Self Employed Health Insurance Options
Jan 16th, 2012
Being self-employed has its advantages and disadvantages. on the one hand you can be living your dream of working for yourself, yet it can be difficult to provide a proof of income, thus giving you a hard time to qualify for loans or purchase health insurance. There are many types of self employed health insurance options available, people can use various online tools to find the right health insurance to suit them. The first step many people take when leaving their jobs is to continue with the insurance program their former employer offered. Leaving work in order to become self-employed carries a lot of risks, you will be facing many responsibilities you need to deal with accordingly.
Common Self Employed Health Insurance options
When becoming self-employed, many people use COBRA coverage in order to continue with the employer-sponsored health insurance. COBRA or Consolidated Omnibus Budget Reconciliation Act is a form of health insurance that lets former employees maintain the health insurance coverage received during employment. Some self-employed individuals will find it difficult to keep up with COBRA payments. COBRA can be extended up to 18 months, giving people plenty of time to look for other more appropriate health insurance plans.
Aside from COBRA, self employed health insurance options for individuals can often be purchased private insurance companies. The self-employed will find it easier and more affordable to purchase health insurance plan when they and members of their family are healthy. Single self-employed individuals without a dependent will have an even easier time to find affordable health insurance. If you have a family, you might want to find a self-employed health insurance policy that has a wide array of options.
When you go for a health insurance policy that offers flexible options, you will have an easier time to find the proper coverage for family members who will be included in the policy. To find the right policy, you will need to know how much coverage you will actually need to provide for your family members. A self-employed individual with a preexisting health condition might be at risk of being denied health insurance coverage.
Self Employed Health Insurance Options for those with Pre-Existing Conditions
If you have a preexisting condition, it is a good idea to stick with COBRA insurance plan so you will have enough time to look for a proper health insurance policy you can qualify for. If you are married, you can be covered through your spouse’s health insurance policy if his or her employer provides health insurance. Families with both parents working will have more options when it comes to purchasing the proper health insurance and having sufficient health coverage. Self-employed individuals should know that each state handles health insurance policies differently.
State Specific Self Employed Health Insurance Options
In some states, like New York, guaranteed-issue health insurance policies are available. In essence, guaranteed-issue health insurance is a policy that insurance companies must follow. According to the regulation, the insurance company must provide coverage regardless of the individual’s health condition. One of the biggest advantages of having a self-employed health insurance is the ability to categorize your paid premiums as deductibles.
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