What Type of Medical Insurance to Get When You Are Self-Employed

Working for yourself can be rewarding, but it can be challenging as well. One of the biggest challenges of striking out on your own is finding health insurance coverage at an affordable price. If you are self-employed or own your own business, you need to seek out all the health insurance avenues available, from more affordable high-deductible accounts to state-subsidized plans.

High-Deductible Health Plans

• When it comes to insurance, the deductible and the premiums tend to move in opposite directions. That means raising your deductible can save you a lot of money on premiums. If you are relatively healthy, a high-deductible health plan can be a good choice, since the premiums are often considerably lower than other types of plans. These plans are designed to provide catastrophic coverage, and they require you to cover the cost of your routine health care, including doctor visits and prescription drugs, until you have satisfied the annual deductible.

Health Savings Account

• You can supplement your high-deductible health plan and reduce the risk associated with that higher deductible by combining that coverage with a health savings account. With a health savings account, you can put aside a specific amount of money each year, then use that money to pay for your health care expenses. One of the most attractive things about a health savings account is that it comes with a tax break you can use to lower your tax bill. In addition, the money you put into a health savings account can be rolled over from year to year, so you can build up a substantial balance over time.

State-Subsidized Plans

• If you qualify, you might be able to get state-subsidized insurance coverage for yourself and your family. These plans are generally designed for workers and self-employed individuals who make too much money to qualify for Medicaid but too little to afford an individual health plan on their own. You can start the search for subsidized coverage by going to the website for your state and searching for health insurance.

Trade Associations

• It you are a consultant or independent contractor within a particular industry, it is a good idea to seek out the trade associations that serve those industries. Some of those trade associations may offer their own group health plans, and that could save you a lot of money on your health insurance. You also can seek information about health insurance plans for self-employed individuals and business owners by working with your local Chamber of Commerce and other business organizations. Simply getting into contact with others in the business arena can help you get the coverage you need at an affordable price.