One of the biggest benefits of freelancing is being your own boss. You have the autonomy and flexibility to set your own schedule, and you can often work from home. The other great benefit is that you’re in charge of managing your finances, including your health insurance. If you’re self-employed or a contractor, getting competitive rates on health coverage can be difficult.
So do you really need one? Yes, it would be wise of you to look into getting a plan that is right for you. It’s not just about providing a benefit though — it’s also about protecting your company from lawsuits.
Without health insurance, if any of your employees get sick and can’t work, they can sue you for lost wages. The best way to protect yourself is to make sure all of your employees have coverage under the same policy.
Here are some things that you need to know:
Is health insurance mandatory for business owners?
The Affordable Care Act (ACA) does not mandate that small firms with fewer than 50 employees provide their workers with health insurance. Naturally, this means that companies with 50 or more workers must offer reasonable health insurance in compliance with the law.
The Cost of Self-Funding Your Health Insurance
Self-funding your health insurance can be expensive, but it’s not always the case.
According to a recent study, self-funded health plans cost more than traditional plans. But that doesn’t mean all self-funded plans are expensive. Here’s what you need to know about self-funded health coverage, and how much it will cost you.
What is self-funding?
Self-funding is essentially paying for your health care yourself instead of paying premiums to an insurance company. If you’re self-funded, you’ll pay the full cost of your medical expenses out of pocket before submitting any claims for reimbursement from your insurance provider at the end of the year.
When Should You Consider Self-Funding?
Self-funding may be an option for people who:
- Don’t qualify for health coverage through an employer or public programs;
- Have high medical expenses relative to their income; or
- Want more control over their health care payments.
The cost of self-funding your health insurance will depend on several factors, including:
- Your age and family size
- The level of coverage you choose
- Your deductible amount
Affordable Health Insurance for the Freelancer and Small Business Owner
A lot of people think that health insurance is out of reach for freelancers and small business owners. That’s not true. In reality, every business owner needs to be aware of their health insurance options and how they can be used to help their business grow.
It’s important to keep in mind that there are two types of health insurance: employer-sponsored and individual plans.
If you’re self-employed, chances are you don’t have access to employer-sponsored insurance. But that doesn’t mean you can’t get coverage — there are plenty of options available on the individual market, including plans that don’t require a monthly premium or deductible. You just have to know where to look.
Here are some quick tips for finding affordable health insurance as a freelancer or small business owner:
- Consider short-term plans if it’s been more than 12 months since you’ve had coverage.
- Consider Medigap policies if your income isn’t high enough to qualify for an ACA plan.
- Shop around for an individual health plan that fits your needs.
Health Insurance With A Pre-Existing Condition
A pre-existing condition is any medical condition that existed before an individual’s enrollment in a group health plan or other group insurance coverage (i.e., when he or she first applied for coverage).
In some cases, insurers may refuse to cover conditions that existed prior to enrollment; in others, insurers may charge higher premiums based on the risk posed by these conditions. While most states have passed laws prohibiting this practice, there are still some loopholes that allow insurers to deny payment for certain treatments related to pre-existing conditions.
Takeaway: You can find affordable health insurance for freelancers and self employed people.
Self-employed individuals have the same needs as anyone else, and our plans are designed with those needs in mind.
There are certainly pros and cons of going the freelance route, but one recurring hassle that self-employed individuals have to face is health insurance. Fortunately, if you’re looking for affordable health coverage, we have options available for you, regardless of your needs or budget.
You can learn more about our health insurance plans by contacting one of our licensed agents today!