So, you’ve taken the plunge into self-employment—congratulations! You’ve now got the freedom to set your own hours, take on exciting projects, and call the shots. But there’s one little challenge every self-employed person faces: health insurance. Don’t worry; you’re not in this alone. Here’s a straightforward guide to securing health insurance without losing sleep (or your savings) over it.

1. Start with the Health Insurance Marketplace

The Health Insurance Marketplace is a great place to begin. This federal service (which you can explore in more detail at healthcaremarketplace.com) was designed to help people find affordable health insurance, and self-employed individuals are welcome to enroll. Depending on your income, you might even qualify for subsidies, which can take the edge off those premiums. Plans on the Marketplace are divided into four categories:

• Bronze: Lower premiums but higher out-of-pocket costs.
• Silver: A balance of monthly premiums and out-of-pocket costs.
• Gold: Higher premiums but lower out-of-pocket expenses.
• Platinum: Highest premiums but the lowest costs when you need care.

Each level has its trade-offs, so choosing the right one depends on how much you’re willing to spend each month versus how often you expect to use healthcare services. Are you young, healthy, and only go to the doctor for the occasional check-up? Bronze or Silver might work for you. Have ongoing health needs? Gold or Platinum could be a better choice.

2. Understand Your Deductibles and Coinsurance

Insurance can get complicated, so let’s break it down. Each plan has a deductible—the amount you pay before insurance starts covering costs. For example, if your deductible is $2,000, you’ll need to pay that much out of pocket before your insurance starts covering expenses. After the deductible, you’re usually responsible for a coinsurance percentage of the costs, like 20%.

This means that while insurance helps shoulder the load, you’re still sharing some costs. To budget smartly, choose a plan with a deductible and coinsurance level you can afford. Look at it as part of your overall business and health budget.

3. Check Out Health Savings Accounts (HSAs)

If you’re opting for a high-deductible health plan (often referred to as HDHPs), you’re eligible to open a Health Savings Account (HSA). Think of an HSA as your own little healthcare piggy bank. You put in pre-tax dollars, which you can then use for medical expenses. It’s like planning ahead for the “what ifs” in life.

HSAs come with some great perks:

• Pre-tax contributions mean you save a bit on taxes.
• The money rolls over year to year, so if you don’t use it, it keeps growing.
• Withdrawals are tax-free when used for qualified medical expenses.

This account can help cover deductibles and other out-of-pocket expenses, making a high-deductible plan more affordable in the long run.

4. Consider Association Health Plans (AHPs)

Sometimes, going it alone doesn’t mean you’re totally on your own. Association Health Plans allow self-employed individuals to join group health insurance plans, often through industry associations, trade groups, or even local chambers of commerce. By pooling resources with others, you can access health insurance options similar to those available to traditional employees, often at lower premiums.

Check out local or national organizations in your field—they’re a valuable resource for finding affordable group plans. Joining forces with others can lead to better rates, so this is worth looking into if you’re eligible.

5. Short-Term Health Insurance: Pros and Cons

Short-term health insurance plans aren’t meant for long-term coverage, but they can help fill in gaps if you’re between coverage options. These plans typically have lower premiums, but they come with significant limitations. Pre-existing conditions aren’t usually covered, and the coverage caps can be low. So, if you’re in a pinch, short-term plans can bridge the gap temporarily. Just don’t rely on them for long-term health security.

6. Don’t Forget About Medicaid and CHIP

Medicaid isn’t just for seniors—it’s a valuable safety net for individuals and families who meet certain income criteria. If your income is on the lower end, especially when just starting your business, you might qualify. This federal and state program provides essential coverage for eligible individuals at a low cost. Check out your state’s Medicaid program to see if you’re eligible, as income thresholds vary widely.

Also, if you’re a self-employed parent, you might be able to cover your children through the Children’s Health Insurance Program (CHIP), which provides low-cost health coverage for kids.

7. Budget Wisely and Make Health Insurance Non-Negotiable

Health insurance isn’t a splurge—it’s essential protection. When setting up your self-employment budget, health insurance needs to be a permanent line item. Think of it as your first layer of financial defense. Sure, it might mean fewer trips to your favorite coffee shop, but you’ll sleep better knowing you’re protected against big, unexpected medical bills.

To make it easier on your budget:

• Evaluate your business expenses and prioritize essentials like health insurance.
• If you’re new to self-employment, try to keep a personal emergency fund for healthcare in case of sudden expenses.
• If you’re doing well financially, consider upgrading to a plan with a lower deductible or better out-of-pocket maximum to safeguard your income.

8. Review Annually During Open Enrollment

The world of health insurance is always evolving. Every year, take advantage of the open enrollment period to review your options and assess your current needs. Whether it’s changing to a lower-cost plan or finding a policy with better coverage for a new health condition, your goal is to make sure your plan still fits your situation.

The Health Insurance Marketplace Open Enrollment Period is November 1st through January 15th annually. However, if you would like your new plan to begin on January 1st, you must enroll in a new plan before December 15th.

Health Insurance: Worth the Investment

Securing health insurance might seem daunting, but it’s worth the peace of mind. Self-employed professionals are often used to thinking outside the box and handling challenges head-on—health insurance is no different. Take a deep breath, use these resources, and don’t hesitate to seek help. Bancorp Insurance is here to answer questions and provide guidance on finding the best coverage.

For more in-depth information, check out healthcaremarketplace.com for insights on the latest coverage options, eligibility requirements, and subsidies. Here’s to protecting both your health and your business for the long haul!

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Bancorp’s insurance agents are available to provide you with a free review and consultation.  Contact Us – Bancorp Insurance Call 800-452-6826