefit Caps That Can Leave You Exposed In Case Of A Major Accident Or Illness

Mini-meds are not insurance. They’re a discount program that offers you a discounted rate on your medical care in exchange for you paying part of the bill yourself. 

While it may be tempting to get one of these plans if you’re on a budget, they won’t protect you from expensive health emergencies if your medical bills total more than the annual benefits cap. Some mini-meds don’t even cover prescription drugs at all!

They’re risky. Since these plans aren’t regulated by the government like traditional health insurance is, they can vary widely in terms of what they offer and how much they cost. 

Some have low annual benefit caps ($5,000/$7,500), while others have higher caps ($10K/$20K) or no limit at all! 

That’s right: if an accident or serious illness requires ongoing treatment beyond the annual limit set by your specific plan (which could be next year).

Then all bets are off you’ll have to pay out of pocket after reaching said limit until next year rolls around again when another round begins anew

Health insurance is a vital consideration for freelancers, and navigating the options can be overwhelming. Get valuable tips and insights on obtaining health insurance while freelancing in our informative article, Get Health Insurance When Freelancing: Tips. From understanding the different types of plans to exploring affordable alternatives, this article provides valuable guidance to ensure you can access the health coverage you need as a freelancer.

Conclusion

Hopefully, we’ve got you more excited (and maybe a little less nervous) about finding health insurance when freelancing. We know the struggle, and we came to these tips even the one about watching badminton! through our trial and error. 

Remember that the important thing is to keep on trying. As we covered earlier, you don’t have to go super hard on yourself for slip-ups, because this journey can take time and looks different for everyone. 

Plus, don’t forget that the best way to keep yourself on track is to keep it fun, keep positive, and keep yourself engaged with the people and the world around you. After all, caring about others is a great reason to switch to this lifestyle in the first place!

Further Reading

Here are some additional resources to further explore the topic of health insurance for freelancers:

6 Health Insurance Tips for Freelancers: This blog post offers six practical tips to help freelancers navigate the world of health insurance, covering topics such as cost-saving strategies and understanding different plan options.

How to Get Health Insurance as a Freelancer: Learn about the various options available for obtaining health insurance as a freelancer. This blog post provides insights into finding affordable coverage and understanding the eligibility criteria.

Health Insurance for Freelancers: Discover the importance of health insurance for freelancers and explore different avenues to secure coverage. This blog post discusses the advantages of having health insurance and provides guidance on selecting the right plan.

FAQs

What are the key benefits of having health insurance as a freelancer?

Having health insurance as a freelancer offers several advantages, including:

• Financial protection against high medical expenses
• Access to a broader network of healthcare providers
• Preventive care and wellness services
• Coverage for prescription medications

Can freelancers qualify for government-subsidized health insurance plans?

Yes, freelancers can qualify for government-subsidized health insurance plans through the Affordable Care Act (ACA). These plans are available through the health insurance marketplace and can provide financial assistance based on income and other eligibility criteria.

How can freelancers find affordable health insurance options?

Freelancers can explore various avenues to find affordable health insurance options, such as:

• Joining a professional association or union that offers group health insurance plans
• Researching and comparing health insurance plans from different providers
• Considering health sharing ministries or cooperatives as alternative options

What is COBRA coverage, and is it available to freelancers?

COBRA (Consolidated Omnibus Budget Reconciliation Act) coverage allows individuals to continue their employer-sponsored health insurance plan after leaving a job. However, as freelancers, they are typically not eligible for COBRA coverage since they don’t have an employer-sponsored plan.

Are there any specialized health insurance options for freelancers?

Yes, some insurance providers offer specialized health insurance options tailored specifically for freelancers. These plans often take into account the unique needs and circumstances of freelancers, providing flexibility, affordability, and comprehensive coverage options.