Guide to Health Insurance for the Self-Employed
Today, the cost of healthcare is very high and this is the reason why all of us need health insurance. The good thing for people who are employed is that there are employers that provide health insurance for their employees. But there are many who are not employed, and most self-employed individuals do not have health insurance at all. 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. This is made possible by the Affordable Care Act requiring states to run their own insurance marketplace or use the federal one.
There are many other reasonable health insurance options for the self-employed people who don’t want to use government-run exchanges.
Healthcare sharing ministries allows you to get insurance as a group. So if you pay monthly premiums, this covers your healthcare and the healthcare of your group members. You can cut costs with this. Take time to learn more about this so that you can find the right health insurance for you and your family.
Another great way to ensure healthcare is to open a Health Savings Account. You health funds will here be under your control. This health plan is a high-deductible 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. And what is great about this account is that you put your own money in it. 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. Health insurance can be expensive but you can still look for ways to decrease your cost.
You can gain insurance savings by getting an insurance with less coverage. The ACA uses metal rating system where platinum covers 90% of your out of pockets costs, 80% for gold, 70% for silver, and 60% for bronze.
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.
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.