5 Lessons Learned: Options
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. There are a lot of people who don’t have health insurance especially those who are self-employed. If you don’t have an employer who will provide health insurance for you, then you should try to get health insurance for yourself.
There are many options for insurance for those who are self employed. There are government-vetted policies being offered by private companies that offer 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.
But, if you don’t want to take advantage of government-run exchanges, there are still other reasonable health insurance for self-employed people.
Healthcare sharing ministries allows you to get insurance as a group. Monthly premiums go to the coverage of your healthcare and of those in your group. You can cut costs with this. 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 high-deductible health plan is a great option for you. The money you put in this health savings accounts can be used for your medical expenses without tax or penalties if you meet qualifications. 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.
Compare insurance policies so that you can get the best insurance deals. Although health insurance is expensive, there are still ways you can find to decrease your cost.
You can gain insurance savings by getting an insurance with less coverage. 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%.
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. To do this, go to Schedule C and report your profits, then deduct your premiums so that your Schedule C is equal to zero. The on schedule A, you should report the leftover premium costs 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.