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Self-Employed Health Insurance Plans

When you are self-employed, you are responsible for funding the benefits a traditional company would provide. This includes investing in your retirement, saving for slow economic times and providing your own health insurance. Medical bills can add up quickly, even for a relatively healthy person. Health insurance can stop you from declaring medical bankruptcy.

  1. High-Deductible Plan with Health Savings Account

    • A high-deductible health insurance plan with a Health Savings Account (HSA) is one option for someone who is self-employed. A high-deductible insurance plan has a deductible amount of at least $1,000 before the insurance company will cover any medical costs. Once you reach the deductible, the insurance will cover all remaining expenses completely. These plans offer lower monthly premiums, but you must pay for most of your care out-of-pocket. You can contribute to your health savings account tax-free and withdraw the money to pay your deductible and cover medical bills.

    Spouse's Plan

    • If you are married and your spouse is employed, find out if your spouse has a plan you can enroll in while you are self-employed. Some companies offer insurance to life partners or partners in a long-term relationship. This is worth looking into especially if you have existing medical conditions and have a difficult time qualifying for an individual insurance plan. Additionally, the premiums in group plans are usually lower than in individual plans.

    Professional Organization

    • Another option is to join a professional organization that offers insurance plan options to its members at a discounted price. There are organizations for sales, writing and nearly every other profession. These organizations will list the health insurance plans as a benefit of joining the organization. If you already belong to a professional organization, determine if it offers a discounted or group policy to members. Some of these plans will not be as good as what you can qualify for on your own, so compare these plans to your other options.

    Traditional Individual Insurance Options

    • A traditional individual health insurance plan is another option. These monthly premiums are higher than those of a high-deductible plan, but you can visit the doctor and make co-payments instead of paying the entire cost for the visit. This is a good option if you think you will have a difficult time saving up for the deductible. Steer clear of hybrid plans with a high deductible and co-payments that do not include as much coverage once you reach the deductible. This often costs more than a traditional or high-deductible plan.

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