Health Insurance for Self-Employed People

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Health Insurance for Self-Employed People

The Affordable Care Act makes it mandatory for everyone to have health insurance or pay a penalty. So it is imperative that you have some kind of health insurance coverage. Most employers are obligated by law to provide reasonable health insurance options to their employees unless it is a very small company. There are a large number of people who are self-employed, like independent contractors, artists, freelancers or consultants. Since they do not work for any employer it is up to them to arrange for their own health insurance coverage.

Following Options of Health Insurance

  • The first and most suitable option is getting a health insurance policy through the health insurance exchange. The health marketplace has several insurance companies with various types of plans – low cost plans with limited benefits or high-deductible plans etc.
  • Persons with low incomes can qualify for Government funded medical insurance programs like Medicaid or CHIP.

This applies to only when you are a self-employed person, that is, you have no other employees working in your business. You can have a family member working for you other than yourself. If there is at least one other employee, you will fall under the category of small business owner and can apply for health coverage through Small Business Health Options Program (SHOP). The health insurance marketplace has specific health insurance plans for small business owners which are affordable and convenient. A huge number of self-employed and small business owners have been able to find reasonable health insurance options through the health insurance exchange.

Health Insurance Marketplace Plans

When you buy a health insurance plan through the health marketplace you may be able to receive some savings. The premiums on marketplace plans can be reduced by using the tax credits available based on your income and size of your household. During the application process, you have to declare an estimate of your earnings during the year in which coverage is needed. This estimate along with the number of people in your house will decide how much tax benefit you are eligible for. You can find out how to calculate your expected income and how much savings you can qualify for.