Congratulations on trying the world a freelancer, an independent contractor, or a small business owner! It’s a great world.
It is, however, a world where good affordable medical insurance can be tough to find. The good news is that some breaks are available and that decent coverage can be found with a little due diligence.
If you’re self employed, you’ll be able to deduct 100 percent of your health insurance premiums. This deduction is a good one because it’s an above the line deduction. This means you can take advantage of it even if you don’t itemize.
Self Employed Choices
Before you begin your search for medical insurance, consider your situation carefully:
Speaking of group coverage, if you’re coming from a job where you had group coverage, you might need some medical coverage to fill a gap.
When you exhaust your gap coverage, you need to begin seeking longer term medical expense insurance. Following are some options to consider:
High Deductible Policies with a Health Savings Account- This combination can help you save tax free money you can use for health related expenses and protect you in case of a catastrophic illness or injury.
Health Maintenance Organizations (HMO)- These will provide comprehensive health care with copayments. You’ll have to use doctors that belong to the HMO.
Preferred Provider Organizations (PPO)- This coverage allows you to see any provider in your network. If you go out of the network, coverage may be limited and you’ll pay more.
Major Medical Insurance- With this traditional insurance, you can go to any doctor or hospital you like.
With any of the plans, your premium will be affected by the following three factors:
Raising these will result in lower premiums. But make sure you can afford the price.