How to Compare Self Employed Health Plans

Evaluating self employed health plans is important before you pick one you like. With the rising costs of health care, virtually all health insurance plans have increased as well. However, there are many options available to the self-employed, and you can easily buy a health insurance plan on the open market. Having good insurance coverage makes financial sense, no matter your needs. Here's how to compare self employed health plans.

Difficulty: Moderately Easy

Instructions

1. 

   Find out the deductible for each plan. Some health insurance plans are all-encompassing and have low deductibles but high premiums. You'll pay a deductible or co-pay for each incident, but your health insurance will cover the bulk of your medical costs. Other plans offer high deductibles with low monthly premiums. For example, you pay only $100 a month but insurance doesn't kick in until you spend $5,000 out of pocket for a medical incident.

2. Compare insurance caps, or the maximum the plan will pay per incident, per person, and for the lifetime of the policy.

3. Learn what is covered through the health insurance plan and what is not. Many might not include maternity benefits, while others require an additional rider policy for dental needs.

4. Figure out how much each plan costs and balance that against what is offered. Often, you'll be comparing apples and oranges and will need to account for the differences. The best plan for you will vary depending on your needs. People with a good amount of savings and low medical expenses may prefer high deductible plans, while those with young families might need more involved coverage.

Tips & Warnings

• Consider using a medical sharing group for your self employed health plans needs.

[amylaine]

on 5/23/2008 Great info.