Health Insurance Can Save You From Going Broke When Freelancing

The number of Americans who work for themselves has risen to 42 million.

For many, like me, freelancing allows much more flexible working hours and gives you the ability to be your own boss. But with that freedom comes its own risks. 

You lose the safety net of a company health plan and the protection of workers’ compensation if you become injured on the job. In addition, you’re responsible for making sure your taxes are paid on time and in full, which can be tricky when you’re self-employed. 

Luckily, there are several strategies I’ve learned over my years as a freelancer that can help put your mind at ease as well as keep you financially stable while working for yourself. Here they are:

Takeaways
Health insurance is essential for freelancers to safeguard their financial well-being.
Having health coverage protects freelancers from incurring substantial medical expenses.
Access to healthcare services ensures freelancers can maintain their productivity and work capacity.
Properly chosen health insurance can prevent financial hardships during unexpected health issues.
Freelancers should research and select the most suitable health insurance plan for their needs.

Sign Up For COBRA

If you have been laid off, or if your spouse loses his or her job, COBRA is a federal law that allows former employees to continue their health insurance coverage for up to 18 months.

It’s not a government program it’s an extension of the company’s insurance plan. The company pays for the additional cost of covering you as well as any increase in premiums due to pre-existing conditions.

If you take advantage of COBRA and use its benefits through their entire period (18 months), then when it comes time for Medicare eligibility (which is on average at age 65), there will be no gap in coverage because Medicare picks up where COBRA leaves off. 

However, once enrolled in Medicare Part B (medical insurance) any other services such as dental coverage would need to be purchased separately again through private carriers like Blue Cross/Blue Shield or Cigna Dental​​​

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File For Social Security Disability

Filing for Social Security Disability Insurance (SSDI) as soon as you can is one of the best ways to ensure that you have a safety net in place. 

This insurance plan provides monthly income for people who are unable to work due to illness or injury, regardless of whether they are employed or not. 

But don’t wait until you’re desperate and disabled before filing for SSDI if it’s available, better file while able-bodied than risk missing out on benefits if something happens later on down the road. 

You also shouldn’t wait until your diagnosis is terminal; this means waiting until the doctor says “you only have six months left” before applying! 

The first step should always be filling out an application packet and getting any necessary medical tests done within 30 days of receiving notification that your claim has been accepted for review by an administrative judge at Social Security headquarters in Baltimore MD*.

Learn How To Appeal An Insurance Claim Decision

When your insurance company refuses to pay for a claim, there are several steps you can take to fight their decision. These include:

Appealing to an independent third party. In some cases, if the insurance company or provider (like a hospital) denies your claim, they’ll tell you that they need additional information before making a decision. 

If this happens, send them all of the additional information they’ve requested within 15 days of receiving it and notify them that if no action is taken on your claim within 30 days after sending in all of this extra info (or 60 days if it’s during open enrollment). 

Then you will appeal the decision by having an independent third party review it for fairness and accuracy.

Appealing before state boards and agencies. Most states have an agency set up specifically for hearing appeals from insurance companies’ decisions not to pay claims; 

These agencies often work with consumer protection attorneys who can help with appeals pro bono or at reduced rates due to their affiliation with such agencies.

Going directly through state legislatures or legislatures’ executive branches (i.e., governors). If going through state boards isn’t helping enough or doesn’t exist in your area it may be worth contacting local elected officials directly about the issue.

Hiring legal counsel and taking legal action against insurers; including filing lawsuits regarding disputed claims with federal courts as well as state ones.

Contacting agencies like Medicare/Medicaid which may be able to help resolve disputes over payments made by private insurers

As a freelancer, health insurance is a critical aspect to consider for financial security. Learn more about what every freelance writer and blogger needs to know about health insurance to ensure you are well-prepared for any medical emergencies.

Consider A Health Care Plan That Is Not Part Of Obamacare Exchanges

You will find that there are many options for health insurance when you freelance. You may also be able to get a group plan through your spouse if you have one.

If you are self-employed or otherwise don’t have access to affordable coverage through an employer, it is still possible for you to get affordable health care coverage without paying full price out of pocket. Here’s how:

Consider getting a high deductible plan with a Health Savings Account (HSA). 

These plans offer lower monthly premiums along with higher deductibles than traditional plans and they typically come with an HSA option that lets them deposit pre-tax dollars into their account every month so they don’t need as much cash on hand when they need medical care. 

HSAs allow individuals to pay for medical expenses without being penalized in taxes afterward, making them a great way for freelancers who want more flexibility over their finances but still want peace of mind knowing that their basic needs are covered.*

Consider looking at an association plan (e.g., Blue Cross/Blue Shield) which may offer different benefits than those offered by Obamacare exchanges because associations aren’t required under the ACA law as companies must be. 

So if your state doesn’t have its exchange then this might be another option worth looking into

Join A State High-Risk Pool

Another option is joining a state high-risk pool. These non-ACA-compliant plans provide coverage to individuals with pre-existing conditions who have been denied coverage by private insurance companies. 

They’re not cheap, but they might be your only option if you have serious health issues or are expecting an expensive pregnancy.

In most states, you can apply for these plans directly through your state’s department of insurance or human services (for example, California’s Health Insurance Information Program). 

The application process can vary depending on the organization running the pool in question you may need to fill out some paperwork or submit fingerprints and photos as part of your application process. 

But once you’ve been accepted into the program, it will cover all eligible medical expenses incurred while you’re covered under its plan.

Managing an Upwork freelance job can be challenging but rewarding. Discover valuable insights and tips in our article on what I’ve learned about managing an Upwork freelance job to boost your success as a freelancer.

Research Veterans’ Benefits

You might be eligible for health care benefits if you’re a veteran and even if you’re not, it’s worth looking into. The Department of Veterans Affairs (VA) offers a variety of programs to help veterans and their families with healthcare costs.

If you’re a veteran, the VA will cover more than just physical trauma and illness. The agency covers mental health conditions as well: depression, anxiety disorders, post-traumatic stress disorder (PTSD), bipolar disorder, and schizophrenia are all covered by the VA’s healthcare plan. 

In addition to those conditions listed above, some veterans may also qualify for physical disabilities resulting from military services such as spinal cord injuries or amputation; 

Others may receive government assistance after experiencing cancer or diabetes complications due to exposure on duty overseas.

The VA also offers coverage through its Veteran Benefits Administration program called “Health Insurance Program.” 

This plan allows active-duty military personnel who have purchased their insurance plans through an employer but would like additional protection from unexpected medical emergencies such as serious illnesses or injuries requiring hospitalization at no cost during nonworking hours. 

When normally scheduled work would interfere with treatment schedule requirements (such as surgery). All this means that even if you don’t meet any specific criteria for receiving benefits under another category mentioned above. 

But still want some extra financial support when it comes time to get treated then take advantage of this provision because it could mean big savings over time!

See If Your Spouse Can Add You To Their Plan

See if your spouse can add you to their plan. If you have a spouse and have health insurance through them, it’s worth checking if they can add you to their coverage. 

This is often possible for dependents who are eligible to enroll in their employer-sponsored plan (the “employee” will usually be the primary subscriber and foots the bill). 

If they do add you, this means they’ll pay both your contributions into their plan as well as any out-of-pocket costs that arise from seeing doctors or getting prescriptions filled. 

Even if they don’t qualify for an affordable family plan or don’t want one just yet, adding yourself may still save some money because self-employed people tend not only to pay higher premiums than full-time employees but also high deductibles and co-pays on top of that.

If those options aren’t feasible ones though maybe there’s no room left on your spouse’s network or maybe neither of you has access yet consider investing in COBRA instead (COBRA stands for Consolidated Omnibus Budget Reconciliation Act). 

Under COBRA rules which were passed in 1986 by Congress during President Reagan’s administration) companies must offer former employees who’ve lost employment due to health issues access up until three years after termination; this includes spouses too! 

So if you lose work temporarily due to illness then switch jobs frequently since freelancing work doesn’t come with benefits packages like traditional salaried positions do; buying COBRA may be a worthwhile option here too!

Ask Your Employer About Group Plans Offered Through Former Employees And Retirees

If you have a lot of experience working for one company, there’s a good chance they offer health insurance benefits to former employees and retirees. This can be especially true if you were part of the company’s union or another collective bargaining unit. 

If you had good benefits while working at this job, it might make sense to see if the plan is still available after leaving your job.

Group plans are generally cheaper than individual plans because they pool risk, which means that more people are paying into the system who take out less money than they pay in. 

In addition to potentially lower monthly payments, group plans also typically include coverage for dependents; this may not always be the case with individual policies (especially if dependents are older than 26). 

Group plans can also be cheaper than individual policies because groups tend to have better negotiating power with insurance companies since they’re buying in bulk which makes it easier for them to get better deals on premiums.[1]

Pay Attention To Open Enrollment Periods

Once you’re freelancing, you’ll want to pay attention to the open enrollment period. That’s because this is the only time you can change your insurance policy or coverage. 

You can only do it during open enrollment periods, and the two most common ones are in fall and spring (as those are the seasons when most people tend to sign up for health insurance).

The 2020 open enrollment period will be from November 1, 2019, through December 15, 2019; however, there may be some changes or extensions due to healthcare reform. 

You must take advantage of these opportunities when they arise so that if something happens while freelancing like medical issues or injuries your family doesn’t have to worry about going broke paying for them.

Affordable health coverage is essential for freelancers to protect their well-being. Explore various options and strategies in our article on how to get affordable health coverage as a freelancer to find the best plan for your needs.

Split Coverage By Offering Coverage That Is Below The Average Cost Of Coverage

Another way to save money on health insurance is to work with an insurance broker. They can help you find a plan that’s suited to your needs, and it doesn’t have to cost an arm and a leg. 

They can also advise you on how much coverage is enough for the average person in your line of work so that you don’t end up overpaying for unnecessary coverage.

If you’re self-employed or working as a freelancer, it’s important to get health insurance because if something happens like an accident or sickness, then it will be very expensive (not just for yourself but also for those around you). 

If not covered by their employer’s health plan, most Americans will be left with two choices: buy their policy or go without coverage altogether and neither option sounds very appealing!

Look Into Private Health Insurance

You should also look into private health insurance. While it may seem like the most expensive option, private health insurance can be a good choice for freelancers because they offer more flexibility than a group plan and often come with lower premiums.

You should keep in mind that not everyone is eligible to apply for private health insurance. In some cases, you may have to wait until you’ve been self-employed for over 12 months before your policy will start paying out benefits. 

Some insurers also place restrictions on who they’ll cover if they do decide to insure you for instance.

Some will only accept applicants who don’t smoke or drink alcohol excessively and are otherwise healthy individuals with no pre-existing conditions (which means that people with chronic illnesses or disabilities may find themselves unable to sign up).

Before committing yourself to any one company or product, make sure that all of your questions about cost and coverage have been answered so there won’t be any nasty surprises later on down the line!

Consider Health Services Organizations (HSOs) Or Health Maintenance Organizations (HMOs)

If you’re looking to save money on your health insurance plan, consider an HMO or PPO.

HMOs are a type of managed care plan that limit your choice of providers and require you to use doctors, clinics, and hospitals within the network. They often have lower premiums than PPOs but higher deductibles and copayments.

PPOs allow you more flexibility in choosing a provider (you can see doctors outside the network) but tend to be more expensive than HMOs because they don’t have as much oversight over doctor charges.

Rely On Medicare Or Medical Assistance Programs For Medicaid, CHIP, TANF, And SSBG If Needed

If you are not eligible for Medicare, or if your income is too high to qualify, you can apply for Medicaid. Medicaid is a federal program that helps pay for health care for certain people and families with low incomes and limited resources.

It’s important to note that many states have expanded their Medicaid coverage beyond the traditional requirements. 

So even if you don’t meet the eligibility requirements listed here, contact your state’s Medicaid office to see if there are any other ways in which they might be able to help you access coverage.

Because health insurance premiums can be expensive, especially when buying them on your Medicare may be one of the most affordable options for freelancers who need coverage.

Choose Medical Savings Account (MSA) Plans Or Savings Account (HSA) Plans To Help Save Money On Healthcare Costs And Taxes At The Same Time

This one’s a two-parter. First, an MSA plan is a medical savings account that lets you put money aside tax-free and use it to pay for certain health care expenses, like deductibles and copays. 

You can also invest the funds in stocks or bonds if you want them to grow faster but there are some limitations on how much money you can contribute each year (in 2019, it’s $2,700 for self-only coverage). 

An HSA works similarly but has fewer restrictions on how you spend the money: You just have to wait until retirement age before withdrawing from the account.

Next up is an HSA: It’s similar to an MSA except that contributions are not tax-deductible instead, they’re made with pretax dollars so even more of your hard-earned cash stays in your pocket. If this sounds good to you, then by all means go ahead and skip over Section 3!

Find Out If You Are Eligible For A Tax Credit Or Subsidy Based On Your Income Level

If you’re a freelancer and you make less than $48,560 per year (as a single filer), or $100,400 per year as a married couple filing jointly, chances are good that your state has some tax credits or subsidies available to help low-income people pay for health insurance.

My state of New York currently offers two different types of tax credits: the Basic Health Plan Premium Assistance Credit and the Small Business Healthcare Tax Credit. 

The first is for those who qualify for Medicaid but don’t want to enroll in it it reduces your monthly premiums by up to $20. 

The second is specifically designed for small businesses with 15 employees or fewer that have an average annual payroll under $500,000; 

If they offer health insurance coverage for at least 60% of their employees’ work hours each month they can receive up to 20% credit on their premium costs (a maximum of 40%).

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Increased Premiums Due To Age Or Pre-Existing Conditions Can Be Reduced With A Surcharge Waiver Program

If you are 62 years of age or older, or if you are not eligible for Medicare and have an individual health insurance plan (which includes those who purchase their plans), there are surcharge waiver programs that can help reduce your costs. 

These waivers allow you to apply for reduced premiums based on your age and/or pre-existing condition status.

These programs are available in every state except New Mexico, California, Nevada, Idaho, and Hawaii.

Conclusion

Hopefully, this post has helped you see that health insurance can be a worthwhile investment for freelancers. Though it may seem like an expense you’d rather put off, having the right coverage can mean the difference between living comfortably or going into debt over medical bills. 

It just makes sense to ensure that you’ll be able to make your mortgage payments and keep food on the table if something happens.

Further Reading

Here are some additional articles that provide valuable insights into freelancer health insurance:

Freelancer Health Insurance – A Comprehensive Guide Short Description: Learn about the importance of health insurance for freelancers and gain a comprehensive understanding of available options.

Getting Self-Employed or Freelancer Health Insurance Short Description: Discover essential tips and considerations for obtaining health insurance as a self-employed or freelance individual.

6 Health Insurance Tips for Freelancers Short Description: Get valuable advice on managing health insurance as a freelancer, including tips to find the most suitable coverage.

FAQs

Frequently asked questions about freelancer health insurance:

1. Why is health insurance important for freelancers?

• Short Answer: Health insurance provides financial protection against medical expenses and ensures access to healthcare services for freelancers.

2. What options do freelancers have for obtaining health insurance?

• Short Answer: Freelancers can explore individual health insurance plans, healthcare marketplaces, or professional associations that offer group coverage.

3. How can freelancers find affordable health insurance plans?

• Short Answer: Freelancers can compare and research different plans, utilize healthcare marketplaces, or consider freelancer-specific group plans.

4. Can freelancers qualify for government-subsidized health insurance?

• Short Answer: Freelancers with low income may qualify for government subsidies to help reduce health insurance costs.

5. Are there any tax benefits associated with freelancer health insurance?

• Short Answer: Yes, in some regions, freelancers may be eligible for tax deductions or credits for health insurance premiums, offering potential cost savings.