How to Get Health Insurance If You’re Self Employed

For many self-employed individuals, one of the most daunting tasks is securing affordable health insurance. Without the benefit of employer-provided coverage, the costs can quickly become burdensome. Recognizing the importance of health coverage, you may feel pressured to find an affordable solution. Fortunately, despite the challenges, there are options available for self-employed individuals seeking affordable health insurance. Here are some key factors to consider as you navigate this process.

An accessible option for obtaining health coverage is to explore coverage through your spouse’s employment. While you may be self-employed, if your spouse is employed by a company that offers health benefits, you may be eligible to be covered under their plan. Take the time to review the benefits offered by your spouse’s employer and assess whether there is a suitable and affordable option available. Leveraging your spouse’s coverage can provide you with peace of mind regarding your health insurance needs.

You have the option to explore online platforms for health insurance quotes. Utilizing popular aggregate websites such as HealthInsurance.org can provide access to group plans tailored for self-employed individuals and families. I personally found a suitable insurance plan through such a platform a few years back, and it was a positive experience. Surprisingly, my premiums were lower compared to some of my friends who have employer-sponsored health insurance.

Additionally, consider reaching out to friends and colleagues in your industry who are also self-employed. Many self-employed individuals belong to professional groups that offer group insurance plans. For example, I have a friend who is a realtor, and he obtains his healthcare coverage through a group plan established by the realtor association. Another friend works in the entertainment industry as a sound director, and despite being self-employed, he and his wife are covered under his comprehensive plan, which offers better benefits than his wife’s employer-sponsored plan.

Remember, group rates aren’t exclusive to traditional employment setups, so explore all available options to find the best coverage for your needs.

Christians should earnestly contemplate giving healthcare ministries a try. Why? Because currently, we pay a monthly premium of approximately $250 instead of the $800 we were paying before. These ministries operate on a cost-sharing model, and while they emphasize that they are not insurance, they function similarly in practice. You submit your bills to them, and they cover the costs using the monthly premiums contributed by all members. There are several options available, each with slightly different rules, but they consistently offer more affordable alternatives compared to traditional insurance options available in the marketplace today.

Lastly, there are the healthcare exchanges established under the Affordable Care Act (ACA), commonly known as Obamacare. A convenient starting point to explore these options is the federal website Healthcare.gov. Alternatively, you can search for healthcare options in your state to access your state’s specific exchange.

Here’s how it typically works: you select coverage tiers (Bronze, Silver, Gold, or Platinum), where higher premiums generally translate to more extensive coverage. Then, you may qualify for a subsidy in the form of a premium tax credit from the federal government, based on factors such as your household size and income. Some states may offer additional subsidies, and income thresholds can vary.

In essence, the more you earn, the higher your monthly premiums are likely to be, even after factoring in potential subsidies.

To reduce healthcare costs as a self-employed individual earning good money, consider opting for a higher deductible health insurance plan. This can involve choosing a high deductible plan that mainly covers catastrophic events, or selecting a “regular” plan with a higher deductible. On healthcare exchanges, bronze plans typically have lower monthly premiums compared to platinum plans. By doing this, you effectively self-insure a portion of the cost.

Additionally, you can complement your health insurance with a Health Savings Account (HSA). HSAs are excellent tools for saving up for medical expenses, and the funds remain yours until used for healthcare costs.

I personally use an HSA and find it very beneficial. I pay lower premiums to the insurance company and retain more of my own money. Contributions to HSAs are tax-deductible, providing further financial advantages for my family. Moreover, the earnings in the account grow tax-free, as long as they are used for qualified healthcare expenses. Plus, if the funds aren’t used for such costs, the account operates similarly to a Traditional IRA.

Take the time to assess your options, understanding that what works best can vary greatly from person to person. A high-deductible health plan may not suit a large family with extensive healthcare requirements, whereas it could be inefficient for a self-employed individual with minimal healthcare needs to opt for a “regular” plan. Analyze your specific needs and then explore the available choices. With some diligence, there’s a good chance you’ll discover affordable health insurance that meets your requirements.