Finding Health Insurance as a Solopreneur
Posted 17th April 2013 at 05:29 PM by Tier3Marketing
Updated 17th April 2013 at 05:33 PM by Tier3Marketing (Edited for formatting)
Updated 17th April 2013 at 05:33 PM by Tier3Marketing (Edited for formatting)
Working for yourself can offer many benefits. You don't have to maintain a set schedule, answer to an unreasonable boss, attend endless meetings, or put up with long, boring commutes. Becoming a solopreneur also allows you to determine your own income and choose the clients you want to work with. Unfortunately, working for yourself also comes with challenges, including finding and maintaining health insurance coverage.
Employees who work for large corporations typically have easy access to health insurance. In many cases, employers even pay a portion of the premiums to make coverage more affordable for employees. As a solopreneur, you do not have that luxury. You must find and obtain health insurance coverage on your own.
Even worse, individual health insurance is substantially more expensive than participation in an employer's group health plan. This is because an insurance company cannot spread its risk exposure over hundreds of employees. Instead, its entire risk exposure is determined by your health and personal medical history. This, coupled with a fact that you don't have an employer to subsidize your premiums, can make quality health coverage prohibitively expensive.
Fortunately, there are ways you can obtain the health insurance coverage you need while minimizing the impact of this expense on your wallet:
1) If your spouse works for a traditional employer, consider enrolling in your spouse's group health plan. You will typically pay far less than you would pay for independent coverage. Also, group health plans usually offer more robust benefits than individual policies.
2) Consider forming a limited liability company (LLC) with your spouse. In some states, LLCs are eligible for group health insurance plans. Because an LLC represents a small risk pool, you will still pay more than you would pay for group coverage; however, small business group plans are typically less expensive than individual plans.
3) Contact an insurance broker or independent agent to learn about available options. Independent agents and brokers might have access to rates and plans from dozens of different health insurance companies. This allows them to identify policies that might suit your specific needs. Some of these professionals might be able to help you secure coverage even if you have had health problems in the past. You can work with a broker or agent to compare prices and coverage levels before you submit an application.
4) Consider yearly deductibles, co-payments, and maximum coverage levels when shopping for health insurance policies. Individual policies commonly come with high deductible and co-payment requirements that can cost you a significant amount of money if you are injured or become ill. It is not uncommon for an affordable policy to come with a $5,000 yearly deductible and a 75/25 co-payment requirement.
Similarly, some policies impose yearly maximum coverage restrictions. For example, an insurer might limit claims payments to $100,000 per year. Some policies, which are designed to provide supplementary coverage, might have even lower yearly caps.
5) If you cannot find coverage because of pre-existing conditions or past health problems, consider applying to your state's high-risk pool. These pools typically provide coverage without regard to medical history or conditions. You won't receive the best coverage available; however, this can provide limited benefits until you secure a policy in the standard market.
Finding health insurance coverage as a solopreneur is rarely an easy task. If you previously maintained health coverage through an employer, the premiums you will pay for independent or small group coverage might shock you. By strategically structuring your business and using the services of local insurance professionals, though, you might be able to secure health insurance to minimize your financial risk.
Employees who work for large corporations typically have easy access to health insurance. In many cases, employers even pay a portion of the premiums to make coverage more affordable for employees. As a solopreneur, you do not have that luxury. You must find and obtain health insurance coverage on your own.
Even worse, individual health insurance is substantially more expensive than participation in an employer's group health plan. This is because an insurance company cannot spread its risk exposure over hundreds of employees. Instead, its entire risk exposure is determined by your health and personal medical history. This, coupled with a fact that you don't have an employer to subsidize your premiums, can make quality health coverage prohibitively expensive.
Fortunately, there are ways you can obtain the health insurance coverage you need while minimizing the impact of this expense on your wallet:
1) If your spouse works for a traditional employer, consider enrolling in your spouse's group health plan. You will typically pay far less than you would pay for independent coverage. Also, group health plans usually offer more robust benefits than individual policies.
2) Consider forming a limited liability company (LLC) with your spouse. In some states, LLCs are eligible for group health insurance plans. Because an LLC represents a small risk pool, you will still pay more than you would pay for group coverage; however, small business group plans are typically less expensive than individual plans.
3) Contact an insurance broker or independent agent to learn about available options. Independent agents and brokers might have access to rates and plans from dozens of different health insurance companies. This allows them to identify policies that might suit your specific needs. Some of these professionals might be able to help you secure coverage even if you have had health problems in the past. You can work with a broker or agent to compare prices and coverage levels before you submit an application.
4) Consider yearly deductibles, co-payments, and maximum coverage levels when shopping for health insurance policies. Individual policies commonly come with high deductible and co-payment requirements that can cost you a significant amount of money if you are injured or become ill. It is not uncommon for an affordable policy to come with a $5,000 yearly deductible and a 75/25 co-payment requirement.
Similarly, some policies impose yearly maximum coverage restrictions. For example, an insurer might limit claims payments to $100,000 per year. Some policies, which are designed to provide supplementary coverage, might have even lower yearly caps.
5) If you cannot find coverage because of pre-existing conditions or past health problems, consider applying to your state's high-risk pool. These pools typically provide coverage without regard to medical history or conditions. You won't receive the best coverage available; however, this can provide limited benefits until you secure a policy in the standard market.
Finding health insurance coverage as a solopreneur is rarely an easy task. If you previously maintained health coverage through an employer, the premiums you will pay for independent or small group coverage might shock you. By strategically structuring your business and using the services of local insurance professionals, though, you might be able to secure health insurance to minimize your financial risk.
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