Reasons Why You Should Get Health Insurance When Freelancing

If you’re a freelancer, you probably know all about the risks of having no health insurance. But do you know about the options for getting health insurance as a freelancer? And how easy it is to sign up for a plan once you’ve found one that works for your needs and budget?

In this article, we’ll explore the world of health insurance for freelancers, from how to shop around and what to look for in a plan to how to sign up and get started.

We’ll also discuss why it’s so important that freelancers have health coverage in the first place and debunk some common misconceptions about shopping for plans as a freelancer.

health insurance for self-employed freelancers | usa

Takeaways
Health insurance provides financial protection for freelancers in case of unexpected medical expenses.
Having health insurance as a freelancer ensures access to quality healthcare services and timely medical attention.
Health insurance offers peace of mind and reduces the financial burden associated with healthcare costs.
Health insurance can help freelancers maintain their overall well-being and productivity by addressing their healthcare needs.
It is important for freelancers to carefully evaluate different health insurance options and choose a plan that suits their specific needs and budget.

Table of Contents

You Are Ineligible For Your Parents’ Plans

If you’re under 26, or if you’re a full-time student, your parents may be able to get an insurance plan for you. Full-time students are often eligible for health insurance through their school or college check with the student services office to see what benefits are available.

If you’re over 26 but still considered dependent on your parents’ income tax returns (like most millennials), then this may also make it possible for them to purchase plans that cover their adult children.

The Affordable Care Act requires that all policies purchased through healthcare exchanges must include coverage of dependents up to age 26 so as long as your parents can afford the premiums, they should be able to do so without issue!

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Being Uninsured Is Risky And Expensive

You could be charged a penalty for being uninsured: The Affordable Care Act (ACA) requires most Americans to have health insurance. If you don’t have coverage, you might have to pay an annual fee of up to $695 per person or 2.5% of your household income, whichever is higher.

You could be denied care: Most doctors and hospitals won’t treat patients who aren’t insured with at least some type of insurance even if they’re willing and able to pay out-of-pocket for their medical expenses.

Your costs could go up: If you do get treated at a hospital or other health care facility that doesn’t accept your insurance plan.

The cost of your visit will likely be much higher than what’s covered by your plan and it could end up costing thousands more than if you’d had coverage in place in the first place!

You Cannot Always Predict The Future

No matter how hard you try, some things are just out of your control. Maybe a family member will get sick or injured, or maybe you’ll lose your job and need to turn to freelance work for income.

You may even be in an accident that affects your health. These are all things that could happen, but since they’re unpredictable, it’s best to be prepared for them.

Very Few People Qualify For Obamacare’s Hardship Exemption

The hardship exemption for the Affordable Care Act (ACA) allows workers to forego health insurance coverage in exchange for a tax credit. If you don’t have an affordable option through your employer, or if you’re self-employed, you may qualify for this exemption.

However, only specific individuals meet the requirements of this exemption:

You must have been uninsured for at least 90 days before applying for coverage through the marketplace and not be able to get coverage from another source (such as an employer). Individuals who simply chose not to purchase insurance are not eligible.

Your household income must be below 400% of the federal poverty line. For example, if two people live together and earn $50,000 combined annually ($25K each), they would not qualify because their household income is above 400%.

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You Can Be Charged A Penalty For Being Uninsured

The Affordable Care Act (ACA) requires that you have health insurance or be subject to penalties.

The penalties are based on income and are calculated as a percentage of your income. This means that the penalty can be different for each person, even if they have the same insurance plan.

The ACA states that in 2016, the penalty for being uninsured will be 2% of your taxable income or $695 per adult without coverage up to $2,085 for family coverage.

For example: If a single person has no dependents and makes $50,000 per year; he/she would pay $1,200 as a penalty ($50k x 2%, which equals $1k).

Your Small Business Qualifies As Self-Employed When It Comes To Health Insurance

If you’re self-employed, then you can buy health insurance on the open market. Many freelancers choose to do this because it allows them to save money and get better coverage than if they were going through COBRA or a group health plan through their former employer.

If you live in a state that has its health insurance exchange, then you may qualify for a tax credit if your income is under 400 percent of the federal poverty level.

If your small business qualifies as self-employed when it comes to health insurance, there are several options available:

Buy an individual policy directly from an insurer (or broker)
Buy an individual policy through a marketplace created by the Affordable Care Act (ACA)

Freelance Income Is Considered Earned Income

Freelancers are considered self-employed when it comes to health insurance. So if you don’t have coverage through your employer, you will need to purchase a plan on your own.

This can be tricky because the market is still relatively new and there aren’t many options for freelancers yet.

Freelancers are also considered self-employed when it comes time for taxes you’ll need to make sure that your income is properly calculated and reported in a way that matches up with how other people with W2s would report their earnings (i.e., not as an independent contractor or sole proprietor).

You might also want to consider using software like TurboTax or TaxAct so that you can save money on tax prep fees by doing them yourself!

Finally, if you’re planning on working into retirement age (and we hope that’s soon!), your savings account must have enough funds saved so they will last until then without running out early due to unexpected expenses like medical bills.

Being Insured Doesn’t Mean You’re Not A Freelancer

Many freelancers are self-employed. This means that they’re responsible for their taxes and insurance, which can be daunting. However, there are several options available to freelancers and self-employed people who want to get health insurance:

Through an employer’s group plan. If you’ve been working as an employee within the past 12 months, then chances are your business has offered some sort of group health plan as part of its benefits package.

You may also have access to this same benefit if you worked at another company during your previous employment period.

The nice thing about being insured through a group plan is that it’s usually much cheaper than other types of individual plans because everyone pays into the same fund and no one pays more than their share (unless requested).

As part of a small business owner’s policy (that is, not through any kind of group plan). Small businesses with fewer than 50 employees don’t have to offer any type of employee benefits under federal law;

However, they may choose to do so to attract qualified workers or help keep existing employees happy with their job security/benefits package and therefore less likely to leave when better opportunities come up elsewhere!

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Doctors Prefer Patients With Insurance

Doctors prefer patients with insurance because they know that their services will be compensated. That’s not to say that doctors won’t see uninsured patients, but they will likely provide them with a less thorough or rushed experience.

If you have health insurance, it’s also more likely that your doctor will prescribe medication to help treat your condition when treatments are covered by insurance, there’s less of an incentive for doctors to prescribe over-the-counter medications (which can sometimes be less effective).

It Can Be Hard To Find A Doctor Who Accepts No Insurance At All And Offers Competitive Rates

It can be hard to find a doctor who accepts no insurance at all and offers competitive rates. Doctors who accept no insurance at all are rare, and even if you find one that does, they may not offer the same quality of care as doctors who take insurance.

Additionally, many of these “no-insurance” doctors don’t accept Medicaid, so it’s important to make sure you qualify before signing up with them.

This is why having health insurance while freelancing is so important: no matter how long you’ve been working independently or under contract for a given client, it’s often difficult to predict what will happen next with your health care needs.

Having coverage helps ensure that those unexpected situations don’t put a strain on your finances in addition to everything else going on in your life (like finding another job).

Health Insurance Can Give You Some Peace Of Mind

If you’re a freelancer, health insurance is an important part of protecting yourself. You can’t predict what will happen to your health in the future.

If you get sick or injured and don’t have money saved up to pay for it, it could put huge stress on your finances. That’s why having insurance is so important: it helps keep things stable for you when times are tough.

By getting health insurance as a freelancer, you’ll be able to avoid financial ruin by avoiding debt from medical bills.

And give yourself peace of mind that even if something does go wrong with your body or mind (or both), there will be someone there to help take some of the pressure off financially

Uninsured People Pay Far More For Medical Costs Than Those With Health Insurance

You may have heard that the uninsured pay more for healthcare, but you might not know exactly why. It’s because they have no other option but to use emergency rooms as their primary care providers and thus have to pay higher out-of-pocket costs for basic services.

ERs are expensive, so people without insurance are forced to pay upfront for these visits and then again when their bills come due.

So what do these expenses mean? They can lead to financial issues such as medical debt, which leads many people without health insurance away from seeking preventative care or treatment at all if they think it will cost too much money upfront.

This means that the uninsured are less likely than those with coverage to be able to afford basic medical needs like dental work or prescriptions for chronic conditions like diabetes or asthma and that could lead them into bankruptcy if left untreated!

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Even If You Don’t Get Sick Often, You’ll Still Need To See Your Doctor Every Once In A While. That’s Why Having Health Insurance Is Important

If you’re freelancing and don’t have health insurance, the last thing you want to do is pay out-of-pocket for medical care. It’s much better to have an affordable plan that helps cover those costs so they don’t pile up on top of everything else that comes with running a business.

Health insurance can help you save money and avoid financial hardship, which could be especially important for people who are new at self-employment or otherwise struggling financially.

Health insurance can also prevent life-threatening situations from spiraling into something even more serious like debt or bankruptcy both of which are very expensive!

Health Coverage May Help Improve Your Finances In The Long Run

If you don’t purchase health insurance, it’s possible that you could end up with medical bills that are so large they can cause financial stress and affect your ability to pay other bills.

Health care isn’t cheap. If you get sick or injured, the costs can add up fast. A visit to the emergency room might cost several hundred dollars, and even if the hospital visit is brief (like a few hours), the bill will likely be more than $1,000 at least.

And that’s just one instance of care; if you’re relying on high-cost medications for ongoing treatment for something like chronic asthma or diabetes, it could end up costing tens of thousands of dollars over time.

Thankfully there are some options for people who don’t have health insurance:

For example: if you’re struggling financially because of medical debt but aren’t eligible for Medicaid (the government-run program).

Because your income is too high then there may be another way out called balance billing reduction programs which help pay down those debts by lowering their interest rates so they become less expensive over time.

If You’re A Freelancer And Have No Health Insurance, Look Into Policies That Are Right For You

The health insurance marketplace is open for business. As a freelancer, there are a few options that you can explore to get yourself covered.

For instance, if you don’t have health insurance and make less than $47,520 per year (or between $97,200 and $98,400 if you’re married), then you may be eligible for a tax credit to help cover the cost of premiums on the marketplace or Medicaid/CHIP coverage in your state.

Additionally, if you’re self-employed or own a small business and earn up to $59,400 individually ($117000 as part of a couple) per year in Iowa you could apply for coverage through the small business health options program (SHOP).

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Conclusion

As a freelancer, it is important to have health insurance. First of all, it will keep you covered in case of an accident or illness. Second, you never know when an emergency might occur and health insurance will help protect you and your family from financial hardship.

Lastly, your employer probably offers some kind of coverage through their group plan so it may be worth looking into if there’s one that fits your needs better than what they offer now.

The most important thing is to do your research before making any decisions about which policy works best for you!

FAQs

Here are some frequently asked questions about health insurance for freelancers:

What are the options for health insurance as a freelancer?

There are several options for health insurance as a freelancer, including private health insurance plans, government-sponsored programs like the Affordable Care Act (ACA), health sharing ministries, and prepaid health insurance plans.

How do I choose the right health insurance plan for my freelancing needs?

When choosing a health insurance plan as a freelancer, consider factors such as coverage options, cost, network of healthcare providers, prescription drug coverage, and flexibility. Assess your healthcare needs and compare different plans to find the one that best suits your requirements.

Can freelancers qualify for government-sponsored health insurance programs?

Yes, freelancers can qualify for government-sponsored health insurance programs like the Affordable Care Act (ACA) marketplace, where they can explore and enroll in health insurance plans that meet their needs. Eligibility and subsidy options may vary based on income and other factors.

What is the difference between individual health insurance and group health insurance?

Individual health insurance refers to coverage purchased by an individual for themselves and their family, while group health insurance typically refers to coverage provided by an employer or an organization for a group of individuals. Freelancers often opt for individual health insurance plans.

Are there any tax benefits or deductions available for health insurance expenses as a freelancer?

Yes, there may be tax benefits and deductions available for health insurance expenses as a freelancer. Depending on your country and tax laws, you may be able to deduct health insurance premiums as a business expense or qualify for specific tax credits related to healthcare coverage.

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.