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An independent contractor, self-employed individual, or freelance worker doesn’t work for a specific company but does business independently. Although these individuals enjoy benefits such as work-life balance and flexibility, they have to manage all the aspects of their business by themselves.
Healthcare coverage is one of the most essential considerations for any self-employed individual or freelance worker. Platforms like HealthMarkets will definitely come in handy when it comes to finding a medical plan that is suitable for you.
Being a freelancer might be risky since you definitely won’t have any income if you fall sick and can’t work. In such a situation, you will have to pay your medical expenses out-of-pocket. Since self-employed and freelance workers lack the option of group medical insurance, it is increasingly essential to get individual coverage.
How to Get Health Insurance If You Are a Self-Employed or Freelance Worker
Not every individual qualifies for the same health insurance options; therefore, you should consider your personal financial and health situation before committing to an insurance plan. You will need to:
1. Determine Your Budget
Health insurance expenses in the U.S. can vary from hundreds to thousands of dollars every year. Fortunately, there are multiple options to fit different budgets. Even though you might often end up paying more than you’d like for your medical insurance, it is essential to create a realistic budget for yourself.
2. Evaluate Your Health Insurance Needs
Before settling for a plan, you should take the time to consider whether the plan will fit your immediate and future medical needs. Once you have established the kind of insurance coverage you need, it will be easier to find the right health insurance plan for you.
3. Research Your Options
Health insurances come in a variety of policy options. Although finding a policy that aligns with your medical needs might be time-consuming, the best fit for you is definitely out there.
What Are the Best Health Insurance Options For A Self-Employed Freelancer
1. COBRA
The Consolidated Omnibus Budget Reconciliation Act, passed in 1986, comprises a rule that states that an employee must be given the opportunity to extend their coverage for up to 18 months by paying their own premium after leaving a company where they had healthcare coverage. If you are planning to leave your current job, this option could sustain you as you continue to look for future self-employed insurance options.
2. ACA
Being a legal U.S. resident with a low income makes you susceptible to contracting a significant disease and pre-existing conditions. Luckily, the Affordable Care Act has revolutionized health care to make sure you get the medical attention you need irrespective of your employment status.
This means that super expensive high-risk pools have been almost completely eradicated. Legal immigrants can also acquire healthcare coverage through the ACA. The Affordable Care Act is the most viable option for obtaining freelancer health insurance in most cases.
3. Your Domestic Partner’s Plan
In the event that your spouse has healthcare coverage through their employer, you might be able to join their plan. Since it is an employer-based plan, it can save you both money by charging a lower premium because the employer usually pays into the plan. Even when you aren’t legally married, it is still possible to qualify as a domestic partner as long as you share the same home and aren’t married to anyone else.
4. Professional Associations
In case you become a member of an independent or self-employed worker association, then you might be able to acquire group insurance through such a membership. The group insurance enables individuals to unite as members of a group which is almost similar to employer-sponsored group insurance.
A great example of a group that offers health insurance coverage for independent workers is the Freelancers Union. The Freelancer Union provides term life insurance and dental coverage, amongst other options.
Bottom Line
As the medical industry continues to experience frequent advancements, self-employed individuals need to seek health insurance to cover their annual medical expenses. Since health insurance is established based on numerous factors, your individual needs and financial situation become key factors in determining the plan that will work best for you.
You may also like: What insurance do you need as a freelancer?
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