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Health Insurance for the Self-Employed

It could be challenging to navigate your options when you are a self employed. You will need to buy your own private insurance. We gathered some tips and helpful information you can use when shopping for health insurance.

Self employed wearing apron and take order from a client

Table of Contents

Overview

Navigating health insurance options as a self-employed individual can be a unique challenge. Unlike those covered by employer-sponsored plans, you become your own HR department, responsible for securing your insurance. This guide aims to empower you with essential information to ease the process of selecting the right health insurance coverage.

Why self employed needs insurance

Medical bills are a leading cause of bankruptcies in America. As a self-employed professional, you’ve embraced the autonomy and risks of not being a traditional employee. Protect yourself from potential financial setbacks caused by unexpected medical expenses. It’s time to prioritize your peace of mind and invest in health insurance.

What are your health insurance options

You can buy private health insurance in a few ways, Here are a few:

The health insurance marketplace

  • Access plans during the annual open enrollment period (November 1 – January 15) or qualify for special enrollment. Visit the Marketplace at healthcare.gov.

Note: Some states operate their own marketplaces.

You may qualify for tax credits

  • Check eligibility for tax credits when applying through the marketplace. Income-based credits can significantly reduce monthly premium costs.

Tip: If your income is fluctuating and hard to predict, than estimate an average based on your previous tax return.

You may deduct your health insurance premium

Many self-employed individuals can deduct health insurance premiums from taxes. Consult with a tax professional to determine eligibility.

Outside of the health insurance marketplace

Explore plans outside the marketplace for less paperwork. However, note that tax credits and financial assistance may not apply.

HSA Health savings account

Consider an HSA with a High Deductible Health Plan (HDHP) for tax benefits. Funds spent on eligible medical expenses are tax-free.

Short term plan

  • Opt for short-term medical plans for flexibility (1 month to about a year). While more affordable, these plans may not cover preexisting conditions.

Caution: Read the fine print and understand limitations before purchasing.

Tips for shopping for a plan

Navigating the health insurance landscape requires strategic decision-making. Here are some tips

If you apply through the marketplace

  • Don’t waive the option to apply for savings, even if you believe you won’t qualify. Surprisingly, many individuals do qualify for subsidies.

If you buy a short term plan

  • Be aware of restrictions and limitations. If your state allows short-term plans to last a year, ensure it aligns with the marketplace open enrollment period.

Supplement your plan

Consider supplement plans to offset out-of-pocket expenses. These plans provide additional coverage for accidents, injuries, critical illnesses, and hospital stays.

We can help you find and compare plans

How to buy

If you’re ready to enroll in a health plan, here’s how we can help.

Buy a marketplace plan

  • Go to healthcare.gov
  • Apply online with us (You will be redirected to a partner site).
  • Call us at (505) 305-0744 or use any other independent broker you trust.

Buy short term plans

  • Directly from insurance companies that offers a short term plan. (If available in your state)
  • Through us, go to our short term page.

Disclaimer:

The information provided in this article/post is for general educational purposes only. While we make efforts to periodically review and ensure the accuracy and relevance of the content, it should not be considered as professional advice. Health insurance policies, tax regulations, and other related subjects are complex and may be subject to changes.

We recommend consulting with relevant professionals, such as tax advisors or insurance experts, to obtain personalized advice based on your specific circumstances. Any reliance you place on the information from this article/post is strictly at your own risk. We do not assume any responsibility for losses or damages resulting from the use of the provided information.

Additionally, keep in mind that regulations, plans, and guidelines may vary by location and are subject to change. It is advisable to verify information with authoritative sources and stay informed about updates.

Thank you for understanding that this content is not a substitute for professional guidance, and we encourage you to seek expert advice for your individual needs and situations.