How to Get Health Insurance for the Self-Employed

Finding health insurance for the self employed is a little easier than it used to be thanks to internet tools and online quotes, but the price may cause sticker shock to those used to employer-sponsored plans. Still, there are good values available and with high deductibles and health savings accounts, you might even pay less than with company health plans. Here's how to find health insurance for the self-employed.

Difficulty: Moderate

Instructions

1. 

   Look into high-deductible insurance plans, also called drastic coverage or major medical. The plans feature low premiums (usually under $200 a month for an average healthy family) but high deductibles (many are around $5,000 per incident). If you are able to save up the money for the deductible, even if it takes a little time, this is one of the best values in health insurance.

2. 

   Find out about full coverage, or "regular" health insurance options. Those with chronic conditions or who see the doctor frequently may need this option, even though it is more costly each month than a high deductible plan. There are options available for self employed individuals and their families, and you can receive quotes on the open market through corporate websites (such as Blue Cross-Blue Shield, Aetna, United). Be prepared for high monthly premiums, however.

3. 

   Combine a small group, such as your employees or business partners and their families, to qualify for a small group plan together. Costs are often slightly lower, and you can wrap the costs together and pay through your business account as a business expense and tax deduction. Get quotes through eHealthInsurance and HealthInsurance.org online.

4. 

   Research health care sharing programs, which are growing in popularity. Look for an established program with a good track record. Many are church-based or Christian, with members from across the country and even around the globe. Legally, medical cost-sharing groups are not considered health insurance plans. Thus, contributions can not be deducted as health insurance premiums. However, you can deduct the full cost of your medical expenses as allowed by the IRS -- even those paid by the money sent to you through the group. This is one of the best options for self employed health insurance, combined with drastic coverage for extensive medical costs.

[scottc136]

on 4/26/2009 The most important thing to do when shopping for insurance is to find a trusted broker who represents or at least has knowledge of all the companies and plans in your state. A good broker will be able to answer questions about every carrier and help you compare rates and benefits. Things to stay away from are captive agents such as NASE Mega Life agents. Not to step on any toes but, if you do your due diligence and research companies like NASE Mega Life you will find that their coverage is not comprehensive and is literaly setting you up for bankruptcy if you have to use the coverage. Do a simple google search and use the name of the company and use keywords like complaints, lawsuits, etc... A helpful website to visit would be www.campbellinsuranceconsulting.com. There you will get helpful information on all major medical carriers, run your own quotes and ask an experienced broker import

[rwhite-writer]

on 1/4/2009 I found very affordable health insurance with great co-pays, a prescription plan and vision care through NASE (National Association for the Self Employed). You must be a member of NASE, but at only $10 a month, it's been well worth it to find good health insurance I can afford!

[amylaine]

on 5/23/2008 Excellent article. Insurance is not cheap and can cost for a family as much as a house payment or more. If you have health problems the rates go even higher. 5 stars.

[danahinders]

on 5/18/2008 Great tips! As a self-employed writer, trying to find affordable insurance has been a nightmare for me.