Finding health insurance as a freelancer or young entrepreneur can be a bit tricky, but it’s definitely possible. As a self-employed individual, you don’t have the option of employer-sponsored health insurance, so you’ll need to explore other avenues. Here are the steps you can take to find the right health insurance for your needs:
1. Explore Health Insurance Through the Health Insurance Marketplace (ACA)
- What is it? The Health Insurance Marketplace (also known as HealthCare.gov) is a government-run platform where individuals and families can shop for health insurance plans. As a freelancer or entrepreneur, you’re eligible to buy insurance through the Marketplace.
- Why it’s a good option for freelancers:
- Subsidies & Tax Credits: Depending on your income, you may qualify for subsidies or tax credits that can make insurance more affordable.
- Variety of Plans: Marketplace plans range from lower-cost catastrophic coverage to more comprehensive plans, depending on your needs and budget.
- Open Enrollment Period: You can only sign up for a Marketplace plan during open enrollment (usually in the fall) unless you qualify for a special enrollment period (e.g., if you lose coverage or move to a new area).
- Essential Health Benefits: Marketplace plans must cover essential health benefits like emergency care, preventive services, and mental health care.
- How to get started: Visit HealthCare.gov or your state’s marketplace website and fill out an application to see if you qualify for subsidies and compare plans.
2. Check If You Qualify for Medicaid
- What is it? Medicaid is a state and federal program that provides free or low-cost health coverage to people with low incomes. Each state has different eligibility rules, so it’s important to check your state’s guidelines.
- Why it’s a good option for freelancers:
- Affordable Coverage: If your income falls below a certain level, Medicaid may be available to you. In some states, Medicaid eligibility extends to those earning up to 138% of the federal poverty level.
- Comprehensive Coverage: Medicaid provides full coverage, including hospital visits, doctor’s appointments, and prescriptions.
- How to get started: Visit your state’s Medicaid website or HealthCare.gov to check if you qualify.
3. Join a Freelancer or Entrepreneur Health Insurance Group
- What is it? Some groups, associations, or trade organizations offer health insurance plans for their members. By joining one of these organizations, you may gain access to better rates and coverage through group health plans, similar to what larger employers offer their employees.
- Why it’s a good option for freelancers:
- Group Coverage: These plans often provide more affordable rates because they pool many freelancers or small business owners together to negotiate better rates with insurance companies.
- Access to Specialized Plans: Some groups offer plans tailored specifically to the needs of freelancers or entrepreneurs.
- How to get started: Look into industry-specific associations or local entrepreneur networks that may offer health insurance benefits. Examples include the National Association for the Self-Employed (NASE) and Freelancers Union.
4. Consider Short-Term Health Insurance
- What is it? Short-term health insurance is a temporary plan that provides basic coverage for a limited period, typically 3 to 12 months. It’s designed for people who need immediate coverage or are in between insurance plans.
- Why it’s a good option for freelancers:
- Lower Premiums: Short-term plans tend to have much lower premiums compared to traditional plans. However, these plans often offer less comprehensive coverage.
- Quick Enrollment: If you’re looking for something temporary or you missed open enrollment, short-term insurance can fill the gap.
- How to get started: Research short-term health insurance providers and compare the plans they offer. Be aware that short-term plans typically don’t cover pre-existing conditions, and coverage for essential services like maternity care or prescription drugs may be limited.
5. Look into Direct Purchase from Insurance Providers
- What is it? Some insurance companies allow individuals to purchase health insurance directly from them, outside of the Marketplace. These plans are often similar to those offered in the Marketplace, but without the subsidies that come with Marketplace coverage.
- Why it’s a good option for freelancers:
- Flexibility: You can choose from a variety of plans based on your healthcare needs, from basic plans to more comprehensive coverage.
- No Middleman: Purchasing directly from the insurer may provide a more streamlined process without the need to navigate through a third-party platform.
- How to get started: Contact major insurance providers (like Blue Cross Blue Shield, Aetna, or UnitedHealthcare) to inquire about individual plans available for freelancers.
6. Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs)
- What is it? An HSA is a tax-advantaged savings account that helps you save for medical expenses. If you pair it with a high-deductible health plan (HDHP), you can contribute pre-tax dollars to your HSA and use those funds to pay for healthcare expenses.
- Why it’s a good option for freelancers:
- Lower Premiums: HDHPs often have lower monthly premiums than traditional health insurance plans.
- Tax Advantages: Contributions to an HSA are tax-deductible, and withdrawals for qualified medical expenses are tax-free.
- Flexibility: You can roll over HSA funds year after year, giving you a growing healthcare savings account.
- How to get started: Look for insurance providers that offer HDHPs paired with HSAs. You can open an HSA account through a bank, credit union, or financial institution.
7. Consider Catastrophic Health Plans
- What is it? Catastrophic health insurance is designed for young, healthy individuals who want to protect themselves against major health events without paying high premiums. It covers essential health benefits after a high deductible is met.
- Why it’s a good option for freelancers:
- Low Premiums: Catastrophic plans have very low monthly premiums, making them a good choice if you’re mostly healthy and want protection in case of major illness or injury.
- Essential Coverage: These plans still cover preventive services and three primary care visits per year before the deductible is met.
- How to get started: Catastrophic plans are available through the Health Insurance Marketplace for people under 30 or those who are exempt from other coverage options.
8. Check If You Qualify for COBRA
- What is it? COBRA allows you to continue your employer-sponsored health insurance after leaving a job, including for freelancers or entrepreneurs who may transition from a part-time or full-time role.
- Why it’s a good option for freelancers:
- Temporary Coverage: If you were previously employed and had health insurance, COBRA allows you to maintain the same coverage for a limited time (up to 18 months).
- Familiar Coverage: You’ll keep the same insurance plan that you were previously on, so there’s no need to adjust to a new provider.
- How to get started: You’ll need to reach out to your former employer’s HR department for COBRA information.
Conclusion:
Finding health insurance as a freelancer or young entrepreneur can be a bit more involved, but with the right tools, you can find an affordable option that fits your needs. Whether you go through the Health Insurance Marketplace, join a freelancer group plan, or explore short-term insurance, there are several options to make healthcare coverage accessible and affordable. Just be sure to carefully compare premiums, coverage, and any financial assistance you might be eligible for to make the best decision for your health and budget.
