Like many people, I was scared to leave my full-time job for freelance work because health insurance is expensive, and freelancers don’t have the same employer healthcare benefits as people who work regular jobs. But I took the plunge anyway.
And guess what? Not only did I find a policy that works for me, but it’s also surprisingly affordable. Here are some tips I used to make my experience as easy and cost-effective as it can be:
| Takeaways |
|---|
| 1. Importance of Planning |
| 2. Exploring Health Insurance Platforms |
| 3. Considerations for Affordable Coverage |
| 4. Evaluating Coverage Needs |
| 5. Seeking Professional Advice |
Know Your Options
When it comes to choosing a health insurance plan, there are two basic things you need to consider: what you can afford and what you need.
The first step is figuring out how much money you have available each month for health care spending. Once you know this, next up is figuring out what kinds of coverage will best meet your needs.
You may already be covered through another source like your employer or spouse’s job, so it’s important to check before buying into something new.
If so, don’t let yourself be swayed by the shiny benefits of other plans that might seem more appealing at first glance (like lower premiums).
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Consider Getting A Health Care Advocate To Work On Your Behalf
If you’re a freelancer, there’s a chance that you don’t have the time or patience to research all of the options available to you. If this is the case, consider getting a health care advocate to work on your behalf.
A health care advocate can help you find the best coverage for your needs and budget. They can also help guide you through the complex bureaucratic process of applying for insurance which can be especially daunting if English isn’t your first language!
A health care advocate will be able to find out which doctors and specialists in your area are covered under each plan.
If there are any gaps in their coverage (like limited prescription options), they’ll let them know so that those issues may be corrected before they arise again later on down the road when it could prove more costly (or even deadly) than ever before.
Pay Attention To The Fine Print
As a freelancer, you’ll have to do your research and get familiar with the ins and outs of getting health insurance. In order to do this, you need to pay attention to two things: the fine print and your budget.
Fine Print
You should always read through any legal documents carefully before signing them so that you understand what you are signing up for.
This is especially important when it comes to health insurance plans because there can be hidden fees or other details that could come back to bite you later on down the road. Make sure that everything is clear from the start!
Budget
It’s also important that your budget allows for healthcare costs if you want them covered by an employer-sponsored plan like mine here at [company].
While I’m happy about my job here, it does come with some financial drawbacks such as higher premiums due in part because of our location near NYC which has higher costs than most places around here due mainly because we’re right next door 😉
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Don’t Be Afraid To Ask Questions
I’m a pretty independent person. I don’t like asking for help especially when it comes to my health. But in this case, I needed to do so. Here’s what happened:
I was assigned a freelance project that required me to make regular trips across the country and stay somewhere temporarily for two months at a time.
This meant that I’d need insurance for those few weeks each month, which would have been fine if I could have just gotten on my parents’ plan through Obamacare (more on that later).
Unfortunately, though, my parents didn’t qualify because they made too much money in their jobs as doctors and dentists respectively (not enough hours worked).
So instead of paying more than $300 per month plus coverage fees while freelancing full-time, we decided instead to look into getting temporary health insurance plans until we could find something permanent.
Look For “Provider Networks”
One of the most important features you should look for in a health insurance plan is a provider network.
Provider networks are simply groups of doctors and hospitals that have agreed to accept patients from a certain insurance provider because they trust that insurer’s reputation, or because it has negotiated better prices with those providers than other insurers in the area.
The good news is, that this means you can go to any doctor or hospital within your network and not get dinged with an out-of-network fee for your care.
The bad news is (you knew there had to be some), that provider networks also keep costs down by limiting your choices when it comes time to choose a doctor or hospital.
For example, if I get my knee replaced by one orthopedist surgeon who works within my insurer’s provider network but another orthopedist surgeon who works outside my insurer’s provider network offers me a lower price on my surgery.
Then I’m still stuck paying more money out of pocket at the end of the day because only one choice has been allowed through my insurer’s limited list of approved doctors and hospitals.
Which is exactly how health insurers want it so they can make more profit off their customers’ premiums by keeping them happy while still providing them with less choice overall!
Shop Around For Prescriptions Online
You may be able to save a lot of money on your prescriptions by shopping around.
Most people don’t realize that they can use the internet to get prices from different pharmacies, and most people don’t even bother checking their insurance coverage before asking their doctor for a prescription.
If you do this, you might find yourself paying an extra $10 per month for your medication when there’s another pharmacy just down the street that will give it to you for free!
If this sounds like it would help relieve some stress from your monthly budgeting, try searching on Google or another search engine for “online pharmacy”.
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Get An HRA (Health Reimbursement Account)
Health Reimbursement Accounts, or HRAs, are a type of health insurance that allows you to save for your medical expenses. They can be used to pay for many different types of services, like deductible payments and copays.
The money you put in the account is pre-tax and can be used tax-free at any time during the year it’s contributed.
This means that if your employer offers this option, they’ll likely match what you contribute up to some maximum amount (usually $1K-$2K).
Some employers also offer an incentive bonus at the end of each year based on how much money was saved in the HRA account during that year.
One big difference between HRAs and HSAs is that while both allow pre-tax savings towards medical expenses (like deductibles and copays), HRAs don’t allow those funds to roll over from year-to-year as HSAs do;
Instead, they have a “use it or lose it” policy which means once you hit your cap for annual contributions then all extra funds will go back into your paycheck without interest applied back onto them.
Making them slightly more valuable than traditional FSAs (Flexible Spending Accounts) but less valuable than HSAs for people who expect high medical bills throughout their career due to frequent injuries or chronic conditions like diabetes.
Be Proactive About Wellness
Now that you have some basic health insurance coverage, it’s important to take care of yourself. There are plenty of ways you can do this:
Eat healthily and exercise regularly. This type of lifestyle already sounds familiar because it’s what we all should be doing anyway! But especially when freelancing, you’ll get less sleep and more work than usual, making it easy to lose track of your wellbeing.
De-stress by taking time off from work every day (even if it’s just an hour), meditating or practicing yoga, going for a walk with friends or family members (or both), etc.
It will help keep your energy levels up so that you’re not burning out from working too much which isn’t good for anyone involved in the project(s) at hand either!
Take care of your mental health by talking about any problems or concerns with trusted friends/family members/co-workers that are close by geographically speaking;
If none exist locally then consider finding someone online who has similar interests/beliefs as yours via social media platforms such as Twitter or Facebook Messenger where many other people share similar struggles as well.
Ask Your Doctor About Generic Drugs
You may be able to save money if you ask your doctor about generic drugs. Generic drugs are usually cheaper than brand-name drugs, and they’re just as good!
Generic medications have the same active ingredients and work the same way as their brand-name counterparts, but they don’t have the same marketing or advertising costs associated with them.
The FDA has also approved every single generic medication on its list of approved medicines as being safe and effective for treating whatever condition it’s meant to treat.
Generic medications are usually cheaper because they don’t have to pay for all those expensive advertisements that brand-name medications do just like how buying frozen vegetables are often cheaper than buying fresh ones at the grocery store!
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Use Free Resources As Much As Possible
Use free health services. The government has many resources that can help you get the medical care you need, at no cost to you.
Visit your local health department and ask if they have any programs in place for low-income individuals or uninsured patients. If so, these programs may be able to provide you with free medical care and prescriptions if your income falls below a certain level.
Use community health centers (CHC). Community health centers are nonprofit organizations that provide high-quality primary care for underserved communities throughout the country, regardless of insurance status or ability to pay.
They’re funded by Medicare and Medicaid payments as well as grants from foundations or private donors and they offer many of their services at no cost to patients who qualify based on income guidelines set by each center individually (check out the table below).
Many CHCs also accept private insurance plans when they cover low-income patients; however, these plans often have high deductibles and some people might not want their employer to know about an illness treatment.
It might be easier just going straight through the CHC instead!
Consider Preserving A Group Policy Through COBRA.
You may be able to keep your existing health insurance if you lose your job, but it’s not easy.
COBRA (Consolidated Omnibus Budget Reconciliation Act) allows people who are no longer covered by their employer’s plan to continue getting coverage for 18 months (or 36 months in some cases), but they’ll have to pay the entire premium themselves, which can add up quickly.
You can find more information about COBRA here [link].
Consider Signing Up For Obamacare Or One Of Its Alternatives
If you don’t qualify for public coverage like Medicaid or Medicare Advantage, then consider signing up for an ACA-compliant plan on HealthCare.gov or another private health insurance exchange website like eHealthInsurance [link].
This route is also an option if you’re ineligible for coverage through work due to preexisting conditions or other reasons;
Most states allow people without access to employer plans to purchase coverage from the exchanges regardless of income level and other factors that might otherwise make them ineligible based off age alone [source].
With A Little Work, You Can Find Affordable Health Insurance For Freelancers Or Entrepreneurs That Works For You
If you’re a freelancer or entrepreneur, finding health insurance can be tricky. You may not be able to get coverage through your employer, and even if you could, it might cost more than you can afford.
Thankfully, there are plenty of options out there for those looking for affordable coverage and some may surprise you!
We’ll go over the different types of plans available to freelancers and entrepreneurs so that when it comes time to enroll in a plan that works for you, you’ll know exactly what your options are and how much they will cost each month.
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Conclusion
While there is no one-size-fits-all option for health care coverage for freelancers or small business owners, with some research and a lot of patience, you can find an insurance plan that works for you.
While it may be tempting to find the most affordable plan out there, remember that if your insurance doesn’t cover what you need when it comes time to use it, those savings won’t mean much.
A good rule of thumb is to look at your past year’s medical expenses and make sure they’re covered by your new policy. That way, should anything happen in the future, you’ll have peace of mind knowing your doctor’s visits won’t cause financial stress.
Further Reading
6 Health Insurance Tips for Freelancers: Discover essential tips to navigate health insurance options as a freelancer and secure the best coverage for your needs.
Freelancer Health Insurance: Learn about health insurance options tailored specifically for freelancers and how to find the right plan to protect your health and finances.
Health Insurance for Freelancers: Explore comprehensive information on health insurance choices available to freelancers and how to make informed decisions about your coverage.
FAQs
How important is health insurance for freelancers?
Health insurance is crucial for freelancers as it provides financial protection against unexpected medical expenses and ensures access to quality healthcare services.
Can I find specialized health insurance plans designed for freelancers?
Yes, there are health insurance plans specifically designed to meet the needs of freelancers, offering flexible coverage options and accommodating varying income levels.
What are some key factors to consider when choosing health insurance as a freelancer?
When selecting health insurance, consider factors such as coverage options, premiums, deductibles, provider networks, and whether the plan covers essential services you may require.
Are there any resources to help me compare health insurance options for freelancers?
Yes, there are online resources and comparison tools that allow freelancers to explore different health insurance plans, compare benefits, and choose the most suitable option.
How can I manage health insurance costs as a freelancer?
To manage health insurance costs, consider exploring group insurance options through professional organizations or freelance associations, or opt for high-deductible plans paired with Health Savings Accounts (HSAs). Additionally, some states offer subsidies or assistance programs for freelancers.
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.