Health Insurance Options for the Self-Employed
Today, the cost of healthcare is very high and this is the reason why all of us need health insurance. The good thing for people who are employed is that there are employers that provide health insurance for their employees. However not all people are employed and some who are self-employed have no insurance to speak of. Self-employed people should get health insurance for themselves since there is no employer to provide them with one.
Self-employed individuals can actually find many options for health insurance. You can purchase insurance from private companies selling government-vetted policies offering different coverage amounts. States are required to run their own insurance marketplace or use the federal one through the Affordable Care Act.
There are many other reasonable health insurance options for the self-employed people who don’t want to use government-run exchanges.
Healthcare sharing ministries allows you to get insurance as a group. Monthly premiums go to the coverage of your healthcare and of those in your group. You costs can be cut through this type of insurance. Take time to learn more about this so that you can find the right health insurance for you and your family.
Opening a Health Savings Account is another option you can take. You health funds will here be under your control. This health plan is a high-deductible plan. The money you put in this health savings accounts can be used for your medical expenses without tax or penalties if you meet qualifications. This is great since this is your own money. Even if you need money for non medical expenses you can still withdraw from this account but possibly subject to taxes and penalties.
Compare insurance policies so that you can get the best insurance deals. Health insurance can be expensive but you can still look for ways to decrease your cost.
Getting insurance with less coverage helps you to save on insurance. Metal rating system is used by the ACA where platinum covers 90% of your out of pocket costs, gold is 80%, silver 70%, and bronze 60%.
You can also qualify for savings if you buy through the state marketplace, depending on your income, that is, if it is less than 400% the poverty level.
There are also tax breaks from health insurance for being self-employed, if your income is less than enough to cover the premium. There is way to do this by reporting your profits on Schedule C, then deducting the premiums until your Schedule C is equal to 0. The leftover premium costs should them be put on Schedule A as an itemized deduction. Whether this will work or not is worth a try and this can give you money savings on health insurance if you are self-employed.