Being your own boss has its perks โ setting your own schedule, pursuing your passions, and, of course, working in your PJs if that’s what floats your boat. However, as great as self-employment is, it can also come with some challenges. One of the biggest obstacles many self-employed individuals face is finding affordable health insurance.
When you’re employed by a company, you’re often eligible for group health insurance, which can be a huge benefit. However, when you’re self-employed, you’re on your own, and finding a suitable plan can be overwhelming.
Here’s the good news: there are plenty of options out there for self-employed individuals looking for health insurance. You just have to know where to look and what to look for.
Get familiar with the different types of plans
You’re likely aware that there are different types of health insurance plans out there, but did you know that some plans are better suited for self-employed individuals than others?
For example, individual health insurance plans are a great option for self-employed individuals who don’t have any employees. These plans are typically more affordable than group plans, and you can customize them to fit your specific needs.
Another option is professional associations or membership-based organizations. These organizations, like the National Association for the Self-Employed or the Freelancers Union, offer group insurance plans to their members. These plans can be a great option if you’re self-employed and don’t have access to a traditional group plan.
Lastly, there’s the Affordable Care Act (ACA) marketplace. The ACA, also known as Obamacare, provides a platform for individuals to purchase health insurance. Self-employed individuals can use the marketplace to compare plans and prices, just like they would with individual insurance.
Consider your budget and needs
Choosing the right health insurance plan is all about finding one that fits your budget and meets your needs. As a self-employed individual, you’ll want to consider a few things when making your decision:
How much can you afford to spend on premiums each month? Consider not just the upfront costs, but also any deductibles, copays, or other out-of-pocket expenses.
What kind of coverage do you need? If you have ongoing health issues or require regular medical care, you’ll want to choose a plan with comprehensive coverage. On the other hand, if you’re relatively healthy, you may be able to opt for a plan with less coverage and lower premiums.
What about additional benefits? Some plans offer additional perks, like dental or vision coverage, that can be a nice bonus.
Take advantage of tax benefits
One of the best things about being self-employed is the tax benefits that come with it. When it comes to health insurance, there are a few ways you can save even more.
Self-employed individuals can deduct the cost of their health insurance premiums on their tax return. This can be a huge help come tax season, especially if you’re paying a lot for premiums.
Additionally, you may be able to establish a Health Savings Account (HSA) or a Medical Savings Account (MSA). These accounts allow you to set aside pre-tax dollars for medical expenses, which can be a big help in case of an unexpected medical bill.
Get professional help if you need it
Finding the right health insurance plan can be a challenge, especially if you’re not familiar with all the options. That’s where a licensed insurance broker or agent comes in. These professionals have the expertise to help you navigate the health insurance market and find a plan that’s right for you.
In addition, they’ll be able to answer any questions you may have, address any concerns, and help you with the application process. And the best part? Their services are usually free, as they get paid by the insurance companies.
