Self-Employed Medical Insurance Premiums
Apr 27th, 2011
Here we go again and guess who becomes the one group of citizens to be hurt the most with the passage of The Patient Protection and Affordable Care Act? You guessed correctly, the self-employed entrepreneur is the one group of citizens who will be hurt and affected the most. Large corporations can utilize the new low-cost health insurance they provide for their employees as an annual deduction.
Most of the recognized small businesses with fifty or fewer employees will receive a tax credit towards the purchase of insurance coverage for their employees. There were discussions to take the self-employed entrepreneur into consideration before the passage of the affordable care. Sadly, it did not happen.
Considering most of we the people carry an affordable health insurance policy through a current employer, Medicare, or Medicaid at little or no contributory expenses that leaves the self-employed entrepreneur in a category of their own. This will continue to be the one group of individuals who are hit the hardest with high taxes.
The best option for the self-employed entrepreneur is to have a spouse. This way there is an opportunity for you to be covered by the insurance policy the spouse carries. You can also try to discuss the possible options of an affordable self-employed medical insurance premiums with an insurance agent. However, the self-employed individual still must consider the cost of the self-employment tax for Social Security that weighs heavily at a cost of over fifteen percent of receipts.
This additional self-employment tax under the guise of Social Security adds an additional burden to all individuals who want to begin a new self-employed business or attempt to remain in a self-employed business. The government certainly does have a knack of getting in the way.
Universal health care will make its way through the medical community and the insurance companies with the intent to change how we view much of our current health provisions. You have to ask yourself if it will be a better plan for all citizens. Employees who currently have a portion of their insurance deducted through pre-tax payroll deduction are responsible for taxes on the reduced income.
Employers are entitled to deduct the full amount of the cost for each individual health insurance they pay for their employees. It is time for all self-employed to be permitted to deduct their entire insurance expenses. When this is permitted, the additional money will roll back into the self-employed entrepreneurial business adventure.
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