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Self Employed Health Coverage - Options For The Entrepreneur

Posted on 11 July 2011

Medical coverage is something that an entrepreneur cannot afford to skimp on, or bypass altogether. But choosing between the available self employed health insurance plans can be a bit confusing if you don’t understand what you are looking at. To the normal entrepreneur that isn’t well versed in health coverage, the self employed health insurance plans that are presented to them can be like trying to read a foreign language. Fortunately, with a little education, it doesn’t have to be this way.

When it comes to entrepreneurial health insurance, there are a couple of options - you can get coverage just for yourself, or you can get coverage for you and your employees (assuming you have any). Reuters has a good article about your options when it comes to group health coverage for you and your employees, outlining the steps you should take when it comes to finding the best health plan. Below, we will talk about some of your options when it comes to finding coverage just for you, and possibly your immediate family members.

Health insurance for self employed plans are nothing more than the same type of coverage that one would purchase if they were looking for coverage for themselves and/or their families because they didn’t have coverage through an employer. In other words, just because you are working for yourself, doesn’t mean that you are necessarily eligible for some super-secret health insurance for self employed plan only available to entrepreneurs. Of course, like so many things in life, there are exceptions to this rule where you are actually eligible for plans that non-entrepreneurs might not be eligible for. More later.

Self employed insurance coverage comes in a couple of different flavors, depending on how many people need coverage. There are individual coverage plans that offer health insurance for just one person - the named insured. There are also family plans that offer coverage for the primary insured and their spouse and/our eligible children. These self employed insurance options are identical to what a person out of work, or not receiving coverage from an employer, is eligible for.

There are many reputable health coverage providers offering individual or family plans. The best thing to do is decide on how much coverage you need and what you are willing to pay out of pocket for medical care. This means you need to decide if you really need maternity coverage, a prescription plan, etc, or if you can save some money (sometimes quite a bit) by just getting coverage for general medical issues, as well as large medical issues. You will also need to decide what annual deductible level you are willing to pay, which is the amount you pay out of pocket before your health plan kicks in each year.

One of the best options to keep health plan premiums down is to select a high annual deductible plan that is Health Savings Account eligible. A Health Savings Account, or HSA, is a way for you to put away money in an interest bearing account for future medical expenses. Generally you will pay your portion of the deductible, as well as miscellaneous, eligible medical expenses, with your HSA account, which is pre-tax funded. You have a maximum amount you can contribute each year to your HSA, with the 2011 limits at $3,050 for an individual plan, and $6,150 for a family plan. What HSA money isn’t used for medical expenses continues to grow tax free and is eligible to be used for retirement purposes once you hit a certain age.

Now about the exception to the rule that was discussed earlier. Another medical insurance for self employed option is group health coverage, even if you don’t have any employees. How is this possible? You might be eligible for membership in a professional organization that offers group medical coverage to its members. This is (sometimes) a good way to get affordable medical insurance for self employed coverage. Definitely something worth looking into and comparing against other available options.

When you are an entrepreneur, you are the person in charge. You cannot afford to ignore medical issues that have the potential of putting you out of commission as your business will suffer. Make sure you have the right self employed health coverage to help pay for any medical issue that crop up, allowing you to quickly get well and back working on running your business.

Related posts:

  1. Self Employed Health Plan Options
  2. Medical Insurance For Self Employed Individuals - Some Options
  3. Self Employed Health Plans - Options In Ohio
  4. Self Employed Medical Insurance
  5. Shopping For a Self Employed Health Plan
Category : Health Insurance

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