Being self-employed offers many benefits, such as setting your own hours and pay rates. However, it also means you have to figure out health insurance through a third party. If you’re a freelancer or you’ve recently started a business and are searching for health coverage, use the tips below to guide you through the process. 

A Guide to Health Insurance for Self-Employed Workers

1. Compare the Options

There are many types of health insurance available, and you should research the different carriers in the area to find multiple plans that best suit your needs. Compare their different prices, benefits, and customer reviews before making a decision. Only purchase insurance through a licensed agent. Consider joining an organization designed to give entrepreneurs guidance during this process. 

2. Consider Tax Deductions

Some self-employed individuals receive a health insurance tax deduction. You must have no other forms of coverage, and you must report some income from being self-employed to qualify.

If you are eligible, you are allowed to deduct 100% of the premiums from your gross income each year. Talk to an insurance specialist to make sure you get the most out of this benefit. Keep in mind that this feature does not apply to small businesses. 

3. Take Advantage of COBRA

If you were recently laid off, you might have access to health insurance through COBRA. This is a government-funded program that provides the option to briefly extend your employer-based insurance at your own expense. It also covers 65% of premiums.

This may be a good option for those with preexisting conditions or other issues that make finding adequate health coverage difficult. Otherwise, COBRA is often more expensive than a third-party option. 

4. Secure Your Rate

One way to save money on health insurance is to lock in the rate with your provider. Monthly premiums routinely increase, but you can ask for a rate guarantee when shopping around. While this is usually temporary, it may keep your cost from increasing for up to several years. A licensed insurance agent can help you find companies that offer this deal. 

5. Think About HSAs

An HSA is a savings account designed to be used with some health insurance plans. They usually come with lower monthly premiums and a higher deductible than other plans. You can save a percentage of your pretax income and put it into the account. As the money accrues interest, the amount will grow, and you can use it to pay for medical bills. 

If you need help finding health insurance, turn to Gary Lung – Farmers Insurance in St. Charles, MO. With over 45 years of experience, Gary and his team will find a plan that suits your needs and budget. Freelancers and business owners can rest assured that this team will work with them to find solutions to all their concerns. Visit them online to learn more, or call (636) 441-1897 to schedule an appointment.