How To Find Health Insurance When You're Self Employed

It’s disheartening to know that many Americans are stuck in jobs they hate, just so they can get health insurance. But long gone are the days when you have to stay at a job for the health insurance.

Many people have cut ties with their full-time jobs and are now freelancing, starting businesses, or working odd-jobs just to get by.

According to Forbes, around 53 million people in the US (or 35% of the workforce) are considered self-employed a figure that continues to grow every year.

There’s something undeniably appealing about being your boss and pursuing your passions, but getting health insurance as someone self-employed can be tricky. In this article I’ll show you how it can be done:

How to Get Health Insurance When Self-Employed – YouTube

Takeaways
1. Research government-run health insurance marketplaces for available options.
2. Consider individual health plans or joining a spouse’s employer-sponsored plan.
3. Compare different health insurance plans from various providers to find the best fit.
4. Explore joining professional associations or organizations that offer group coverage.
5. Consult with a tax professional to understand potential deductions and tax credits.

Table of Contents

Don’t Be Scared Of The Word “Self-Employed”

Now that you understand how your self-employed status affects your health insurance options, it’s time to start exploring those options. Don’t let the word “self-employed” scare you off there are many resources available to help you get insured and keep yourself healthy.

If you’re looking for an employer-sponsored plan, like a COBRA option or an individual health plan through your former company’s benefits department, know that there might be a waiting period before coverage kicks in (if it’s even offered at all).

This is because these types of plans have different rules than what would apply if they were purchased directly from an insurance company or through a broker.

For example, COBRA only covers employees who leave their jobs involuntarily due to retirement or disability; in other words, if someone quits their job without having another lined up first then they won’t qualify for this type of coverage alone.

However! If that same person does find another position before starting their new job then there may be some wiggle room when it comes down specifically which months will count toward those pre-existing conditions exclusions outlined above so don’t give up hope yet!

When it comes to getting freelance health insurance in the USA, it’s crucial to be aware of the top considerations. Our article on Top 15 Things to Look Out for When Getting Freelance Health Insurance in the USA provides valuable insights to help you make informed decisions.

Be Realistic About Your Budgeting

Once you’ve figured out the type of insurance you want, it’s time to calculate your budget. When I say “budget” I don’t mean that you should live on Ramen noodles for the rest of your life and buy only health insurance that would be silly!

But it is important to consider all factors when determining how much money you need to set aside each month.

Be realistic about both your income and expenses. If your company pays for most things (aside from medical), then it might be difficult for you to save up enough money by yourself to pay for adequate coverage by yourself.

It may be necessary for some people who are self-employed or freelance workers at home with children that they have other sources of income besides their freelance work (e.g., part-time job, spouse’s full-time job).

On top of this being realistic about money matters also helps when determining which type of plan works best for one person over another.

Because we all have different needs when it comes down to deciding whether or not we want something like dental coverage included as part of our health plan:

Do we own our own home? Do we need prescription plans? How many family members will be on this policy? What kind of deductible should my monthly premium include so that I can still afford monthly payments even if something happens unexpectedly?

These questions can help determine what type/level plan would work best within a budget before signing up online through some third party website like eHealthInsurance which could offer discounts based upon the payment method used;

However, remember that sometimes these discounts may not be worth saving up cash only until after taxes come out since this means longer wait times perhaps months instead of weeks depending on how quickly tax refunds arrive after filing!

Utilize Tax Breaks For Self-Employed People

It’s always a good idea to pay attention to the tax breaks available for self-employed people. It’s not enough just to sign up for a health insurance plan, you have to make sure that it fits with your current financial situation and works well with your overall tax scenario.

That said, here are some of the ways you can save money on your taxes while still maintaining health insurance coverage:

Use a Flexible Spending Account (FSA). This is an account that will allow you to set aside pre-tax dollars each year so they can be used toward medical expenses as they arise throughout the year.

The FSA has several restrictions based on annual income and family size that prevent many Americans from using them effectively; however, if these restrictions don’t apply in your case (or if they do).

Then this could be an effective way for saving money on healthcare costs by offsetting them against taxes owed at the end of the year.

Buy high deductible plans or catastrophic plans rather than comprehensive plans (and keep in mind what “high” means when comparing these types of policies).

If possible, try not to buy a plan with low deductibles because those will cost more out-of-pocket after paying premiums each month for 12 months straight!

Are you a freelancer wondering about the available health insurance options? Discover various health insurance choices for freelancers in our comprehensive guide: What Health Insurance Options Are Available to Freelancers?

Get A Roommate Or Partner To Share Some Of Your Expenses

You may also feel that you need a roommate or partner to help with expenses. If so, talk to friends and family for recommendations. It’s best if your roommate is a responsible adult who can contribute his or her fair share of the bills and household chores.

You can also use websites like Craigslist or EasyRoommate to find someone who might be interested in sharing your home with you.

Everyone in the household must agree on how much each person will pay toward rent, utilities, and other shared costs (like food).

Cut Down On Unnecessary Expenses And Rework Your Budget

You need to cut down on unnecessary expenses and rework your budget. Many self-employed people make the mistake of thinking healthcare is free, but it’s not.

If your current income isn’t enough to cover the cost of healthcare and other necessities, you’ll need to find ways to make more money. Here are some suggestions:

Find ways to make money that doesn’t cost you anything. This can include starting a side hustle.

Accept freelance gigs from clients in exchange for cash or bartering services with other businesses or individuals who have skills that complement yours (e.g., graphic designer offering design services for a massage therapist).

Accept that some expenses are unavoidable such as gas for traveling between client sites and work within those parameters when calculating how much money you’ll be earning after taxes and expenses each month/week/day/etcetera.

Make Sure You Get Healthcare From A Reputable Company/Person

It’s important to make sure that the company you choose is reputable and trustworthy. Before you make your final decision, follow these steps:

Check out the company’s background. Do a Google search on the name of their business and look for results that indicate whether they have any complaints filed against them by customers or clients.

Also, check with the Better Business Bureau (BBB) to see if there are any complaints against them on file.

Ask for references from people who have used their services before; this will give you an idea of what kind of experience other people had with them in terms of customer service, price, and quality of care provided.

Check out their website what does it say about them? Are there reviews from past customers? Does it seem legitimate?

If it looks like something has been copied off another website without modification or if there aren’t many pictures or details about policies offered by this particular entity then perhaps reconsider using that particular health insurance provider instead!

Buying health insurance for the first time can be overwhelming. Our article on 13 Things to Consider When Buying Health Insurance for the First Time offers essential factors to keep in mind to ensure you make the right decision for your healthcare needs.

Ask Questions And Read The Fine Print Before You Sign Up For Anything

Asking questions and reading the fine print is your best defense against being surprised by any surprises. It’s also a good idea to ask your doctor, pharmacist, or another healthcare provider what health insurance plans they accept.

They may be able to recommend a specific plan that you should consider when choosing a health insurance company.

Here are some examples of questions you can ask:

Is this provider in-network? (In-network providers are those that are covered by your chosen plan.)
What types of services does this provider offer? (Is the clinic’s focus on urgent care or long-term care? Do they offer specialty services like physical therapy?)
How much do you charge per visit? (This can vary depending on whether you have an established relationship with them and how much time they spend with each patient).

Get Your Priorities Straight

When you’re self-employed, it’s important to know what is most important to you. Your priorities will help you make decisions about your health insurance, savings, and other areas of your life.

Your health insurance should cover all the treatments that are essential to maintaining your quality of life and that means not just physical ailments but also mental ones.

If you think back on some of the worst times in your life, chances are they were accompanied by some kind of health issue or injury that was difficult to handle mentally as well as physically (for instance: surgery).

A good health insurance plan should cover all treatments related to these issues even if they happen outside of normal office hours or aren’t considered standard practice by doctors today (for instance: psychological counseling).

You may also want additional coverage for prescription medications and follow-up treatment for surgeries or medical procedures that aren’t covered by traditional private plans (for instance: physical therapy and pain management).

Ask For Help When You Need It

If you’re new to self-employment and not sure where to start, ask for help. You can ask for help from your family and friends who have been in the same or similar situations before. You can also get advice from an accountant or attorney that specializes in small business.

You might even find someone who has worked at a large company and is now running his or her own business.

Your doctor may also be able to give insight into what coverage options are available for small businesses, or if there are special programs that might work better than others in your situation.

Finally, even if your boss doesn’t offer insurance options through the company they manage, they may know of other places where employees can get affordable health care (and how much it will cost).

Freelancers often face the challenge of agency fatigue. Discover effective strategies to avoid burnout and maintain a healthy work-life balance in our insightful article: How Freelancers Can and Should Avoid Agency Fatigue.

Diversify Your Income Streams

If you’re self-employed, it might be more difficult to find health insurance. Some insurance companies will only offer coverage to people with a steady source of income.

But even if you don’t have an employer paying you every month, there are ways to make sure your income is reliable and consistent.

The best thing you can do is diversify your business model so that you’re not putting all your eggs in one basket.

For example, if your primary revenue comes from coaching or consulting with clients one-on-one over the phone or Skype, consider adding additional streams like ebooks or workshops as well.

If you write articles for magazines and blogs on the side, try getting paid for speaking at events or publishing books about a topic related to what interests them even if it doesn’t relate directly back to helping people improve their mental wellbeing!

In addition to having multiple sources of income coming in at regular intervals (and from different sources), consider how much money each stream generates per month so they add up together into something substantial enough that would qualify as “steady” earnings.”

If you aspire to become a freelance writer in the healthcare industry, our guide on How to Become a Freelance Writer in the Healthcare Industry provides valuable tips and insights to help you navigate this specialized field and build a successful writing career.

Conclusion

It’s important to remember that no matter how frustrating it is, finding health insurance as a self-employed person is worth it. It’s worth wading through the red tape, and it’s worth taking the time to get educated about your options.

You are responsible for your health, and you owe yourself peace of mind in case something were to happen. We hope this article has helped get you off on the right foot towards finding an affordable health insurance plan.

FAQs

Here are some frequently asked questions about health insurance for self-employed individuals:

What are the available health insurance options for self-employed people?

Self-employed individuals have various health insurance options to consider, such as individual health plans, Health Savings Accounts (HSAs), or joining a spouse’s employer-sponsored plan if applicable.

How can I find affordable health insurance as a self-employed person?

To find affordable health insurance, it’s recommended to compare plans from different providers, consider joining professional associations or organizations that offer group coverage, and explore government-run health insurance marketplaces.

Can I deduct health insurance premiums as a self-employed individual?

Yes, self-employed individuals may be eligible to deduct health insurance premiums as a business expense. It’s essential to consult with a tax professional or accountant to understand the specific rules and requirements.

What is the best health insurance option for self-employed individuals?

The best health insurance option for self-employed individuals depends on various factors such as budget, coverage needs, and personal circumstances. It’s advisable to research and compare different plans to find the one that meets your specific requirements.

How do I qualify for subsidies or tax credits for health insurance as a self-employed person?

Depending on your income and other factors, you may qualify for subsidies or tax credits to help lower the cost of health insurance premiums. Checking your eligibility and applying through government health insurance marketplaces is a crucial step in accessing these financial benefits.

Costantine Edward

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.

How To Find Health Insurance When You’re Self Employed