The Beginner’s Guide to Guide
Health Insurance Options for the Self-Employed
We all need health insurance since the cost of healthcare is very high. There are many working individuals who are given health insurance by their employers. However not all people are employed and some who are self-employed have no insurance to speak of. If you don’t have an employer who will provide health insurance for you, then you should try to get health insurance for yourself.
Self-employed individuals can actually find many options for health insurance. There are many private companies today selling government-vetted policies that offer different coverage amounts. This is part of the Affordable Care Act where states are required to run their own insurance marketplace or use the federal one.
But, if you don’t want to take advantage of government-run exchanges, there are still other reasonable health insurance for self-employed people.
There are healthcare sharing ministries where you contribute as a group. You and members of your group pay monthly premiums that go to the group insurance coverage. This can help you cut costs. But this needs further research so that you can get the right coverage for you and your family.
Another option you can take is to open a Health Savings Account. Since this is a savings account, then you have full control over it. This is a high-deductible health plan. Money is put into this account which you can withdraw for your medical expenses that meet qualifications with no tax or penalty on it. This is great since this is your own money. For you non medical expenses, it will incur taxes and penalties if you take it out from this account.
You can get the best insurance deals by comparing insurance prices. Although health insurance is expensive, there are still ways you can find to decrease your cost.
You can gain insurance savings by getting an insurance with less coverage. 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.
If your income is less than enough to cover your monthly premium, then you can benefit from tax breaks from health insurance for being self-employed. In your tax form, fill up Schedule C with your self-employed income, then you should make schedule C zero by deducting your premiums from it. You can then put the leftover premium costs as an itemized deduction on schedule A. 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.