Cheap Individual Health Insurance

The idea of finding your own health insurance can be quite overwhelming–perhaps that’s why the majority of those without health insurance in America are those who are self-employed. However, living without health insurance is not worth the risk–in fact, over sixty percent of bankruptcies in America are the result of medical bills. However, there are actually a number of options for those looking for health insurance for the self-employed.

If you are transitioning from traditional employment to self-employment, the best option is to make use of the Federal Consolidated Omnibus Budget Reconciliation Act (COBRA). This act requires all employers with twenty or more employees to make the company’s group insurance option available to all employees at the employee’s expense if they leave the job. Since group plans are often much cheaper than individual rates, using the COBRA can provide substantial short term savings, and can be used up to eighteen months after you leave the job.

Additionally, a number of insurance companies offer health insurance for the self-employed. It is sometimes more difficult to get health insurance coverage if you are self-employed, particularly if you have pre-existing medical conditions, but it is by no means impossible. When buying individual health insurance, it pays to shop around. You should consult a number of different companies about the kinds of health insurance they offer for the self-employed, and read all the conditions very carefully–in a group health insurance plan the risk is shared, while in heath insurance for the self-employed, the risk falls all on one person. This being said, there are a good number of health insurance plans out there for self-employed individuals; some states even offer health insurance for the self-employed. When evaluating these plans, you should make sure that they are a good fit for you–for instance, some plans can be personalized to cut out some benefits that you may not need, like maternity coverage, if you are a man.

While it is difficult to get health insurance if you are self-employed and have a pre-existing health condition, it is not impossible. A few states offer what is called “guaranteed issue” insurance, which means that companies in that state must offer people the option to purchase insurance regardless of pre-existing conditions. However, only a few states offer guaranteed issue insurance, and such plans sometimes come with additional restrictions. However, there is some good news for those with individual health insurance–those who are self-employed can deduct their health insurance premiums from their federal taxable income, as they are considered a business expense.

With the number of options available, it is easy to be overwhelmed, but there are a few good places to start. For more information, you can contact your state insurance department, which can provide local information. However, the quickest and easiest way to get more information about health insurance for the self-employed is to use the internet. Many sites can offer free personalized quotes, and you can easily compare companies to see which option works best for you.