Which Is the Best Health Insurance for Self Employment?

Finding insurance as a self-employed worker can be difficult. Determining the right health plan requires research and some shopping around. The best health plan for you may not be the best health plan for the person standing next to you so it's important to find an insurance company and a health plan that is tailored to meet your specific needs.

Seek Group Coverage

• According to the National Association for the Self-Employed, participating in a group health insurance plan composed of other self-employed workers can lower your overall costs for health insurance. The larger the group of people, the more leverage you have in negotiating a more reasonable price for your health insurance premium. A group plan also has lower rates of refusal for pre-existing conditions. A list of group health plans for the self-employed or information on starting your own group health plan is usually available at your state's department of insurance.

Freedom Isn't Cheap

• The more freedom you desire in a health insurance plan, including choice of physicians, treatment plans and medications, the more you pay each month. According to CNN Money, the health plans with the lowest out-of-pocket costs for using coverage restrict services, including which physicians you may see and which hospitals you can go to for covered care, and establish criteria for seeing specialists. If you can afford the higher cost associated with a non-network health plan, then the freedom to choose your own doctor is beneficial. If you're interested in lower premiums and out-of-pocket expenses, a network heath plan with a health maintenance organization (HMO) may be a better choice.

Preventative Care Plans

• A point-of-service, or POS, health plan emphasizes more of a preventative care model than other forms of health insurance, according to the National Association for the Self-Employed. Preventative care can lead to catching illnesses and other health problems earlier through regular check-ups. Diseases caught early are often less expensive to treat and have a better chance of being cured than diseases diagnosed in advanced stages. A POS health plan may allow you to see physicians not participating in the plan's network and still receive reduced coverage.

Catastrophic Health Insurance

• If you are young, healthy and self-employed, you may not need to purchase a full health plan. Instead, you may consider purchasing a catastrophic health plan. This type of insurance pays for sudden injuries or illnesses that require an emergency room visit or a hospital stay. The deductible for this type of plan is between $500 and $1,500 depending on your specific type of coverage. This deductible might seem high but it pales when compared to the large medical bills you could incur from one unexpected injury, especially if surgery is needed.

High-Risk Pools

• If you are self-employed and have a pre-existing medical condition, finding an individual health plan may be all but impossible. Participating in a high-risk insurance pool may be your only alternative in finding health coverage. Each state in the United States requires insurance companies to participate in these high-risk pools as a condition of doing business. You can obtain a list of high risk-insurance pools in your area by visiting the website of your state department of insurance.