Entrepreneurship has been significantly on the rise over the past few years, and for good reasons. Many among the younger generations aren’t satisfied with regular 9 to 5 jobs, and they keep trying to find more meaningful alternatives. So, some start their own businesses in the hopes that their companies would grow to be a success. Others become freelancers and enjoy the perks of working remotely. While those options come with a ton of perks and benefits, they also come with a few downsides. The biggest of those complications is not having health insurance since you’re self-employed. Needless to say, having health insurance is not a luxury but a necessity. Here is how you can get health insurance as an entrepreneur:
COBRA stands for The Consolidated Omnibus Budget Reconciliation Act, which means you can keep using your health plan from your previous employer as an entrepreneur. This law states that you can have continued coverage for an extra 36 months if you qualify and your circumstances are good.
While this is a great option and would save you some time and effort, you should know that it is a more expensive option than some of the alternatives. So, you need to carefully consider it from all angles and find out if this is the best course of action right now.
Find a Marketplace
You need to find a marketplace so you can purchase a health insurance policy as a self-employed individual. You will find that there are plenty of options for entrepreneurs, and you just need to find a plan that works for your needs. You should take your time shopping around for a plan, though, because you need to get the best benefits possible.
As explained by the insurance specialists from NowHealth, there are plenty of affordable health insurance options that you could try as an entrepreneur. Some plans offer premium tax credit and various saving options, but your income will be taken into consideration first. You need to get the coverage that suits your needs and can cover you in case you suffer from any medical complications.
Consider Short-term Health Insurance
If you are just trying out freelancing for a while, you might want a less demanding health insurance plan –– you should get it nonetheless because serious injuries and health complications could still arise in the few months you’re taking away from full-time work.
In any case, short term health insurance plans are much cheaper than your average long-term plans, but the coverage isn’t as great as you would expect from a cheaper service. You might also be denied such plans if you suffer from chronic conditions because you would be too much of a risk for the company.
The great thing about being a freelancer is the fact that you’re not alone. There are others like you, and there are even associations that offer benefits to their members, including some health insurance coverage. So, if there is some form of entrepreneurial association for your industry, you should definitely ask on how to join and whether or not they have some form of health insurance.
It could prove to be very useful, at least until you get an individual policy. But make sure you do the math first because you will be paying membership fees plus the health coverage. So, is that cheaper or more expensive than getting an individual plan? Take it slow and figure out which option is best, but keep in mind the fact that such association memberships offer other benefits, not just health insurance.
Professional Employer Organizations
PEOs are outsourcing organizations that provide a myriad of outsourcing services to small and medium-sized businesses, including accounting and payroll services, but they also provide health insurance coverage in some cases. It might be an additional benefit after getting some of the aforementioned services, though. So, make sure you ask first on what it takes to get that health insurance plan, and whether or not you will need additional services to get it. Your business might actually stand to benefit from outsourcing services like payroll and accounting, and you could save a lot of money since you won’t need as much manpower –– a pretty good option for a young startup still figuring out its finances.
Long story short, you have plenty of options to get health insurance as an entrepreneur. While they might cost you more money than if you were working for an employer who pays for that coverage, that is the price you pay for being self-employed –– it is definitely worth it. Just make sure you shop around until you can find a convenient plan with comfortable benefits.
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