As a self-employed individual, you’re in charge of your own health insurance journey. Without a human resource department to guide you, it’s up to you to select the right coverage for yourself and your family, if applicable.
Most people new to the world of self-employment may ask friends and family for advice or search the Internet for information on health insurance. However, this can become overwhelming due to the various options available in each state. Fortunately, help is available.
Find Affordable Health Insurance
Coverage is not available through a “group employer” if you are self-employed. Therefore, the Federal or State Marketplace exchange is a smart option to consider for your health insurance needs.
There are many benefits to the Marketplace for self-employed people who need major medical coverage outside of an employer. You have the option of selecting from different carriers and deductible options.
Temporary Private Health Coverage: Your Short Term Solution
You may prefer to purchase a health insurance plan on the private market. Known as short-term plans, the private market option can be great for higher-income earners who do not qualify for subsidies on the Marketplace. While called “short term,” these plans can cover you up to 36 months depending on the state you live in.
If you have major preexisting conditions or need pregnancy care, these plans are not ideal for you. Again, trusting a broker who has access to all options is wise so you can understand all benefits.
Peace Of Mind Plans: Fixed Indemnity Options
Fixed indemnity insurance plans can also be a affordable option for self-employed individuals and families who need health coverage. These plans pay out fixed benefits for certain services. For example, the indemnity plan may cover $100 per doctor office visit. Basically, this would mean you’ll receive a bill for anything over the $100 fixed benefit paid by the carrier.
Thankfully, fixed indemnity plans DO pay out benefits for larger needs, too. Fixed benefits for hospitalizations, surgeries, scans, tests, and even treatments are also paid out by various carriers.
Community Health Plans: Sharing For Wellness
Finally, health sharing plans are becoming more and more popular for not only self-employed individuals and families, but anyone needing alternative forms of insurance. It is important to note these plans are NOT to be confused with health insurance – they are not regulated by any state or federal government. Also, health sharing plans are usually religious-based, which may or may not appeal to you and your beliefs.
Each member pays a monthly fee to become part of a group that “shares” medical bills. There is an annual share amount that you have to meet before your medical costs are shared by other members. This is similar to how a deductible works.
