Health Insurance for Self-Employed

Health Insurance Options for the Self-Employed

One of the many perks of working for a company or organization is that you often receive health insurance coverage as part of your benefits package. If you are self-employed, you’re likely on your own as far as finding coverage and applying for it. You’ll need to budget for your coverage and choose the different parameters that it includes. Let’s look at some of the different options that you have for health insurance if you’re self-employed.

Using Coverage From Family

If you have a spouse that has health insurance from their job, they may be able to add you as a dependent. This is often a very affordable option compared to securing your own separate coverage. You’ll have to look at the details of your spouse’s plan. You may not receive as much coverage as they do, but many plans provide consistent coverage to everyone that is part of the policy.

If you are under the age of 25, you may be able to be added to your parents’ policy if they agree to it. The one downside to this is that your parents will be able to see the details of the coverage that you’re receiving.

Even if you’re not legally married or have an immediate family member that can add you to their plan, you may be able to secure coverage through someone else’s policy. Many health care companies allow you to be added as a dependent if you are simply a domestic partner of someone that already has coverage.

Organizational Coverage

There are various organizations and groups that provide health insurance options to those professionals that are self-employed entrepreneurs. This includes the Affiliated Workers Association, which offers coverage for independent contractors, small business owners, etc. The Association for Computing Machinery offers coverage for computer engineers, coders, developers, etc. Depending on what your profession is, there may be an organization that you can utilize for coverage.

Government Provisions

If your income is below a certain threshold, you may be eligible for health insurance coverage through the federal government. This includes programs such as Medicaid. Premium tax credits reduce the amount that you must pay for coverage monthly. You receive a higher credit the lower your income is. Cost-sharing subsidies lower your cost for things like deductibles and copays. Benefits can vary a bit depending on where you’re located.

Health Savings Account

If you have insurance coverage, you can open a health savings account to help you save additional money as a self-employed individual. You can add money to your HSA periodically, using this tax-free money to pay for your medical expenses. In addition to paying for your doctor’s appointments and procedures, you can also use your HSA for things like eyeglasses, vitamins, bandages, etc.

Approximately 16 million Americans are self-employed, according to the Bureau of Labor. There are many different options available for health insurance; you just need to do a bit of research to determine what your best option is.

Get More Information Today

We encourage you to reach out to our team here at K&B Financial. We are in Darien, IL, but serve the entire state of Illinois. We can answer any questions that you have about your health insurance options, including walking you through the process of applying. Contact us today for more information.