What To Do If You've Got No Health Insurance While Being A Freelancer

Freelancing is a great way to make money, but one of the downsides of this type of work is that you usually don’t have an employer to provide benefits. That’s why many freelancers find themselves dealing with the unpleasant task of getting health insurance on their own.

While it can seem daunting, there are options out there for the independent-minded among us who want to stay healthy and keep costs low at the same time!

The first option for people without employer-based health insurance is COBRA (Consolidated Omnibus Budget Reconciliation Act).

This law lets people continue participating in their previous employer’s group coverage if they’ve lost their jobs or left voluntarily within 18 months from when qualifying events occurred (like divorce).

health insurance for self-employed freelancers – YouTube

Takeaways
1. Research affordable health insurance options.
2. Consider joining professional associations for group insurance benefits.
3. Explore government-sponsored healthcare programs like Medicaid or CHIP.
4. Save money for potential medical expenses by setting up a health savings account (HSA).
5. Take preventive measures to maintain good health and minimize the need for medical intervention.
6. Look into alternative options such as healthcare sharing ministries or short-term health insurance plans.
7. Prioritize financial stability and consider budgeting for emergency medical situations.
8. Seek advice from insurance brokers or financial professionals specializing in freelance insurance solutions.
9. Stay informed about changes in health insurance laws and regulations that may affect freelancers.
10. Evaluate and adjust your insurance needs regularly as your freelance career evolves.

Table of Contents

1. Get A Health Savings Account

If you’re self-employed, one of the best ways to save money on your health insurance costs is with a Health Savings Account.

An HSA is a tax-advantaged savings account that can be used to pay for certain medical expenses, including health insurance premiums, deductibles and copays and it’s open to anyone who has health coverage through their employer or via Medicare.

The money in your HSA isn’t taxed going in or coming out, as long as it’s used on qualified healthcare expenses.

When you sign up for an HSA (which doesn’t require any qualifying event), you’ll receive a debit card linked directly to your account.

This can make managing your healthcare spending easier than paying out of pocket; rather than having to track receipts throughout the year and potentially lose them before filing taxes at the end of April (or whenever), everything gets automatically paid through this card instead!

Plus this makes reconciling accounts after filing taxes even easier because all these purchases are already accounted for when calculating out-of-pocket costs from other sources such as co-pays/deductibles etc…

Health insurance is essential for freelancers to protect their well-being and financial stability. Don’t overlook the importance of getting health insurance while freelancing, as it provides a safety net in case of unexpected medical expenses.

2. Consider COBRA

The second option is to consider COBRA, which is a federal law that gives you the right to continue your group health coverage if you lose your job, even if you can’t afford to pay the premiums yourself.

You’ll be responsible for paying the premiums plus up to 2% of the premium as administrative fees.

When you’re looking at COBRA options, it’s important to make sure that you’re aware of any restrictions on who is eligible and when they kick in.

For example, some plans may not allow people over 55 years old to participate; others may not allow part-time employees or people who were laid off due to “gross misconduct” (i.e., stealing company property) from participating in COBRA;

COBRA plans often charge a higher rate than group plans because they are considered individually owned policies rather than group policies with lower rates; even if a plan offers employer-paid benefits outside of COBRA coverage periods (such as dental).

Those benefits might only be available while working full time at an employer where such coverage is offered so this could mean no dental insurance while freelancing!

If you decide that going back into traditional employment isn’t for you but need health care coverage anyway, consider these points before enrolling in COBRA:

3. Try Freelancers Union

One of the members-only benefits of the Freelancers Union is health insurance. They have a variety of plans to choose from, including HMO, PPO, and indemnity options. The plans also include dental coverage and vision care.

These plans are available to freelancers who have been working freelance full time for at least six months within the last year and have submitted at least 25 invoices within that same period.

In addition to health insurance benefits, members also receive discounts on products like car rental agencies and hotels.

The Freelancers Union has over 3500 doctors in its network across all of its different types of plans which can be very helpful if you’re looking for a specialist or other healthcare provider who isn’t part of your current plan’s network (or if they don’t provide access to specialists).

Freelancing offers flexibility, and it can be done remotely or even through phone communication. Explore the possibilities of freelancing on the phone or online to expand your work opportunities and reach a wider client base.

4. Don’t Let It Expire!

The first step is to make sure you don’t let your health insurance lapse. If you’re in a position where that means choosing between paying for dental work and getting a new pair of shoes, I understand but don’t do it! Don’t let your health insurance lapse if you can help it.

And if you can afford it, don’t let your health insurance lapse!

It’s all too easy to fall into a state of complacency when working as a freelancer; we get so focused on our day-to-day projects and clients that we forget about financial responsibilities like this one.

But remember: even if the date has passed and there’s no turning back now (which there isn’t), at least now you know what steps are required to get covered again later down the road

5. Get On Your Spouse’s Plan If You’re Eligible

If you’re a freelancer and don’t have health insurance, it’s worth checking out if you can get on your spouse’s plan.

To be eligible:

You must be married to someone who has coverage through an employer.

You must be able to prove that you are covered under their plans, such as by having proof of payment for premiums or medical bills from their insurer. This can also include proof of coverage through another program like Medicare or Medicaid.

If you’re married but not covered under your spouse’s plan for some reason (like being too old), there may still be other options available depending on where you live and what kind of coverage they get from their employer.

You must be between 26-64 years old. You need to provide proof that you are a dependent of your spouse (this can include tax documents).

6. Check With Your Parents Whether You Can Get On Their Plan

You may be able to get health insurance if you have a parent who has it. The good news is that most plans will allow you to stay on your parent’s plan until you turn 26, so even if they don’t have health insurance, this is the first place to check.

You may want to consider asking them whether they would be willing to add you to their plan. If they do and if they offer any kind of discount for having more than one person on there (which many do), then that could save some money in the long run.

This is especially true if your parents are already paying for other things like life insurance or disability coverage things which freelancers need as well!

If this doesn’t work out, then unfortunately there aren’t a lot of options left for getting affordable health insurance without having a regular job (or at least part-time).

You can look into COBRA coverage or Medishare or similar programs but most people won’t qualify for those unless they worked for at least 18 months consistently before leaving their jobs due to downsizing etc.

It’s crucial to have a clear understanding of what freelancing truly entails. Check out our comprehensive guide on what freelancing is and isn’t to gain insights into the unique aspects, challenges, and benefits of the freelance lifestyle.

7. Consider The Cost Of Care Vs A Penalty If You Don’t Have Health Insurance

If you still have no health insurance and are considering going without it, it’s important to consider how much the penalty for not having health insurance could cost you.

The Affordable Care Act requires that Americans who do not have a qualifying plan or meet an exemption pay a penalty when filing their taxes.

In 2016, the individual shared responsibility provision requires that each adult covered by a qualified health plan (QHP) maintain minimum essential coverage throughout the year or make an individual shared responsibility payment (SRP).

If you don’t maintain coverage, but find yourself in need of medical care during the year, here’s what can happen:

You will owe money on your taxes (the SRP amount increases each year).

Your credit score may take a hit due to late payments or missed bills/bills sent to collections.

You’ll have difficulty getting new loans because lenders want borrowers who can afford to pay off loans they already have.

8. Be Proactive About Your Health And Avoid Going To The Hospital For Non-Emergency Reasons

You don’t want to be in the hospital for any reason, ever. Not for a surgery or an emergency, not even for a routine checkup. Even if you’ve got good health insurance and your doctor’s appointment is covered by it.

Why? Because hospitals are expensive, time-consuming, and stressful. Furthermore, many procedures can be done at home or a clinic with less hassle and expense than going to the hospital would require.

If there’s one thing freelancers have learned about their businesses over the years, it’s that doing everything yourself means saving money and this includes medical care!

So if you’re feeling poorly or worried about something going wrong with your health but don’t want to go through all the rigamarole of making appointments and paying copays just yet (or ever), here are some tips:

9. Avoid Going Unless Absolutely Necessary To The Doctor And/Or Hospital, Even If You Do Have Health Insurance Due To High Co-Pays And Co-Insurance Rates

The idea of having to pay a large sum after a visit isn’t fun, but it’s better than not having any coverage at all. Plus doctors are generally willing to work with patients who are currently paying out of pocket or who don’t have insurance.

You can always ask for generic versions of prescriptions or over-the-counter medications instead of brand names (if those exist), as well as get tests were done at different facilities that may offer more reasonable prices for certain procedures.

10. Compare All Of Your Options Carefully Before Making A Decision On What Type Of Coverage To Get

The last thing you want to do is go without health insurance. If you don’t have coverage or can’t afford it, you run the risk of being refused service or paying more than other people for care.

Look at all your options carefully before deciding on what type of coverage to get. You may be surprised at how much cheaper some plans are than others.

If one plan costs more but has better benefits, it may still be worth paying more if it will help save money in taxes and lower expenses down the road by filling services that are out of pocket now (like dental work).

Discover the future of work and the growing trend of freelancing. Our article on Freelancing: The Future of Work explores the benefits and opportunities that come with embracing this flexible and independent career path.

11. Do Some Research Into High Deductible Plans Versus Lower Deductible Plans

As a freelancer, you may be able to save money on health insurance by choosing a high deductible plan.

High deductible plans require you to pay more out of pocket for medical expenses before your coverage kicks in. However, they usually lower monthly premiums and deductibles than low deductible plans do.

There are pros and cons of both types of health insurance: high deductible vs low deductible.

A high-deductible plan will have a lower monthly premium but higher out-of-pocket costs; however, if you don’t go to the doctor often (or don’t get sick often), this may not be an issue for you you’ll just pay less per month for your health insurance premiums!

12. Know What Types Of Coverage Are Offered By The Various Companies

Know what types of coverage are offered by the various companies. Hopefully, you’ve already done some research into health insurance providers, but if not, it’s a good idea to know what types of coverage they offer.

This will make it easier to compare apples with apples when looking at quotes from different insurers.

Consider getting short-term plans or COBRA if you’re between jobs and need temporary insurance coverage until you find something permanent.

There are many options available in this realm from plans that cover just medical expenses (not including prescriptions) to more comprehensive policies that include prescription drugs and other services as well.

So be sure to do your homework before settling on one particular plan or provider.

Look into group plans offered through organizations like Freelancers Union or Professional People for the Public Interest (PPIA).

These organizations offer memberships that provide discounted rates on health insurance premiums due in part because they negotiate with carriers on behalf of members who purchase their products through PPIA/FPPIA membership packages;

However, there may also be times when these organizations will accept applicants without any other affiliation requirements besides having been self-employed for at least two years prior to their enrollment date into such programs.

13. Know What Type Of Coverage Is Available Through An Employer Or Organization Like Freelancers Union

Know what type of coverage is available through an employer or organization like Freelancers Union, so that you can compare apples with apples when looking at quotes from different insurers.

In some cases, a company may offer you health insurance as part of your employment package. If this is the case for you, then go ahead and take it! You’ll have to pay a percentage of the premium out of pocket, but at least it’s something (and often more than nothing).

If there’s not enough room in your budget to be able to afford both your premiums and retirement contributions while still affording food and shelter, then consider spreading them out over two or three years instead of all at once.

You might also want to talk with friends/family members who work for companies that offer similar benefits packages if they’re willing (and if not legally obligated) to contribute toward covering those expenses on their end as well!

Don’t hesitate to create an Upwork account if you’re considering freelancing. Our article on why you shouldn’t hesitate to create an Upwork account now outlines the benefits of this popular freelancing platform and provides valuable tips for getting started and finding success in the freelance marketplace.

Conclusion

We hope this article helped you understand the ins and outs of freelance health insurance. It can be intimidating at first, but with a little research and determination, you’ll soon have a great health insurance plan that helps you keep your business healthy.

The best way to get started is by contacting one of the companies mentioned above and getting quotes from them. If you need more information, don’t hesitate to reach out to our team. We’d love to help!

FAQs

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

How important is health insurance for freelancers?

Health insurance is crucial for freelancers as it provides financial protection in case of unexpected medical expenses and ensures access to necessary healthcare services.

What options do freelancers have for obtaining health insurance?

Freelancers can explore various options such as individual health insurance plans, marketplace exchanges, professional associations, and spouse or partner coverage.

How can freelancers find affordable health insurance plans?

Freelancers can research and compare different insurance providers, consider high-deductible plans, explore health savings accounts (HSAs), and seek out subsidies or tax credits for which they may be eligible.

Can freelancers qualify for government-sponsored health insurance programs?

Yes, freelancers may be eligible for government-sponsored health insurance programs like Medicaid or the Children’s Health Insurance Program (CHIP) if they meet the income requirements.

Are there any alternatives to traditional health insurance for freelancers?

Freelancers can consider alternative options such as healthcare sharing ministries, short-term health insurance plans, or purchasing insurance through professional organizations or industry associations. However, it’s important to carefully review the coverage and limitations of these alternatives before making a decision.

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.

What To Do If You’ve Got No Health Insurance While Being A Freelancer