Self-employed Health Insurance is actually individual health insurance that is meant for the self-employed people. This type of health insurance is available with different health insurance companies. One cannot buy insurance of this type from an employer. People who are entrepreneurs or are working at small-sized companies can purchase self-employed health insurance. There are different options in self-employed health insurance that must be considered before buying one.
Options in self-employed health insurance
One must realistically evaluate the benefits offered with different individual coverage before going for one. For those of you who are young and healthy, the right decision will be to go for a plan that is large and has a high deductible. In this case, an indemnity plan or a comprehensive plan will not be the right choice. The decision can change in case of coverage for family health or children. One must also consider the monetary benefits while buying self employed health insurance. In spite of the cost being high, the tax benefits for this kind of insurance coverage makes purchase very affordable.
If one is employed, then going for the COBRA insurance as an intermediary plan would be okay, as you search for other available options. If however, one has left a job that offered health insurance, he or she can continue the former employer's plan. The COBRA mandate says that employers having employees numbering 20 or more and having group health plan must provide employees as well as their dependents the choice of extending their membership by continuing to pay the expenses after leaving their job. The COBRA plan can be continued for 18 months during which, one can look for a better self-employed plan. It needs mentioning here that group rates are considerably lower compared to individual policies that help in making smart short term savings through COBRA.
There are health insurance programs meant for home based businesses that are offered by some states. One can consult their broker about different insurance policies that meet their choice. One can also join some trade association or any business organization to find affordable individual health plans. By comparing the different policies that provide comparable benefits, one can find the right policy that they find best for themselves.
A good alternative to pay for health care is a health savings account (HSA), which is a savings plan and not any health insurance. HSA makes one to pay for their current health expense while saving or investing for future qualified expenses that are fully tax-free. To open an HSA, one must have coverage of high deductible health plan which is also known as “catastrophic” health insurance. In these kind of plans, one does not get paid for the first few thousand dollars of health care expenses, but are provided coverage after that amount of dollars are paid out-of-pocket.