Health insurance is one of the most important investments you can make in your future. Without it, a single trip to the emergency room could cost you tens of thousands of dollars.
Yet many freelancers still don’t have health insurance, which could be disastrous if they ever get sick or injured (or if they ever get stuck with a hospital bill).
If you’re a freelancer and don’t have insurance yet, this article will help you understand your options and choose the best plan for your situation.
| Takeaways |
|---|
| 1. Research various health insurance options for freelancers to find the most suitable coverage. |
| 2. Consider joining professional associations to access group health insurance plans at lower rates. |
| 3. Evaluate plans for coverage of pre-existing conditions to ensure your medical needs are met. |
| 4. Compare premiums, deductibles, and network providers to select a plan that fits your budget. |
| 5. Explore alternative options like health savings accounts and short-term health plans if applicable. |
Health Insurance Is Not Cheap
Health insurance is not cheap. While it’s an important part of your overall financial picture, you may have a hard time justifying the cost of a health insurance plan with premiums and co-pays.
If you’re looking for ways to lower your costs while still maintaining quality coverage, here are some tips:
- Look at both options and tax credits. Your employer may offer benefits through a group plan or you may be able to get coverage through private market exchange.
- Get as much information as possible before picking a particular plan or provider. There are plenty of options out there!
- Remember that if something happens with one plan, it isn’t over you can always switch again later if necessary (or leave when needed).
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Get An Estimate Of Your Medical Costs
There are a few ways that you can get an estimate of your medical costs. You can call up any hospital and ask them for the total cost of a specific condition, procedure, or surgery.
The hospital will be able to tell you exactly how much it costs to have surgery at their facility and what kind of insurance is accepted there. Another option is to use an online price estimator tool.
These tools aren’t as detailed as calling up hospitals but they do give you a rough idea about how much things might cost at different hospitals and clinics throughout your state or country.
They won’t go into details about what type of insurance they accept because there are so many different options out there (see below).
Many Plans Require A Medical Exam
You should be aware that many health plans require a medical exam. This can include blood tests, urine tests, and other examinations of your health. The cost of these exams can vary greatly depending on what you need.
If you have to pay out of pocket for a medical exam it may be worth your while to get some quotes from different providers so that you know what is reasonable before taking the time off work and making an appointment with them.
Some providers will offer discounts if they know ahead of time that they are going to do an exam for someone who has not had one in a while.
Or who needs it again because their last one was done poorly or not completed at all during the last renewal process (of course this depends on how many years have passed since then too).
When researching which providers offer low-cost/free services it’s important to remember that most labs will need some type of referral from your doctor before doing the test(s) so don’t forget about this step!
One benefit from having these exams done early: It gives you time later down the road when filing claims with insurance companies so there will be no questions about why certain procedures were necessary once they come back cleanly negative 🙂
You Will Likely Have No Choice But To Pay For COBRA
COBRA stands for Consolidated Omnibus Budget Reconciliation Act, which is an insurance law that requires employers to continue providing health insurance coverage to former employees (and their dependents) when they leave the company.
COBRA lasts for 18 months after you leave your job and will be the only option if you don’t have another health plan or Medicare.
Once you’ve left your job and are eligible for COBRA, it can be expensive as much as $600/month in some cases so try to make sure that you have another plan lined up before leaving your job.
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Your Job May Offer Additional Health Insurance Benefits
I’m sure you’ve already talked to your employer about their benefits. This is a good idea because many companies offer additional health insurance options for their employees.
If you’re married or living with someone who has coverage through work, it’s worth asking whether they can add your name to the group plan to get additional benefits (and save on costs).
In some cases, an individual plan may be cheaper than the group option but if that’s not the case for you and your spouse/partner/roommate etc., go ahead and sign up so that everyone gets better coverage!
Finding The Right Plan Depends On Your Situation
It’s important to find a plan that covers your needs and offers affordable monthly premiums, but you’ll also want to make sure that it has the right type of coverage for your situation.
Most plans are divided into three categories: health maintenance organizations (HMOs), preferred provider organizations (PPOs), and point-of-service plans.
When choosing an insurance plan, it’s important to understand the difference between these types of coverage so you can choose what works best for your situation. HMOs, are typically less expensive than other types of coverage because they limit where patients can seek care.
With an HMO, providers must be in-network before they can provide services at no cost and if you go outside those networks without getting prior authorization from your insurer or primary care physician first, they may deny payment altogether.
PPOs offer more flexibility and save money on out-of-network care because they allow members to see any doctor or specialist who accepts their particular network agreement (as opposed to only those who accept the entire network).
However, if patients need urgent care at a community hospital rather than one within their plan’s contracted group of doctors/specialists and providers accept these contracts then members will still pay coinsurance amounts normally seen with traditional health insurance plans.
Talk To Your Tax Accountant About HSA Plans
If you have a high-deductible plan and want to reduce your out-of-pocket expenses, consider an HSA. These are tax-advantaged savings accounts that can be used to pay for medical expenses.
Contributions into an HSA are made with pre-tax dollars, so you’ll save money when it comes time to file taxes.
Some plans even offer a matching contribution from the employer or other coverage providers this is especially beneficial if your employer offers a generous match on other types of retirement savings plans as well!
If you’re self-employed, no rule says you must use your HSA funds on health care costs only.
For example, if something breaks in your house and needs repair (like an appliance), then money from the account could help cover these costs until insurance kicks in or replace damaged items entirely if covered by homeowner’s insurance policies.
Some Small Businesses Will Help Their Employees Get Coverage
Many small businesses have started offering health insurance to their employees in recent years. This can be a win-win situation, with both parties benefiting from the arrangement.
The business benefits because they’re able to attract talent who may otherwise have turned them down due to the lack of coverage.
Employees benefit because they now have access to health insurance, and can get treatment without worrying about how much it will cost them or if the company will pay for it.
But what exactly does “offering coverage” mean? And how does a small business go about offering it? In this section, we’ll cover all that and more!
Do Some Math And See Whether It’s Worth It For You To Buy Long-Term Health Care Insurance
Long-term care insurance is a type of health insurance that pays for long-term services and support if you need them.
The most common example of this is nursing home care. Long-term care insurance can also pay for personal assistance services, like help with bathing and dressing.
You may find that it’s not worth spending money on long-term care insurance if:
- You are young and healthy
- You have a chronic illness, but feel like you’ll be able to manage your condition yourself for the next few years or so
Long-term care policies typically cost more than individual health plans (though some plans cover both).
In many cases, though, it still may be worth it for you to get one if your family history shows that you’re likely destined for early death from cancer or something else that requires expensive treatment.
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Some States Offer Low-Cost Or Free Health Insurance Programs For Certain Groups Of People
Many states offer low-cost or free health insurance programs for certain groups of people. If you’re on a low income, have a disability, are over 65 years old, or have children under 19 years old who live with you and need care, look into your state’s program.
Check with your local social services office or call 1(800) MEDICARE for more information about these types of programs. You can also check with your insurance company.
Be Wary Of Deductibles And Copays, Which Can Vary Greatly From One Plan To Another
Deductibles and copays are two key factors you should consider when buying health insurance, whether you’re freelancing or not.
If you have coverage through an employer, your deductible might not be a huge concern yet but as a freelancer, you’ll likely want to get the best bang for your buck.
Deductibles are the amount that you pay before your insurance kicks in (kind of like how car insurance deductibles work). If your surgery costs $10,000 and your deductible is $10,000 total well then!
That’s just how it goes! Copays are similar: they’re the amount of money that each visit or procedure is going to cost while on this plan.
Do Not Go Without Health Insurance!
If you’re a freelancer or a student, or if you’re self-employed, chances are your health insurance options are limited. But that doesn’t mean there aren’t any! It just means that it’s important for you to understand how these types of plans work and what kind of coverage they offer.
Health Insurance for Self-Employed Individuals (or Freelancers): If you’re self-employed or freelance, getting health insurance is all about finding an individual plan that fits into your budget while also meeting the basic coverage requirements set by the Affordable Care Act (ACA).
The ACA requires all individual plans sold on the exchanges in 2019 and beyond to include certain essential benefits. For example, all plans must cover mental health care as well as maternity care.
Health Insurance for Students: Students can only purchase an individual plan through the ACA exchange if they meet certain criteria such as having pre-existing conditions or being under 26 years old at the time of enrollment with student medical coverage through their college/university
If You’re Young, Healthy, And Relatively Active, Catastrophic Plans May Work For You, Especially If Money’s Tight Right Now
Catastrophic health insurance plans are cheaper than other types of coverage but they generally only cover major medical expenses. The problem with these plans is that they don’t cover routine care like check-ups or prescriptions.
So if your child gets sick or needs a prescription medicine regularly, this won’t be an option for you.
Catastrophic plans are also only available to people who can’t afford any other type of health insurance coverage or who have been denied other types of coverage because they have pre-existing conditions (a history of chronic illness).
Learn What “Exclusions” Are, And How They Relate To Your Specific Medical Needs
When you’re choosing a health insurance plan, it’s important to understand and appreciate the differences between the various types of coverage. One such difference is exclusions, which are specific conditions or circumstances that your health plan does not cover.
Exclusions have a few different functions: they help keep premiums low (because otherwise, all medical bills would be covered), and they protect you from being stuck with an unexpected bill for something you didn’t expect (like being hospitalized for food poisoning).
And they ensure that your policy doesn’t cover things that would be considered a normal part of everyday life (like routine checkups).
But since there are so many different circumstances that could result in an exclusion, consulting with your physician will allow them to walk through exactly how these rules apply to you personally and whether or not they’ll avoid any unexpected costs down the line.
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If You’re Single And Looking To Start A Family, Look Into Maternity Coverage Options Before You Sign Up With A Plan
If you’re single and looking to start a family, look into maternity coverage before signing up with a plan.
Many plans may not cover maternity or delivery services, and others may only offer partial coverage. Before making any commitments, check the policy details carefully to ensure that they will provide sufficient coverage for your needs.
Make sure that the plan covers prenatal care; if it doesn’t, find out how much this will cost on your own before adding it to your monthly premiums.
Check whether or not the plan covers postpartum care (newborn care).
If it does not cover this either, ask about other options for paying for these services – perhaps some combination of private insurance and a flexible spending account (FSA) would work better than having no insurance at all?
Don’t Be Afraid To Talk To A Professional If You’re Confused About Your Options When Searching For A Health Care Plan
You can talk to a financial advisor, health insurance professional, accountant, friend, or family member. You can also ask your doctor or lawyer. If you’re confused about your options and how they relate to your situation as a freelancer, it’s OK to reach out for help.
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Conclusion
Okay, that’s all for now! We hope we’ve given you some helpful tips to keep in mind when shopping for health care coverage. The good news is that there are many options out there, so you should be able to find a plan that works well for your needs and budget.
If you’re still struggling with this whole process or just have more questions about insurance plans in general, don’t hesitate to reach out and talk with us directly; we’ll be happy to help in any way.
Further Reading
6 Health Insurance Tips for Freelancers: Discover practical tips to secure the best health insurance coverage while freelancing.
Health Insurance for Freelancers: Learn about various health insurance options tailored for freelancers’ unique needs.
Yes, Freelancers Can Get Health Insurance: 12 Options: Explore 12 different health insurance choices available to freelancers, ensuring you find the right fit for your situation.
FAQs
Q: Can freelancers find affordable health insurance plans?
A: Yes, freelancers have access to a range of health insurance options, including marketplace plans and professional associations’ coverage, which can be affordable and tailored to their needs.
Q: What if I have pre-existing health conditions as a freelancer?
A: Many health insurance options for freelancers cover pre-existing conditions, but it’s essential to research and compare plans to find one that meets your specific medical requirements.
Q: How do I know which health insurance plan is right for me as a freelancer?
A: Evaluating factors such as coverage, premiums, deductibles, and network providers can help you determine which health insurance plan aligns best with your healthcare needs and budget.
Q: Can freelancers get group health insurance coverage?
A: Freelancers who belong to professional organizations or associations may have access to group health insurance plans, which can offer more affordable rates and comprehensive coverage.
Q: What are some alternatives to traditional health insurance for freelancers?
A: Freelancers can explore alternatives like health savings accounts (HSAs), health sharing ministries, and short-term health plans as options that might suit their unique circumstances. However, it’s essential to understand the limitations and benefits of each alternative.
Costantine Edward is a digital marketing expert, freelance writer, and entrepreneur who helps people attain financial freedom. I’ve been working in marketing since I was 18 years old and have managed to build a successful career doing what I love.
