Finding affordable healthcare as a self-employed individual is easier than you think. It’s critical to keep yourself insured no matter what side hustle, business venture, or entrepreneurial project you are engaged in. With the right strategy, you can ease the financial burden of medical expenses and protect your freedom to focus on the work that matters most to you.
Why Is Health Insurance Different for Self-Employed People?
When you work for yourself, purchasing health insurance is not the same as getting insurance via a traditional employer. As an employee, your company will usually cover most of the premiums on the coverage. However, if you’re on your own, chances are you’ll have to pay the majority of that cost personally. Developing an effective healthcare strategy to protect yourself financially isn’t easy since health insurance costs are higher, but thankfully, they are tax-deductible, which helps reduce your taxable income.
Where to Get Self-employed Health Insurance?
Thanks to the ACA (Affordable Care Act), self-employed individuals are able to get covered through a government health plan.
Medicaid is a government-sponsored program that has been created to provide assistance to those who do not have any insurance because of their low-income level.
Private Health Insurance Plan
Private health insurance plans are designed exclusively for self-employed individuals and offer comprehensive coverage and favorable benefits. It’s important to realize that these plans can be rather pricey, and unlike Marketplace coverage, you cannot qualify for a premium tax credit if your household income is low.
COBRA (Consolidated Omnibus Budget Reconciliation Act)
COBRA, which you can use while your group health plan is in effect, allows you to keep your employer-sponsored plan for 18–36 months after leaving a full-time job (at a higher rate as employers typically stop paying part of the cost).
Through Your Parents or Spouse
As a self-employed worker, you may also be able to get health insurance through your spouse’s or parents’ employer. A lot of insurance plans allow family members to get added; however, the provider may cover only a small portion of your premium since you are not an employee.
What If I Can’t Afford Health Insurance as a Self-Employed Individual?
Health insurance is a crucial purchase that needs to be sorted in advance, although the requirement to have health insurance isn’t legal anymore, so you are not at risk of getting penalized for not having it. Run through the pros and cons of getting health insurance when you’re running on a tight budget. If you believe that your health is mostly okay and you don’t see your doctor too often, having insurance might not be worth the money as it could cost hundreds every month. But if you have chronic illnesses or feel like something might go wrong at any moment, insurance is more than just a bonus; it could be life-saving.
Shopping for health insurance on your own doesn’t have to be difficult. If you’re new to self-employment and looking for health insurance for the first time, know that you have several options. We at Lou Aggetta Insurance Inc. are here to help you by finding the best policy for your specific needs. Contact us for more information.