Health Insurance for Freelancers: Essentials to Consider Now

Health Insurance for Freelancers: Essentials to Consider Now

Do you need health insurance for freelancers or self-employed individuals? The short answer is yes.

The detailed answer depends on your location. Some countries have public health programs that all can contribute to and benefit from free health assistance upon need. In other places, health insurance is the only option that will allow access to reliable medical assistance.

Choosing the type of insurance and amount of coverage depends on several things. Your income, your age, your current health status all matter. The following guide will outline the choices and give you a better idea about how to pick the healthcare service that makes the most sense.

Health Insurance for Freelancers: Available Options

Depending on country and nationality, you’ll have various health insurance options to choose from.

Freelancers in the US, for example, could be eligible for one or more of the following options:

  • Affordable Care Act (ACA): This is a governmental program, allowing previously uninsured individuals to discover coverage aligned with their income and their healthcare needs. In some instances, a part of the insurance can also be subsidized to reduce the cost. The availability of subsidies depends on household income, no access to affordable coverage through an employer, being ineligible for other programs like Medicare and Medicaid, having US citizenship, etc.

  • Consolidated Omnibus Budget Reconciliation Act (COBRA): When you leave a company that has given you access to medical insurance, you have the right to have that coverage extended for a certain period of time. Usually, the period is up to 18 months, as long as you continue making the premium payments.

  • Your significant other’s insurance: Spousal insurance is a viable option for freelancers to consider. If your spouse is employed and they’re offered an insurance plan through their place of work, you can be added to that policy. Depending on the insurance, it’s possible to get added for free. Alternatively, you’ll have to make a certain contribution in order to benefit from the coverage.

  • Insurance through the Freelancer’s Union: The Freelancer’s Union has an insurance plan that is tailored to the needs of self-employed individuals. As of now, this type of coverage is only available in some states. Check details on the website of the Freelancer’s Union to find out if the option is available where you live.

  • Private insurance: If you don’t have access to all these other options or you can’t qualify for them, private insurance will be the way to go. Many companies offer health insurance with varying degrees of coverage. When choosing such insurance, you’ll need to compare policies side by side to identify strengths, weaknesses, and the best price-to-quality ratio.

Alternative Options to Consider

The options mentioned above are some of the most popular but alternatives do exist.

First, check your eligibility for the types of insurance we’ve already mentioned (or an equivalent that’s being offered in your country). If you are still not completely happy with the coverage and the amount you’ll have to spend on your insurance, a few alternatives may be a viable option for you:

  • A health savings account: This one is a very simple approach but it can prove very effective in the event of a medical emergency. A health savings account is usually made available with a high-deductible insurance plan. The HSA allows for the coverage of medical expenses that aren’t covered by any other type of insurance you have.

  • Registering a company and getting insurance through it: Eventually, most freelancers register their own company. The step gives them taxation benefits that aren’t readily available for self-employed individuals. If you’re thinking about making the switch, you could also consider getting health insurance through your business instead of as an individual. Various types of affordable coverage options are available for small businesses that individuals don’t really get access to.

  • Medical subscriptions: Some medical centers, clinics, and offices have subscription-based plans. Paying a certain amount each month gives you the opportunity to access the center’s services immediately upon necessity.

  • Paying cash for medical needs: This one is the worst-case scenario because it’s going to be the most expensive one. If you are a fairly healthy individual and you’re still in the process of choosing health insurance for freelancers, this one could work for a certain period of time. We recommend not turning it into a permanent thing, however.

How to Choose the Best Health Insurance as a Freelancer

You need to consider a few important things when choosing health insurance for freelancers.

First of all, the cost of the premium is vital. Can you afford the particular premium as a freelance professional? You need to keep in mind the fact that you don’t earn the same income every single month. The premium you choose should be suitable for a worst-case scenario. That scenario is a month during which you don’t earn a lot and you’re still capable of covering all expenses.

The co-pay for office visits, specialist consultations, and other medical services will also have to be examined. That’s another out-of-pocket expense you’ll be responsible for when you pick the respective insurance.

A few additional elements that are also important include:

  • The availability of coverage for prescription drugs and how much it is on an annual basis
  • Whether the plan includes dental care
  • Whether the plan features pregnancy benefits
  • The inclusion of your doctor or a clinic of preference in the insurance network
  • Prevention and prophylaxis coverage or discounts

In other words, you shouldn’t be paying attention only to the amount you’ll be spending on the insurance. Sometimes, spending a bit more upfront can help you save a lot of money in the future (especially in the event of needing extensive medical care due to illness or an accident).

Here’s How to Find the Best Health Insurance Option

If you’ve never shopped for health insurance before, you’ll probably find the terminology and the aspects of choosing the right plan difficult to understand.

Do take some time to educate yourself on policies, how they work, what you are spending money on, and how much you’ll have to contribute further in case of a medical need arising.

You can do a few more things to discover the best insurance plan:

  • Turn to several insurance agents and ask for quotes. The more quotes you have to compare side by side, the easier it will be to make up your mind
  • Look at marketplace options first (the federal government’s health insurance marketplace is a central hub for individuals who can’t get insurance through an employer)
  • Join a union or an organization that offers health insurance as one of the membership perks
  • Find out if you qualify for premium tax credits or other kinds of financial assistance to help you cover the cost of health insurance
  • Look for discounts – there are policies out there that give you access to discounts, especially if you have another kind of insurance with the respective company or a family member is insured

Think about the Future When Shopping for Insurance

If you’re young, active, and healthy right now, you’re probably underestimating the importance of having good health insurance.

Shopping for such policies, however, is an investment in the future.

This is especially important if you intend to continue being self-employed until the end of your career. Making the smart choice now will give you access to affordable healthcare in the future when you will need such services a lot more.

Take your time and don’t rush the decision. While opting for minimal coverage right now may be tempting, the approach will backfire in the future. Also, young people aren’t safe from accidents. You never know when an emergency will occur. There is a risk of being incapable of accessing adequate medical care because of insufficient coverage.

Final Thoughts

Health insurance for freelancers isn’t something you should rush into getting as soon as you become self-employed but it’s important. Don’t postpone the decision a lot because you’ll eventually have to start planning for the future.

Many of the tips and suggestions mentioned in this guide apply to freelancers in the US. Other countries ofen have similar programs, discounts, and opportunities.

If you are completely clueless about getting started, talk to a consultant. Their job is to outline your choices, presenting the pros and cons of each. Together, you’ll find it easy to identify the best price-to- quality ratio, resulting in the acquisition of the best type of coverage.

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