These days, many people are looking for affordable health insurance. For someone who is self-employed, this can seem like an impossible task. Those that work for a company with a strong employee health benefits package generally do not have to worry about being denied a policy or being faced with a premium that is too high. The self-employed generally do not have this luxury. However, the good news is that affordable self employed health insurance is not quite as unattainable as it seems. Actually, it is quite possible to procure a comprehensive and affordable policy—provided one takes the right steps.
State Laws Regarding Mandatory Coverage for Small Businesses
The first step to take is to look at the local laws and rules in your state. Depending upon where you reside, your state may mandate coverage to small businesses, which would mean that you could not be turned down for coverage by an insurance company. Granted, the coverage that they offer may not be the most comprehensive policy available. (Lawmakers understand that the insurance companies may suffer financial devastation if they are compelled to insure all small businesses with total blanket policies.) However, some coverage is much better than receiving no coverage at all. Keep this in mind when looking over state mandated minimal policy offers.
Of course, the need for small business to find affordable self employed health insurance coverage creates an opening for search firms. These firms are essentially intermediaries that match up the self-employed with policies that fit their individual needs. Some of these companies exist online, which makes taking advantage of their services even easier. So, those who are having a hard time finding an affordable policy would certainly benefit from looking into what these companies have to offer.
But what about speaking directly to a licensed insurance agent regarding an affordable insurance policy? For those seeking affordable self employed health insurance, an agent may be the first person they seek—or the last. It often depends on previous personal experience. Some may have a bad taste in their mouth about certain agents due to having been turned down for a policy in the past. Low expectations may be understandable, but the truth is a good agent can be a big help.
Tips for Getting an Affordable Policy
There are also ways that a self-employed individual can increase his or her chances of receiving an affordable policy. For example, a high deductible health plan (HDHP) may prove more likely to be approved as opposed to a traditional, standard insurance policy. As the name implies, this is a policy with a larger out of pocket expense on medical care which as a trade off has a lower expense on monthly premiums. An HDHP can be paired with a health savings account, or HSA, to obtain quality health insurance while saving money and gaining some tax advantages. For more information on the HSA/HDHP combo, see our page on HSAs.