Self-Employed Health Insurance

If you are self-employed, or planning to start your own business now or after you retire, the following tips will help you find the best self-employed health insurance coverage options that will fit your budget.

Keep the Health Insurance You Have, For Awhile

The easiest way to ensure that you continue to have good health insurance after you leave your corporate job is to keep the same coverage by invoking your rights under health provisions in the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1986.

Under COBRA, you can leave your job and keep your current coverage for up to 18 months at group rates, so long as the company you’re leaving employs 20 or more people and you weren’t fired for gross negligence or incompetence. For more information about COBRA coverage, check with the U.S. Department of Labor.

Even so, expect the price tag to be a shock. Once you’re self-employed you’ll have to pay the full cost of the coverage, which is likely to be much higher than the amount you were paying as an employee. According to the Kaiser Family Foundation, workers typically pay only 28 percent of their insurance costs.

Evaluate your health needs and budget, then conduct some initial research to find the best policy for you. Try out our sponsored to see just how affordable a self-employed health insurance plan can be. Consider the following expenses when researching for self-employed health insurance:

• Hospital expenses, such as room and board
• Costs associated with surgical procedures
• Office visits and doctors’ fees
• Expenses to treat illness or injury

Additional considerations may include coverage for:

• Prescription drugs
• Maternity care
• Vision care
• Mental health benefits

Keep in mind that these additional coverage areas will increase the amount of your premium. Identify your particular needs to customize your distinct self-employed health insurance plan. Check with your state regulations for more information about insurance for the self-employed.

Visit the individual health insurance plan section for more details about what to look for in a health plan. Also you can use this guide line.

Find a Reputable Health Insurance Agent
If you prefer to deal directly with an agent for your self-employed health insurance, do your homework. Interview a few different agents, and compare the price and coverage of the self-employed health insurance plans they offer.

Before you sign anything or make any payments, check with your state insurance commissioner’s office to find out if any complaints have been filed against the agents or the insurers they represent.

Pay More to Pay Less
Another way to lower your self-employed health insurance premiums and still get good coverage is to choose a plan with a high deductible, and combine it with a tax-free health savings account (HSA). You deposit pre-tax dollars into your HSA, and use that money to pay medical expenses that aren’t reimbursed by your health insurance. You can find more information about health savings accounts and HSA-eligible insurance plans at hsainsider.com.

Join the Crowd
If your business grows and you start hiring employees, you may be able to save money by getting health insurance for your business through a professional employers association that provides health insurance and other services to small businesses. The can help you find a group that meets your needs. 

Don’t Let Time Slip By
Under the law, you are guaranteed access to health insurance as long as you find a new policy within 63 days after you reach the end of your COBRA benefits. If you fail to arrange for new coverage within that timeframe, your health insurance application could be rejected or the new policy could exclude a pre-existing condition for up to a year.

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