A large part of the large debts, especially those that lead to bankruptcy, is at least partly caused by large medical bills that could not be paid. To prevent us from getting into this situation, most of us want to take out health insurance for ourselves and our families, but the options can be much more expensive for the self-employed. Here are some of the options that you may want to explore:
1. Continue with your COBRA coverage
Assuming that you did not leave your previous job due to gross errors, you can continue your current coverage via COBRA for 18 months after you become self-employed. However, you have to pay both the employer’s part of the plan and yours, so it’s not a cheap option. In addition to being expensive, it is only a short-term option, but it can save you the hassle of finding a new option immediately after becoming independent.
2. Combine an HSA with a High Deductible Health Plan
With this option you can pay tax free tax in a Health Savings Account (HSA) to finance medical expenses that are not covered by your high deductible plan. This can work well if you are relatively healthy, since it is likely Nikko Harvey that your high deductible plan will cover large expenses (for example if you had a heart attack), so you will need the money in your HSA to cover almost anything else otherwise. That is why it is wise to have a lump sum amount ready to deposit in an HSA if you have medical expenses soon after you enter employment. If you are not in a good position to pre-finance an HSA, this may not be the best option for you. Read my article about HSAs and whether they are suitable for you.
3. Look for part-time work with health insurance benefits.
This will not be a particularly viable option, because there aren’t that many employers who offer health insurance benefits to part-time employees, but if you can find one that does, there is the option to fit in part-time. work around your independent activities to take advantage of the benefits of health insurance.
4. Become a member of associations and trade unions.
You can often take out a collective health insurance policy if you are a member of professional associations or trade unions. In most cases this costs less than a health insurance policy through COBRA, but it can still be a relatively expensive way to get health insurance if you work as a self-employed person.
5. Insure yourself.
If other options don’t work for you or just don’t seem attractive enough, you can look at self-insurance instead. Instead of paying insurance premiums to an insurance company, take everything you would have paid and place it in an easily accessible account, preferably one with good interest. The most important thing is that you can achieve it if and when you need without incurring fines. When a healthcare or medical expenses arise, you simply withdraw so much money that you need and you pay yourself a “premium”. This can be a good option if you are in good health and do not have many health-related costs because it means that you can pay exactly what you need.
6. Shop around.
It pays to shop around if you want to take out individual health insurance, because there can be big differences between premiums. Good places to look are eHealthInsurance and health insurance.
Not having health insurance can be an incredibly expensive mistake and in some areas you may not be treated at all if you do not have any insurance. Taking out health insurance if you work as a self-employed person can be difficult, but it is not impossible, because there are options for you. Do not gamble with your health if you are self-employed. At least get a policy that is affordable and cover you for catastrophic events.
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