Health Insurance for The Self-Employed

Those that are self employed often think that having health insurance is something that is simply out of their reach. And the reasons for this is that they are not aware that there are health insurance plans out there that are going to allow the person to have health insurance for themselves and their family, if they need it, at affordable prices that most anyone can afford. When the person is becoming self employed, they will find that there are many options for them to use in order to get their health insurance. One such option that they have when quitting their current job and going to being self employed, they will find that they can extend the health insurance coverage that they have through their current employer. This is something that is rarely known by those that are in this situation, but is a good decision to make for many people. The person will find that the Consolidated Omnibus Budget Reconciliation Act of 1985 is an act that is going to allow the person to do this for up to eighteen months after they leave the company. However, the downside of this is that the person is paying the full cost of the health insurance since the employer is not required to pay for their employer portion any longer.

Another option for those that are married and are going to become self employed is to get on their spouses group health insurance plan, if this is an option for them. They will find that this can save them money in the long run since the costs of group insurance plans are much more cheaper than individual plans. Plus, if they have a pre-existing condition they will find that through this option they can get the coverage that they need without paying the high price or getting denied in many cases. If this is not an option, the person is still not out of luck when it comes to getting health insurance since they are self employed.

The other option is to buy an individual plan for you or a plan that will also include your dependents should you need this as well. The problem with doing this is that you are going to find that you will pay more in the long run since you are considered to be your own employer, and consider the fact that it will only be one person on the policy, rather than getting the cost benefits of being on a group plan. The cost of the individual health insurance plan is going to vary. And there are many factors that will affect this.

For one, the person should realize that if they have a clean medical history that they are going to get a lower rate that is being offered out there. However, if they have problems, they can expect to pay for this in the health insurance that they are getting. One of the cheapest routes to go in order to get the health insurance that is needed is to buy an underwritten policy that is offered on the open market. These are statistically always costing lower than other policies that are out there and so forth. The person will find that these are relatively easy to get as long as they have a good medical history.

Another aspect that the person needs to consider is the fact that some states are what are called, 'guaranteed issue' states, which means that the person must get a fair offer of health insurance and its price no matter what their health history is, whether it is good or bad. For those that live in these select states, they will find that this can mean getting insurance is much easier, though their rates may not be as low as they had hoped since they are paying for the fact that even those that are in bad health are able to get the health insurance that they need.

The good news for those that are self employed and end up getting health insurance is that they can get deduct some of the cost of the health insurance off of their taxes, which can help them to save money in the long run. However, before counting on this to offset the costs of the plan, the person should be sure that they understand everything that the deduction requires and all the fine print of being able to deduct this.