In the image, a girl in pajamas is using a computer. The text says: "Five healthcare alternatives for independent contractors: your spouse, Cobra insurance, the Freelancers Union, and professional associations."
Anyone who conducts business on their own and is not an employee of a firm is referred to as a freelancer, independent contractor, or self-employed person. If you work for yourself, you may benefit from advantages like flexibility and a better work-life balance. However, you are also required to handle all of your benefits on your own, including your health insurance.
No matter who you are, health care is a crucial factor, but if you work for yourself, especially if you're accustomed to receiving coverage through your company, you might disregard it. Thankfully, you have choices. Additionally, you might be eligible for a better plan or a lower premium than you would be through your employer.
main points
- People without health insurance, including freelancers, can purchase it through the Health Insurance Marketplace, which is run in accordance with the guidelines of the Affordable Care Act (ACA), also known as "Obamacare."
- If you recently lost your job, you might be able to get COBRA coverage for up to 36 months, or you could check out certain associations for professionals.
- Short-term health insurance plans offer some fundamental, transient coverage, but many fall short of ACA requirements.
- The ideal health insurance plan for you will depend on a variety of factors, including your individual needs and the environment.
How Much Does Freelance Health Insurance Cost?
The cost of health insurance varies for each person. Consider this before you worry about the expense of health insurance: The Kaiser Family Foundation reports that the lowest-cost bronze tier premium is on average $328, while the lowest-cost gold tier premium is on average $482. You can also obtain affordable health insurance outside of the Health Insurance Marketplace plans.
Where Can You Get Health Insurance If You Own Your Own Business?
Finding inexpensive health insurance is a key issue for independent, self-employed, and freelance workers. Fortunately, there are several solutions available. With a little research, you can find a sound strategy to safeguard your health and obtain care when you require it.
The Health Insurance Marketplace
People have had access to Healthcare.gov's Marketplace or their state's health insurance marketplace ever since the Affordable Care Act (ACA), sometimes known as "Obamacare," went into force. You might be able to accomplish this as a small business or as an individual.
The four types of health insurance plans available on the marketplace are Bronze, Silver, Gold, and Platinum. Each area outlines the cost-sharing between your plan and you. Plans purchased by the middle of December, when open enrollment for ACA plans typically starts, take effect on January 1 of the following year. Your coverage would therefore start on January 1, 2022, assuming you signed up by December 15, 2021. Open enrollment itself was extended starting in 2021 through mid-January of the following year.
You might be eligible for premium tax credits that lower the price of your Marketplace plan, depending on the size of your family and your income. To learn more, go to Healthcare.gov's plan finder.
Whether open enrollment is over, you can check the marketplace to see if there is a special enrollment period that applies to you. You may be eligible for health insurance outside of the open enrollment period due to certain events and changes in your life, such as getting married, having a kid, or losing an employer-sponsored plan. If you are eligible for Medicaid, you can also obtain health insurance.
The Strategy of Your Domestic Partner or Spouse
You may be able to join your spouse's plan if they are employed and have coverage via their place of business. Being an employer-based plan, it may also result in financial savings for you. Given that the employer typically contributes to the plan, it might charge a reduced premium.
If you share a house and lead a domestic life together, even if you are not married, you might be considered a domestic partner. However, it is illegal to marry someone else.
COBRA Protection
You could be eligible to keep your current coverage for at least 18 months if you recently left or are about to leave your full-time employment to become self-employed. Your eligibility for COBRA coverage will be confirmed by your plan's provider.
The Consolidated Omnibus Budget Reconciliation Act is abbreviated as "COBRA." When your group health insurance would otherwise expire, it enables you to maintain your coverage for up to 36 months.
Because your company is no longer paying the premium, individual COBRA plans are frequently more expensive than what you spent when working. Additionally, they could cost more than a Marketplace plan. Remember that you may be eligible for a special enrollment period if you are quitting your employment. To put it another way, you could sign up for a Marketplace plan outside of the fall's regular open enrollment period. Remember that COBRA is only a temporary solution, and make sure to compare your options.
Organizations of professionals
Your occupation might have ties to some disciplines. You could also join an organization for independent or self-employed workers. You might be able to obtain group insurance through these memberships in those circumstances.
Individuals are able to unite under group insurance as members of a group (of self-employed workers). This might be comparable to employer-sponsored group insurance. The Freelancers Union is one instance of a group that provides a health insurance program. Along with dental insurance and term life insurance, the group also provides other choices.
Short-Term or Temporary Insurance
If you missed the open enrollment period and need insurance until you can enroll in a different plan, a short-term, or "limited duration," health insurance plan can be a temporary solution to take into account. Short-term insurance often offers little more than transitory protection for medical crises, not necessarily for routine maintenance or prevention.
The minimal essential health coverage offered by health insurance plans under the Affordable Care Act is not given by short-term health insurance policies since they are not ACA-compliant.
How may health insurance costs be reduced?
If the plan's costs are too high for you, you might want to consider a high-deductible health plan (HDHP). Alternatively, you might want to select a lower rung in the market. Another option is to speak with a health insurance broker, who can look for health plans on your behalf and represents a number of firms. The more you shop around, the better your chances of finding a deal on health insurance.
