Health Insurance for Self-Employment – Compass Insurance Advisors
  • Finding health insurance for self employment can be daunting. My goal in this article is to help you understand the cost of qualified health insurance, how to save money on health insurance, and other potential solutions for affordable health insurance.

    Cost of Qualified Health Insurance for Self-Employment

    My clients have an average health insurance premium per person of roughly $395 per month. Most self-employed individuals will qualify for savings, but $395/person is the average full cost of a plan. This consists of $0 deductible plans, high deductible plans, and everything in between. Regardless of the kind of plan they have, this can be a lot to justify. This average cost per person would mean that a family of 5 (2 adults, 3 kids) would be paying $1,975. That’s another house payment! The best way to offset this cost is to see if you qualify for the Assisted Premium Tax Credit to make the net cost as affordable as possible.

    How to Save Money on Health Insurance

    Most self-employed individuals/families will qualify for an Assisted Premium Tax Credit (especially with the new changes in the ARP Act). Advanced Premium Tax Credit is simply a government subsidy that can only be used towards the monthly premium cost of a qualified health plan. My average client qualifies for $379 tax credit which means that my average client’s net cost per person is $16 per month.

    What if you are a high income earner and don’t qualify for the tax credit? If you have pre-existing conditions, then you are probably okay paying the $395 per person per month cost for a qualified plan (which covers pre-existing conditions). This could be your monthly cost due to your medical costs being higher than the premium you are paying. However, if you are a healthy person then you may want to consider other potential solutions for your health insurance coverage.

    Other Potential Solutions

    There are two other potential solutions you can consider. The first one is, Short-Term Medical Plans and the second one is, Health-Sharing Programs.

    Short-term Medical Plans

    Short-term medical plans can be a great option in most states. Some states do limit the coverage length to 6 months which makes them less than advantageous. However, several states allow for 12 month coverage. In case you become ill during that duration of time, you can easily switch to a qualified plan in the next AEP (Annual Enrollment Period). Prices do change throughout the year depending on when you sign up for them. Although Short-term medical plans typically don’t cover certain things, such as, preventative services, medications, or mental health, they are a good option for unexpected medical costs. They often require health underwriting and may not be the best option if you have expensive pre-existing conditions.

    Health Sharing Programs

    Health Sharing Programs are a type of program I certainly have mixed feelings about. Due to the rising costs of qualified plans, Health Sharing Programs became a popular alternative solution for those who did not qualify for a tax credit. If you are considering this type of program, it is important to understand that the only guarantee is that they don’t guarantee anything. Health Sharing Programs are not obligated to cover your medical costs if they don’t want to, even if you are paying them a monthly cost. It is important to understand that many health-share companies have gone out of business in the past several years. In this case, any unpaid medical bills are likely not going to be paid.

    Another disadvantage is most health sharing programs require the member to pay up front for medical bills and will reimburse the member after a claim has been filed. Many families are left waiting a year or two or more for their health insurance bills to be reimbursed. This is not an ideal situation for catastrophic claims.

    If you have any questions about finding health insurance for self employment, reach out to one of our advisors at (801) 901-3519 or get a quote by clicking HERE.

  • Leave a Reply

    Your email address will not be published. Required fields are marked *

Need Help?

Speak To Donal Today!

(801) 867-9730

Monday - Friday 8:00 am - 9:00 PM

Or Find Affordable Insurance Plans

Related Articles

Dynamic Blog Short Description

  • Health Insurance In Nevada

    Purchasing Health Insurance In Nevada Nevada is one of the states that runs their own Affordable Care Act exchange. Meaning, that they don’t use the Federal marketplace. Instead, Nevada uses its own state’s marketplace for residents to choose a health insurance plan.  Medicaid/CHIP Me

    Read More
  • When is Open Enrollment?

    When is open Enrollment? Due to the significant impact of Covid-19, the Biden-Harris Administration extended the open enrollment for this year, giving people the opportunity to enroll in a healthcare plan for an extended period of of time. In most states, Open Enrollment will start November 1, 2

    Read More
  • Health Insurance for Self-Employment

    Finding health insurance for self employment can be daunting. My goal in this article is to help you understand the cost of qualified health insurance, how to save money on health insurance, and other potential solutions for affordable health insurance. Cost of Qualified Health Insurance for Sel

    Read More
  • Medicare Part D Notices Are Due Before Oct. 15, 2021

    Medicare Part D Notices Each year, Medicare Part D requires group health plan sponsors to disclose to individuals who are eligible for Medicare Part D and to the Centers for Medicare and Medicaid Services (CMS) whether the health plan’s prescription drug coverage is creditable. Plan sponsor

    Read More
  • Health Insurance and Pregnancy

    Services for Pregnant Women or Women Who may Become Pregnant Breastfeeding support and counseling from trained providers, and access to breastfeeding supplies, for pregnant and nursing women.Breast feeding support, counseling and equipment for the duration of breast feedingCoverage for pumps an

    Read More
  • Medicare Part C/Medicare Advantage

    What is Medicare Part C? Medicare Part C, also known as Medicare Advantage, is a collection of health plan options with approved Medicare benefits offered by private companies. Medicare Part C is available in many areas of the country.  The premium for Medicare Part C is not based on hea

    Read More
  • Critical Illness Policies Explained

    Critical illness coverage is a supplemental insurance policy that pays a lump sum check for a diagnosis of a critical illness. This is a great option to add to your health insurance, whether you’re covered in the private market, through an employer health insurance plan, or even Medicare. The

    Read More
  • Preparing for Open Enrollment With a Hybrid Workforce

    With open enrollment season approaching, now’s the time for HR professionals to kick off their planning. Due to the pandemic—and employees’ desire for flexibility—many employers now find themselves with a workforce on a hybrid schedule. It’s imperative they make appropriate adjustments to

    Read More
  • Why Work with a Local Broker

    There are many benefits of working with a local health insurance broker. Give us a call or find an agent near you HERE. No Extra Costs - The price of your health insurance plan is legally regulated, so you will find the same premium no matter where you shop. Working with a Compass advisor means

    Read More

What Others Say About Us

Our Customers Love Us

Donal Smith

(801) 867-9730

No Extra Cost. Professional Guidence. Complete Protection. Simplified Enrollment. Personalized Support.