Guide to Health Insurance for the Self-Employed
Health insurance is necessary so that we can afford decent healthcare which is quite expensive. There are many working individuals who are given health insurance by their employers. There are a lot of people who don’t have health insurance especially those who are self-employed. If you don’t have an employer who will provide health insurance for you, then you should try to get health insurance for yourself.
If you are self-employed looking for health insurance, you can find many options available for you. There are many private companies today selling government-vetted policies that offer different coverage amounts. This is made possible by the Affordable Care Act requiring states to run their own insurance marketplace or use the federal one.
There are many other reasonable health insurance options for the self-employed people who don’t want to use government-run exchanges.
Healthcare sharing ministries allows you to get insurance as a group. You and members of your group pay monthly premiums that go to the group insurance coverage. You can cut costs with this. But to ensure that you are getting the right coverage for you and your family you need to make a careful research on this.
Another great way to ensure healthcare is to open a Health Savings Account. You health funds will here be under your control. This is a high-deductible health plan. The money you put in this health savings accounts can be used for your medical expenses without tax or penalties if you meet qualifications. And the good thing about this is that it is your own money. So if you need money for non-medical expense, you can still take it out and use it, but with possible taxes and penalties.
If you want to get the best deal in insurance, you should compare insurance prices. Although health insurance is expensive, there are still ways you can find to decrease your cost.
If you want to save on insurance then get one with less coverage. The ACE uses the metal rating system for insurance coverage where platinum covers 90% of your out of pockets cost, gold covers 80%, silver covers 70% and bronze covers 60%.
You can also qualify for savings if you buy through the state marketplace, depending on your income, that is, if it is less than 400% the poverty level.
There are also tax breaks from health insurance for being self-employed, if your income is less than enough to cover the premium. To do this, go to Schedule C and report your profits, then deduct your premiums so that your Schedule C is equal to zero. You can then put the leftover premium costs as an itemized deduction on schedule A. Whether this will work or not is worth a try and this can give you money savings on health insurance if you are self-employed.