Options Tips for The Average Joe

Guide to Health Insurance for the Self-Employed

Health insurance is necessary so that we can afford decent healthcare which is quite expensive. If you are employed, it would be a great relief if your employer provides health insurance for you. There are a lot of people who don’t have health insurance especially those who are self-employed. Self-employed people should get health insurance for themselves since there is no employer to provide them with one.

If you are self-employed looking for health insurance, you can find many options available for you. 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.

There are healthcare sharing ministries where you contribute as a group. So if you pay monthly premiums, this covers your healthcare and the healthcare of your group members. You costs can be cut through this type of insurance. But to ensure that you are getting the right coverage for you and your family you need to make a careful research on this.

Another option you can take is to open a Health Savings Account. You health funds will here be under your control. This health plan is a high-deductible plan. You put money into this account and you can withdraw funds to spend on medical expenses that meet the qualifications with no tax or penalty on the money you withdraw. 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. Decreasing your cost on expensive health insurance is still possible.

Getting insurance with less coverage helps you to save on insurance. The ACE uses the metal rating system for insurance coverage where platinum covers 90% of your out of pockets cost, gold covers 80%, silver covers 70% and bronze covers 60%.

Buying through the state marketplace can qualify your for savings if your incomes is less than 400% of 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. 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. You can then put the leftover premium costs as an itemized deduction on schedule A. Although this is not sure to work but you can still try it so that you can save money on health insurance as a self-employed individual.

Cite: imp source