You do not have to be associated with a company or have an employer that provides you with health insurance. You can avail of healthcare plans even if you’re self-employed, a gig worker, an independent contractor, or a freelancer. For this, you only need to learn about the process of enrolling in health insurance coverage. Finding the best insurance can be confusing with many providers, policies, rules and payment options. If you are a self-employed individual and are looking for healthcare coverage or medical cost-sharing, here is the perfect guide for you.
Who Can Be Considered Self-employed?
Self-employed people are independent workers like contractor tradespeople, sole proprietors of businesses, freelance writers, etc. However, it may also include people who work for large companies or groups but are not technically employees, like doctors, consultants, real estate agents and lawyers.
Do Self-employed People Need Health Insurance?
Self-employed do need health insurance coverage. It is recommended by experts that comprehensive health insurance is required by all adults, as paying out of your pocket can lead to medical debt without any insurance. Although not paying for insurance can save money in the short term, uninsured people can face catastrophic financial consequences at any point. Studies have also shown that people without health insurance tend to make important health decisions based on money and, as a result, often face poor health outcomes.
Tips For Finding Better Healthcare Coverage For Self-Employed People
An ideal health insurance policy will maintain a balance between the premiums, deductibles and coverage suitable for the individual. So when looking for health insurance as a self-employed person, you should look for an insurance company with a large provider network and a customer-friendly claims process. You should also check if they qualify for premium tax credits and medical cost-sharing reductions, as this can make a huge difference in affordability. Please look out for research marketplace options before considering a broker or a private exchange, or you can also consider joining an organization that offers group plans. You must check the provider’s eligibility for a special enrollment period or year-round enrollment. Make sure that you treat insurance as an investment in financial well-being.
Qualifying For Healthcare Insurance
If you want to get a premium tax credit or a reduction of your out-of-pocket costs, you will need to estimate your household income for the year you are getting coverage. But this can be challenging for business owners whose income varies. In such cases, you should provide your best estimate by talking to your tax professional for advice on estimating the household income. If you qualify and your expected household income changes during the year, you should update your estimated income as soon as possible. If you make more than what you recorded, you may have to pay back some or all of the premium tax credits that you received in advance. But if you make less, you can get additional premium tax credits when you file your taxes.
So keep the above points in mind, and start looking for the best insurance company that can offer you the perfect healthcare plans that would be ideal for you.