By Dr. Kavita
Being self employed may seem like a dream come true because you need not be answerable to anyone and do not have a boss to boss you around. But after you settle down after the initial euphoria, reality dawns and it suddenly strikes you that you now have to arrange for your own health insurance. And doing that is not an easy nut to crack.
But don’t worry, I have put together four ways to find health insurance when you are self employed and on your own:
Get on your spouse’s health insurance plan
Spouses are meant to be there during both good and bad times, especially when you need support. The best and the first option for you is to try and get on your spouse’s health insurance plan because this is also the cheapest option for you at this moment. But you need to have the good fortune of having a spouse who is enrolled in a health insurance plan sponsored by his/her employer to get this benefit. On second thoughts, you actually need to have a spouse before you can think of this option.
Start an HSA account
This actually is not an insurance cover per se, but it goes a long way in covering your health care expenses. HSA or health savings account is a personal account, which allows you to set aside certain amount of money each month. The best part about this kind of savings is that it comes with a lot of tax benefits. If you use this money to fund a qualified medical treatment procedure, then you will not be charged any tax on that amount. You can also deduct tax for the amount of money that you are contributing in to this account.
Another advantage with the HSA is that you can also use it to fund your health insurance premiums in case you opt to buy one at a later date.
Try group or association health insurance plans
You can try using any of your groups or associations that you are a member of, in order to get group coverage for your health insurance. The best part about group coverage is that you will not be denied insurance cover in case you have a health condition. There are so many groups that you can try getting coverage with like your college alumni group or maybe your local chamber of commerce. The best option to search for groups is to approach the National Association for the Self-employed.
Individual health insurance plans
These work only if you are hale and hearty and have no health disorders at the time of buying the insurance. Pre-existing medical disorders are a strict “no no” for this kind of insurance. But as government regulations change and advance, rules may loosen on this front.
Other than finding ways to insure yourself, you should also be aware that self employed people qualify for tax breaks for the money spent on health expenses.
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