Guide to Health Insurance 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. 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. There are many private companies today selling government-vetted policies that offer 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.
In healthcare sharing ministries, you contribute to health insurance as a group. So if you pay monthly premiums, this covers your healthcare and the healthcare of your group members. This can help you cut costs. But to ensure that you are getting the right coverage for you and your family you need to make a careful research on this.
Opening a Health Savings Account is another option you can take. Here you can have control over your health funds. 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. And what is great about this account is that you put your own money in it. So if you need money for non-medical expense, you can still take it out and use it, but with possible taxes and penalties.
You can get the best insurance deals by comparing insurance prices. Decreasing your cost on expensive health insurance is still possible.
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%.
Buying through the state marketplace can qualify your for savings if your incomes is less than 400% of the poverty level.
There are also tax breaks from health insurance for being self-employed, if your income is less than enough to cover the premium. 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. The leftover premium costs should them be put on Schedule A as an itemized deduction. Although this is not guaranteed to work but it can help to save money on health insurance if you are self-employed.