Health Insurance When You're Self-Employed

Introduction

As a self-employed individual, it can be challenging to find affordable and comprehensive health insurance. With the rising costs of healthcare, it's essential to have coverage in case of an unexpected illness or injury. In this blog post, we'll explore the options available for self-employed individuals looking for health insurance.

Individual Health Insurance

Individual health insurance plans are available through private insurance companies. These plans offer a range of coverage options, including medical, dental, and vision. The cost of individual health insurance can vary depending on factors such as age, location, and health status. However, it's important to note that individual health insurance plans do not offer the same level of coverage as group plans.

Health Savings Account (HSA)

A Health Savings Account (HSA) is a tax-advantaged savings account that can be used to pay for medical expenses. Self-employed individuals can contribute pre-tax dollars to the account, which can be used to pay for qualified medical expenses. HSAs are often paired with high-deductible health plans (HDHPs), which have lower monthly premiums but require higher out-of-pocket expenses. The money in an HSA rolls over from year to year, making it a valuable tool for long-term healthcare planning.

Catastrophic Health Insurance

Catastrophic health insurance is a type of that provides coverage for major medical expenses. This type of insurance is designed to protect individuals from financial ruin in the event of a serious illness or injury. Catastrophic health insurance typically has lower monthly premiums but higher deductibles and out-of-pocket expenses. It's important to note that catastrophic health insurance does not cover routine medical expenses.

Short-Term Health Insurance

Short-term health insurance is designed to provide coverage for a limited period, usually between 30 and 364 days. This type of insurance is ideal for individuals who are between jobs or waiting for other coverage to begin. Short-term health insurance plans typically have lower monthly premiums but higher out-of-pocket expenses. It's important to note that short-term health insurance does not cover pre-existing conditions.

COBRA

COBRA is a federal law that allows individuals to continue their employer-sponsored health insurance coverage for a limited period after leaving their job. Self-employed individuals who were previously covered by an employer-sponsored health insurance plan may be eligible for COBRA coverage. However, it's important to note that COBRA coverage can be expensive, as the individual is responsible for paying the full cost of the insurance premium.

Conclusion

As a self-employed individual, it's important to have health insurance coverage in case of an unexpected illness or injury. There are several options available, including individual health insurance, Health Savings Accounts (HSAs), catastrophic health insurance, short-term health insurance, and COBRA. It's important to carefully consider each option and choose the one that best fits your needs and budget. Contact us to review all the options that you have available to you as a self-employed individual