Self-Employed Health Insurance
If you think being self-employed is easy or that anyone can do it just remember, when you are self-employed, not only are you the boss, you’re the employee as well. That means if you want health insurance, you have to buy it yourself. Finding the right self-employed health insurance is more than just getting something low-cost and affordable. You have to find the right policy for you and your particular health care needs.
Find the right self-employed health insurance for you.
Self-Employed Health Insurance
The most recent government data on uninsured self-employed stood at 31%. Another 28% purchased insurance directly with the remainder using insurance provided by a spouse’s plan. Unfortunately, this “recent” data is from 1993 so it’s difficult to get an accurate picture of today’s statistics.
The cost of self-employed health insurance can be significant. The government’s self-employed health insurance data is admittedly dated but it found that the higher income level of a self-employed person, the higher likelihood they’ll purchase insurance. Undoubtedly this correlation still holds true today. Given the steadily rising cost of healthcare insurance over the past 15 years, it’s not hard to imagine percentages of insured self-employed have declined somewhat.
What Types of Self-Employed Health Insurance are there?
Generally, self-employed health insurance is divided into two types.
A Fee for Service (FFS) or Indemnity Healthcare plan does not have a network of providers so an individual can choose any physician or hospital they want. An FFS will only cover what is deemed customary and/or reasonable. Patients are responsible for anything above-and-beyond that. You may also have to meet a deductible before an FFS’s coverage kicks in and there may be a co-insurance provision to boot.
Health Maintenance Organization (HMO) is opposite to an FFS wherein you pick your providers from a network. If you need to see a specialist, you will need a referral from your primary care physician. There may also be a small co-payment as well.
There are several other self-employed health insurance plan types. You can find more information about them in our Family Health Insurance section where you can consider other options that might fit your healthcare needs.
Comparing Self-Employed Health Insurance Rates
The rate you pay for self-employed health insurance will vary and will be largely based on health status, age, sex, pre-existing conditions, medical history, and other factors. You can usually get a quote for an individual plan as well as a family plan. You may expect to pay upwards of $400-$700 a month for a plan such as those mentioned above. If you want to add your spouse or child, expect those premiums to double or triple.
Self-employed health insurance can be considerably expensive with some FFS family plans costing about $25,000/year. With such an expense, it is easy to see why many self-employed people don’t bother with health-insurance coverage at all.
It’s Tax Deductible
One major advantage of self-employed health insurance is that it is 100% tax deductible as long as your company is profitable. That can go a long way towards defraying the overall cost of having a plan. Furthermore, the total premiums you paid (but not deductible, co-pays, or co-insurance) is directly deducted from your total income so it doesn’t need to be itemized.
If you think self-employed health insurance can work for you, please feel free to find plan that fits your needs. You can use InsuranceUSA.com at any time to get a free quote.