If you’re thinking of becoming a freelancer, you likely have many questions about how to succeed in your career. One question that concerns many writers and bloggers is how to navigate healthcare when they no longer have an employer-based plan.
While this can be a difficult transition, it’s not impossible to find good coverage on an individual plan. Here are 15 tips for finding the right health insurance for your freelance writing career:
| Takeaways |
|---|
| 1. Health insurance is crucial for freelancers’ financial security and well-being. |
| 2. Freelancers should explore affordable health coverage options tailored to their needs. |
| 3. Understanding the benefits and coverage of health insurance plans is essential. |
| 4. Managing health insurance while freelancing requires careful consideration and planning. |
| 5. Freelancers with pre-existing conditions may have specific options for obtaining coverage. |
| 6. Researching tax benefits associated with health insurance can be advantageous. |
| 7. Knowing how to choose the right health insurance plan can make a significant difference. |
| 8. Being proactive about healthcare and insurance can alleviate potential financial burdens. |
| 9. Upgrading health insurance as freelancers’ income grows may be necessary. |
| 10. Staying informed about changes in health insurance regulations is important for freelancers. |
1. You Don’t Have To Go Without Health Insurance
Health insurance is a form of insurance coverage for medical expenses.
In the United States, health insurance is provided by a variety of public and private organizations and can be funded either through government or employer contributions, or via direct payments by the insured (out-of-pocket).
Health care spending accounted for 17.9 percent of the GDP in 2015, although some estimates have placed it as high as 18%.[1] There are many different types of health plans available, with varying levels of coverage.
The Affordable Care Act, also known as Obamacare, requires all Americans to have health insurance coverage starting January 1st, 2014.[2][3][4]
If you don’t have your plan yet but do not qualify for subsidies under Medicaid or Medicare then you may be eligible to purchase an individual policy through your state’s exchange website (or directly from the insurer) at healthcare.gov.[5]
To make sure that our readers have access to quality information about their rights under this new law, we’ve compiled a list below which includes everything every freelance writer needs to know about health care reform.
Having health insurance as a freelancer is crucial for financial protection and peace of mind. Learn more about the importance of health insurance for freelancers and how it can save you from potential financial struggles.
2. Understand The Costs
Understanding the costs of your health insurance plan, including the deductible and co-insurance, can be confusing.
You may have heard of a high-deductible health plan (HDHP) or a low-deductible health plan (LDHP). But what do these terms mean for you?
A high deductible means that you will have to pay for most of your medical expenses before your insurance company starts paying. A low deductible means that you will not have to pay as much upfront, but eventually, your insurance will kick in.
The same goes for co-insurance: a high co-insurance means that there is a higher percentage of coverage on medical costs out of pocket by the insured person after they pay their deductible;
While low co-insurance refers to lower percentages paid out of pocket by an insured person after they meet their deductibles.
3. Timing Is Everything
It’s crucial to be aware of the exact dates your health insurance coverage will begin and end. If you don’t, then the consequences could be dire.
Many freelancers think that coverage will start on the first of the month after they purchase their policy. However, that’s not always true. Some providers require a waiting period before benefits kick in typically 30 days in many cases.
So if you sign up for your health insurance on July 4th (or any day in June), then it won’t take effect until August 1st or later!
The same principle applies to year-long policies: they typically have an open enrollment period during which you can make changes to any aspect of your plan without penalty;
However, once those deadlines pass (they’re usually between September 15th and December 7th), all changes must go through an underwriter who may approve or deny them as he sees fit…and at his convenience!
As such, it’s critically important that you familiarize yourself with these dates so that any necessary modifications can be made before they’re too late!
As a freelancer, finding affordable health coverage is essential. Explore our guide on how to get affordable health coverage as a freelancer to discover practical tips and options to ensure you have access to the healthcare you need.
4. Identify Your Coverage Needs And Preferences
You need to know what health coverage you want. Do you want to be covered for dental, vision, prescription drugs, and other medical expenses? Are the costs of your preferred options reasonable?
If you’re not sure what kind of plan is right for you or if there’s something specific that might cause problems (for example, if one of your family members has a pre-existing condition), talk to an independent insurance agent who can help steer you in the right direction.
When looking at plans from different providers, make sure that they offer benefits that meet your needs as well as fit within both your budget and work-life balance expectations.
For example: What happens if I get sick while away on a business trip or overnight client meeting? Is there coverage for out-of-state services like visits with specialists?
How much should I expect my monthly premium to be? What’s included in each plan (e.g., prescription drug coverage)? Is there an annual deductible before benefits kick in (and how high is it)? And so on…
5. Look For Subsidies, Incentives, And/Or Cost-Savings
The first four questions are the most important, but an additional five questions will help you further refine your options.
Look for Subsidies, Incentives, and/or Cost-Savings: If you’re eligible for a subsidy or incentive, it pays to know about it before enrolling in health insurance. The same goes if there’s a cost-saving attached to your policy (such as no copay on doctor visits).
Many times these incentives can reduce the premium or copay of your health plan. In addition to these types of perks, certain people may be able to get additional savings by getting their premiums reduced based on income level (this is called cost-sharing reduction).
Others may qualify for even more money back through premium tax credits that offset their monthly payments (this is called cost-sharing subsidies).
Embracing freelancing can help individuals overcome the fear of missing out on life’s experiences. Check out our article on how freelancing helps people reduce the fear of missing out to see how flexible work arrangements can positively impact your life.
6. Make Sure Doctors Are Included In Your Plan’s Network
As a freelancer, you’re likely to see a lot of different providers. But when it comes to health insurance, having access to your primary care doctor is essential.
They need to be in-network because they have the most knowledge of your medical history and can help navigate any issues that arise.
Many plans will allow out-of-network doctors at an additional cost; however if the plan has more than one provider in its network, it usually won’t make sense financially (unless your regular doctor happens to be outside that network).
7. Consider Not Going With A Deductible Plan
Deductible plans typically have a deductible of $1,000 or more. So, if you need to go to the doctor and your bill is $1,200 total (the healthcare provider’s cost), then you’ll pay the first $1,200 and your health insurance company will cover anything over that amount.
If your medical bills are less than $1,000 per year, then this type of plan can potentially save you money on healthcare costs because it doesn’t require you to pay copays (or coinsurance) every time you see a doctor or get medication.
Co-pay plans charge a flat dollar amount for each service provided by an in-network physician typically between $10-$30 per visit. Coinsurance plans require paying either a percentage share of covered services or a fixed dollar amount called coinsurance.
With these types of plans, even though there’s no annual deductible in place when you use these types of services within their network providers/hospitals/etc., they still may not be completely free since there are still some out-of-pocket expenses involved with them as well!
8. Make Sure You Can Afford Copayments And Co-insurance Payments
To understand how copayments and coinsurance work, it’s important to first understand the difference between a deductible and an out-of-pocket limit. Your deductible is the amount you have to pay before your health insurance plan starts paying for medical expenses.
Once your deductible has been met, then your health plan will start paying for medical bills.
For example, if your plan has a $500 deductible and you get charged $1,000 in copays, then you would owe $500 until your next payment due date (when you would likely have another bill with more copays).
Your out-of-pocket limit refers to how much money you can spend on covered health care services before reaching “catastrophic coverage,” which is also called an “out of pocket maximum.”
When this happens, all of your covered health care costs are 100% covered by your insurance company until the end of that year or until the next open enrollment period begins (whichever comes first).
This means that once catastrophic coverage kicks in for any given calendar year and unless otherwise indicated by their specific policy you’ll no longer need to worry about anything else related to those particular expenses incurred during that time frame!
Managing a freelance job on Upwork requires effective strategies and insights. Discover valuable lessons and tips in our article on what I’ve learned about managing an Upwork freelance job to excel in your freelancing career.
9. Pay Attention To The Maximum Amount A Plan Will Pay On Your Behalf Each Year
Any freelancer or blogger needs to know what their plan’s maximum amount is because it can help you manage your health-care spending and avoid going broke during expensive times.
There are two types of maximums to watch out for: the annual deductible and out-of-pocket limit.
Your deductible is the amount that you must pay out of pocket before insurance starts paying its share on services, procedures, or medications provided by a health care provider.
Your premium pays toward this deductible as do co-pays, co-insurance payments (if applicable), and any other cost-sharing provisions in your plan design such as deductibles for brand name drugs versus generic drugs (or tiered prescription drug benefit designs).
Once you’ve met your deductible goal each year through these payments from yourself and/or others who will be covered by your health insurance policy (e.g., family members), then coverage kicks in 100%!
The good news here is that some plans offer catastrophic coverage after meeting an out-of-pocket limit instead of a deductible;
This means people don’t have to worry about incurring exorbitant medical bills just because they had one large expense during an unfortunate accident or illness episode.”
10. Understand Your Prescription Drug Coverage Options And Costs
It’s important to understand your prescription drug coverage options and costs. Prescription drug coverage is a major part of many health insurance plans, but it can be confusing and complicated.
- What are prescription drug coverage options?
- What are prescription drug coverage costs?
Prescription drug coverage is an optional component of most health insurance plans.
It helps pay for the cost of prescribed medications for you or your family members who have been diagnosed with chronic conditions that require medication, such as diabetes or high blood pressure.
The amount you pay out-of-pocket depends on your plan’s deductible and copayments (amounts you pay each time you fill a prescription).
11. Understand The Plan Deductible And Out-Of-Pocket Limit And What They Mean For You In Practical Terms
The deductible is the amount that you have to pay for medical services before your health insurance starts paying for them. For example, if your plan has a deductible of $2,500 per year then you need to pay $2,500 out-of-pocket before your insurance kicks in and starts covering costs.
The out-of-pocket limit refers to how much you can spend on medical expenses before reaching this limit.
If something happens during the year that requires expensive treatment or many treatments (e.g., chemotherapy).
Then this will be taken care of by your health insurance company because it meets their criteria for meeting their cost-sharing requirements but only up until this point when they’ve paid 100% of all eligible expenses incurred during the year;
Anything above this threshold would need to be paid by yourself as well as any other household members who are covered under the same plan as you (if applicable).
In practical terms: Your goal should be to keep both numbers as low as possible without hurting quality/accessibility/availability of service;
So focus on finding plans where yearly premiums are reasonable but still have reasonable deductibles ($1–2K) with no co-pays unless necessary.
12. Consider An MSA (Medical Savings Account) To Save For Future Medical Expenses
If you’re looking for an easy way to save money for future medical expenses, consider an MSA (Medical Savings Account). An MSA is a tax-advantaged savings account that allows you to deposit up to $3,500 per person per year.
This can be used for qualified medical expenses and can even be used when your insurance doesn’t cover certain things. It’s similar in concept to a Flexible Spending Account (FSA) but with higher yearly limits and more flexibility when it comes time to use the money.
13. Ask About Discounts On Dental Or Vision Services And How To Get Them
Dental and vision coverage are often overlooked when shopping for health insurance, but they’re just as important as the other benefits.
Ask about discounts on dental or vision services and how to get them. Find out if the plan offers a discount on dental or vision services, and ask whether it covers any other dental or vision expenses like glasses or contacts (even if they aren’t covered by your plan).
You should also find out if the plan’s dental and vision coverage is good enough because you might want more than just basic coverage from your employer’s health insurance plan.
14. Find Out What Services Are Covered By The Premium You’re Paying (I . E ., Office Visits, Preventive Care, Prescriptions)
Once you’ve chosen a health insurance plan, it’s important to understand what services are covered by your premium.
This includes office visits, preventive care, prescriptions, and more. If you’re not sure whether or not your service will be covered by your plan.
Ask the company directly or reach out to a licensed agent who can help guide you through the process of finding out exactly how much an item or procedure will cost under their policy.
It’s also important to know what isn’t covered by your health insurance policy this way there won’t be any surprise charges when filing claims later on down the road!
Balancing a freelance job while working full-time can be challenging, but it is possible with the right approach. Learn how to manage both worlds with our comprehensive guide on how to work a freelance job while working full-time and make the most out of your freelance opportunities.
15. Create A Healthcare Budget Account
You’ll need a budget account to keep track of your health insurance payments. If you don’t create an account, you may end up with surprise expenses in the middle of the year.
You can also use this account to pay for your medical expenses and save for future medical expenses. When paying for deductibles and out-of-pocket limits, you should do so before the year ends so that they don’t come out of your tax return.
Conclusion
The world of healthcare can be confusing and even intimidating, especially when you are a freelancer who is responsible for your health insurance. But don’t let uncertainty, doubt, or fear keep you from taking care of yourself.
The task may seem daunting now, but as long as you bear in mind the information we’ve covered in this post and don’t give up hope that things will get better with time (because they will!), you’ll come out okay on the other side of this process.
And remember: if all else fails, there’s always Medicare!
Further Reading
Health Insurance for Freelance Writers: The Ultimate Guide: A comprehensive guide to understanding health insurance options tailored for freelance writers, providing essential information on coverage, benefits, and how to secure the right plan.
Yes, Freelancers Can Get Health Insurance: 12 Options: Explores 12 viable options for freelancers to obtain health insurance, offering valuable insights and resources to ensure freelancers have access to the healthcare they need.
Health Insurance Options for Freelance Writers: An insightful article highlighting various health insurance options specifically curated for freelance writers, assisting them in making informed decisions about their coverage.
FAQs
What are the key benefits of health insurance for freelance writers?
Health insurance for freelance writers provides essential medical coverage, including doctor visits, prescription medications, and hospitalization. It offers financial protection against unexpected healthcare expenses and ensures freelancers can prioritize their well-being without worries about high medical bills.
Can I find affordable health insurance as a freelance writer?
Yes, there are affordable health insurance options available for freelance writers. Many insurance providers offer plans tailored to the needs and budgets of freelancers. Exploring various options and comparing plans can help you find a suitable and cost-effective insurance solution.
What factors should I consider when choosing health insurance as a freelance writer?
When selecting health insurance, consider factors such as the level of coverage offered, monthly premiums, deductibles, co-pays, network of healthcare providers, and any additional benefits or perks included in the plan. Assess your specific healthcare needs and financial situation to make an informed choice.
How can I secure health insurance if I work as a freelancer and have a pre-existing medical condition?
Freelancers with pre-existing medical conditions can obtain health insurance through certain special enrollment periods, government-sponsored programs like Medicaid, or by joining a spouse’s employer-sponsored plan if applicable. It’s essential to research options and understand eligibility criteria to find suitable coverage.
Are there any tax benefits associated with health insurance for freelancers?
Yes, there are potential tax benefits for freelance writers who purchase health insurance. Depending on your country’s tax laws, health insurance premiums may be tax-deductible, reducing your taxable income and potentially lowering your overall tax liability. Consult a tax professional to understand the specific tax implications for your situation.
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.