How To Save Money On Health Insurance When You're Freelancing

When you’re self-employed, being successful (and staying that way) often depends on being able to make smart choices. One of the smartest decisions you can make is to pick a good health care plan.

After all, as someone with no employer footing your medical bills, it’s up to you to cover your own medical costs.

If you don’t have health insurance and are living with a chronic illness or a disability, it can be particularly difficult to save money on health care without putting yourself at risk for financial harm.

Fortunately for freelance and self-employed workers, there are a number of ways to save money on health insurance without compromising the quality of care.

No matter what stage you’re at in the process of applying for health insurance whether it’s before or after open enrollment there are steps you can take right now that will help reduce your overall healthcare costs next year. Here are some tips!

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Takeaways
1. Shop Around: Compare health insurance plans from different providers to find the most cost-effective options that meet your needs as a freelancer.
2. Consider High Deductible Plans: High deductible plans can offer lower monthly premiums, but be prepared for higher out-of-pocket expenses when seeking medical care. Weigh the pros and cons based on your health requirements.
3. Utilize Health Savings Accounts (HSAs): Take advantage of HSAs to save pre-tax money for medical expenses, reduce taxable income, and build a safety net for healthcare costs.
4. Join Freelancer Associations: Some freelancer associations offer group health insurance plans, which can often be more affordable than individual plans. Research and join such associations to access better coverage options.
5. Evaluate Telehealth Services: Utilize telehealth services whenever appropriate, as they may offer more affordable and convenient healthcare consultations compared to traditional in-person visits.
6. Review Your Coverage Regularly: As your freelancing career evolves, your health insurance needs may change. Periodically review your coverage to ensure it aligns with your current situation and provides adequate protection.
7. Negotiate Rates with Providers: When facing high medical bills, negotiate with healthcare providers for discounts or payment plans. Many providers are open to discussing payment options with patients.
8. Maintain a Healthy Lifestyle: Prioritize your health by adopting healthy habits, which can lead to fewer medical expenses in the long run. Regular exercise and a balanced diet can positively impact your overall well-being and finances.
9. Seek Professional Advice: Consult with insurance experts or financial advisors who specialize in freelancers’ needs to get personalized advice on the best health insurance choices for your situation.
10. Stay Informed About Healthcare Policies: Keep yourself updated on changes in healthcare policies and regulations to understand how they may affect your freelancing health insurance options. Stay proactive in finding the best solutions for your coverage.

Table of Contents

Find Out When You Can Apply

Before you can apply for health insurance, you’ll need to know when the open enrollment period is. It’s good to know the exact dates so that you can save yourself time and money.

The open enrollment period is the only time of year that people have access to new benefits through their employer or healthcare provider.

If they miss this opportunity, they may be stuck paying higher premiums to get coverage later on down the line (or if they’re lucky enough not to have preexisting conditions).

The open enrollment period lasts from November 1 through December 15 each year; however, some plans run slightly longer than others (eHealthInsurance reports that Aetna allows its members until January 31).

After this date passes without action taken by either party involved (you or your employer), there will likely be no way around paying higher premiums or having any kind of coverage at all!

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See If You Qualify For A Federal Subsidy

If you’re self-employed or working for a small business, the federal government may be able to help you pay for your health insurance.

The Affordable Care Act (ACA) created an option for low- and middle-income people who don’t have access to employer-sponsored health insurance: the tax credit marketplace.

The marketplace allows individuals to shop for and compare plans, which will then be used by the IRS to determine eligibility for subsidies at tax time.

To qualify for these subsidies, you must make between 100% and 400% of the federal poverty level (FPL).

If your income falls within this range and you do not receive coverage through a job, Medicare, or Medicaid but do not qualify for Medicaid expansion in your state because it hasn’t been expanded yet congratulations!

You’re eligible! If not you may still be eligible depending on how much money your household makes each year; consult with a professional tax preparer if needed

Shop Around

If you’re looking for the best deal, it’s time to shop around. Compare costs, coverage, and quality. Ask friends and family for recommendations.

Look for a plan that matches your needs if you’re in good health, perhaps a high-deductible option would be best; if not, choose a plan with lower premiums but higher out-of-pocket expenses if something happens.

You should also look into which plans to cover specific treatments or services (like chiropractic care) that aren’t typically covered by standard insurance plans (but might help improve your lifestyle).

And finally: Don’t forget about yourself! If you’re young and healthy now but know that pregnancy will likely come into play down the road, make sure to check out maternity options too!

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Use All The Resources Available To You

There are a lot of things you can do to make sure your health insurance is as affordable as possible. The first thing you should do is explore your options on the internet.

You should look at all of the different providers that offer health insurance, and find out more information about their plans so that you can learn what they have to offer.

There are a lot of companies that provide plans for freelancers who want to save money on their monthly premiums, but not all of them will work with freelancers in the same way.

Some providers may only be able to offer policies with high deductibles or limited coverage, while others will have better rates and more comprehensive policies available for people like us!

Understand The Different Types Of Plans

The first step to saving money on health insurance is understanding what you’re getting into. There are several different types of plans available, and they each have their pros and cons.

First, let’s talk about the most common plans: HMOs (Health Maintenance Organization), PPOs (Preferred Provider Organizations), POSs (Point of Service), and EPOs (Exclusive Provider Organizations).

These four types all have one thing in common: they require you to select a primary care physician who acts as your gatekeeper for medical services. You can’t see anyone else unless the doctor authorizes it. That’s why these are known as “gatekeeper” plans.

Depending on your situation, this may or may not be desirable but either way, it’s important to know what type of plan you’re signing up for before making any commitments!

The next type we’ll discuss is a bit different:

HSA plus HDHP combo plans will allow you to visit out-of-network providers without having to pay extra for doing so but only if they accept cash payments directly from patients instead of billing insurance companies directly after services are rendered!

As such these types provide great flexibility when choosing providers while still providing some coverage at an affordable rate (plus no monthly premiums!).

They also come with high deductibles which means lower premiums overall but higher out-of-pocket costs when something goes wrong–so make sure that works well with how often you visit doctors/have problems before signing up!”

Consider An HSA-Qualified High-Deductible Plan

If you’re generally healthy and don’t need many doctor visits, an HSA-qualified high-deductible plan could be a great choice for you.

These plans typically have lower premiums and higher deductibles, meaning that you can save money on your monthly premium but pay more out of pocket if something does happen.

If this sounds like the kind of plan that would work well for someone in their 20s or 30s who’s freelancing full time, keep reading!

Your health is your most valuable asset as a freelancer. Check out the 11 crucial reasons in our guide on Why, as a Freelancer, You Should Worry About Your Health to understand why investing in proper health insurance is a smart choice.

Look Into Short-Term Plans

Short-term plans can be a good option if you’re looking for the cheapest health insurance plan. These plans are cheaper because they don’t have to meet the same minimum coverage standards as ACA plans and other types of insurance.

They also aren’t as comprehensive, which means that they may not cover some things like maternity care and other services you might need from time to time.

Finally, short-term plans usually cost more than ACA plans because they have much higher out-of-pocket costs (up to $25,000) for services such as hospitalizations or surgery.

Short-term policies are not available to people with pre-existing conditions or those who have had a gap in coverage during their life if you fall into one of these categories then it’s best not to consider this option.

Try A New Insurance Marketplace For Freelancers And The Self-Employed

If you’re a freelancer or self-employed person, there’s a chance that your current health insurance doesn’t cover all of your needs. It’s likely to be more expensive than traditional employer-sponsored plans.

Try looking into health insurance exchanges for the self-employed and freelancers. These exchanges provide individuals with an opportunity to compare plans from different providers and choose what works best for them based on their eligibility and cost factors.

Healthcare.gov is one such marketplace where people can search for individual health insurance coverage as well as compare different plans’ benefits.

Costs and provider networks before purchasing one that works best for them at a price they can afford without sacrificing quality or coverage options within the network (or outside of it).

Re-Evaluate Your Coverage Each Year During Open Enrollment Period

When you’re freelancing, you have to be especially careful about your health insurance. You don’t want to get hit with a large bill when something goes wrong, but it can be hard to predict if something will happen or not.

That’s why you must re-evaluate your coverage each year during the open enrollment period.

Look at the coverage needs of your family and compare them to what’s available in the marketplace.
Compare how much money you’ve been spending on health insurance so far this year and see if any ways could change for next year (e.g., more hours at work).

Go Directly To The Source, Not Through An Insurance Broker

Finding out if you qualify for a federal subsidy is as easy as calling the government’s toll-free number, 1-800-318-2596. The person who picks up will ask you a few questions about your income and family size.

They’ll also ask if anyone in your household has been uninsured for more than three months in the past year because only people who were previously uninsured are eligible for subsidies.

The next step is finding out how much money you can save on health insurance by going directly through the source instead of using an insurance broker.

You can do this online at Healthcare.gov or by calling their hotline at 1-800-318-2596 (though it’s worth noting that this method does not guarantee accuracy).

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Don’t Assume Your Spouse’s Policy Is Best For You

When you’re freelancing, your health insurance will be a big deal. You want to make sure that it’s right for you and the people in your family.

Here are some things to keep in mind when considering how to save money on health insurance when you’re freelance:

Don’t assume that because your spouse has a great policy (and they might), theirs is best suited for all of your needs. The fact is that they’re only one person and their policy may not be ideal for everyone else in the family.

Don’t assume that because their policy covers more than yours does (and it might), it’s enough coverage for everyone else in the family. There might be some gaps or holes that need to be filled before everyone is taken care of properly and those costs add up quickly!

Don’t assume that because their plan covers pets (or doesn’t cover them) (and sometimes both), this means something about how much they care about them as individuals or what kind of pet parents they are (or aren’t).

Go With A Lower Premium And Higher Deductible, Or Vice Versa

First, you’ll want to decide whether your budget should pay a higher premium with a lower deductible or vice versa. You can find this out by looking at different quotes from your insurer or getting in touch with an agent who can walk you through the process.

For example, let’s say you have a total income of $35,000 and decide that a $5,000 deductible will work perfectly for your budget.

But when it comes time to sign up for insurance via MN Health Connector (if you live in Minnesota), that coverage will cost $12/month with premiums ranging between $0–$1 per month as well as no deductible if that fits within your price range!

On the other hand, if you opt for some kind of high-deductible health plan (HDHP), like one where the deductible is set at $2K annually and monthly premiums are slightly higher ($30/month instead of $19/month).

Then going without health insurance may not be financially feasible anymore because even though HDHP plans tend to cost less than traditional HMOs over time due primarily their lower premiums and lack of copays or coinsurance requirements (which means less money spent out-of-pocket), they still require patients

Get Healthy Before Applying To Get Lower Rates; Then Keep Getting Healthier Over Time To Pay Even Less Later On

The first step to saving money on health insurance is to get healthy. Go get a physical at the doctor’s office, get a blood test and other tests (like a flu shot or cholesterol test), and get any body parts that need regular checks like dental exams and mammograms checked out.

If you can afford it, try to make yourself healthier over time by getting things like colonoscopies or prostate exams when you’re in your 50s; these will help save money on future medical expenses by preventing more serious problems from developing later on down the road.

Another option for making yourself healthier is going for a Pap smear every year instead of every three years and don’t forget about getting vaccinated against common diseases like measles!

Pick The Right Healthcare Provider

After you’ve found a plan you like, it’s time to pick the right healthcare provider. Several factors should be considered when picking a doctor:

Is this doctor in my network? If not, does that mean I have to pay more out-of-pocket? (Tip: Find out if your insurance will reimburse you for any uncovered costs.)

How far is this office from my house? If it’s too far away, will I be able to take advantage of their services without incurring additional costs?

How long does it take them to see new patients and how often do they book appointments? Will they need time off between seeing other patients so as not to “double book” themselves at any one given time?

And would that affect how quickly they can get back over here on short notice if something urgent happens?

What kind of experience do others who have seen them say about them online (on Yelp or Health Grades).

And what kind of reviews did they give them during those times when someone asked specifically about whether or not they’d recommend their services before committing themselves financially.

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Conclusion

There’s no one-size-fits-all solution to the problem of health insurance for freelancers. The key is to understand what you’re looking for, whether it be the cheapest option or a plan with low deductibles and copays.

You may have to go through a few different plans before finding one that fits your needs, but once you find it, you should compare prices and coverage every year during the open enrollment period to make sure it hasn’t changed.

It can seem daunting at first after all, who has time for this? but if you take care of yourself by eating well and exercising regularly now.

Then invest in good health insurance later on down the road when your premiums will probably be lower anyways because of the current rates available today (which are projected to rise).

FAQs

How can I find affordable health insurance as a freelancer?

Finding affordable health insurance as a freelancer can be challenging, but it’s possible. Consider exploring health insurance marketplaces, professional associations, or working with insurance brokers who specialize in freelance and self-employed coverage.

What factors should I consider when choosing a health insurance plan?

When choosing a health insurance plan, consider factors such as coverage options, monthly premiums, deductibles, co-pays, network of providers, and prescription drug coverage. Assess your specific health needs and budget to make an informed decision.

Can I deduct health insurance premiums from my taxes as a freelancer?

Yes, in many cases, freelancers can deduct health insurance premiums from their taxes as a self-employed business expense. Consult with a tax professional to understand the eligibility criteria and how to properly claim this deduction.

Is it possible to get comprehensive health coverage as a freelancer?

Yes, freelancers can access comprehensive health coverage options. Look for plans that provide adequate coverage for essential health services, preventive care, and major medical expenses, ensuring you have the protection you need.

How does the Affordable Care Act (ACA) affect freelancers’ health insurance options?

The Affordable Care Act (ACA) has expanded health insurance options for freelancers by offering access to the Health Insurance Marketplace. Freelancers can explore different plans and potentially qualify for subsidies based on their income levels. Understanding ACA provisions can help you make the most of available options.

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 Save Money On Health Insurance When You’re Freelancing