One of the biggest challenges faced by those that are self-employed is finding affordable health insurance. For some, not having that benefit from work can be a real budget killer. You know that health coverage should be a financial priority, so finding something affordable can be especially frustrating. The good news, though, is that you do have options when you are self-employed — and you don’t have to wait until state exchanges are set up as part of the recent health reform law. Here are some things to consider as you look for affordable health insurance as someone who is self-employed:
Your Spouse’s Insurance Coverage
You might be self-employed, but does your spouse still work for someone else? You might be able to get coverage through your spouse’s job in some cases. Go through your benefits options, and take the time to see if there is an affordable and viable option through your spouse’s work. If you can get coverage going that route, you might not to worry so much.
Group Insurance
Another option is to look online for health insurance quotes. If you go through this aggregate sites, like HealthInsurance.org, you can get access to group plans that lump you in with other self-employed people and families. I found the insurance I use through such a web site, and it was a good experience. In fact, my premium is lower than the premiums some of my working friends pay, even though they have health insurance plans from their jobs. Don’t assume that just because you don’t have a traditional job that you can’t take advantage of group rates.
High Deductible Health Plans
One of the best ways to cut your health care costs is to raise your deductible. You can choose a high deductible plan that focuses mostly on catastrophic coverage, or you can get a “regular” health insurance plan with a higher deductible. In either case, you can pair your health insurance plan with a Health Savings Account. These accounts are great ways to save up for health care costs. Plus, the money remains yours.
I just opened a HSA, and I love it. I pay less to the insurance company, and keep more of my own money. The contributions are tax-deductible, which also provides a financial benefit to my family. Plus, the earnings grow tax free as long as they money in the account is used for qualified health care costs. And, if you don’t use the money for those costs, the account operates under the same rules as a Traditional IRA.
Consider Your Options
Carefully consider your options. Realize that everyone will have options that work differently for them. A high-deductible health plan might not be the best option for a large family with a lot of health care needs. However, for a self-employed person with few health care costs, the “regular” plan might be a waste. Evaluate your needs, and then shop around. With a little looking, there is a reasonably good chance that you can find affordable health insurance.