Guide to Health Insurance for the Self-Employed
We all need health insurance since the cost of healthcare is very high. There are many working individuals who are given health insurance by their employers. There are a lot of people who don’t have health insurance especially those who are self-employed. If you don’t have an employer who will provide health insurance for you, then you should try to get health insurance for yourself.
If you are self-employed looking for health insurance, you can find many options available for you. There are many private companies today selling government-vetted policies that offer different coverage amounts. This is made possible by the Affordable Care Act requiring states to run their own insurance marketplace or use the federal one.
There are many other reasonable health insurance options for the self-employed people who don’t want to use government-run exchanges.
Healthcare sharing ministries allows you to get insurance as a group. Monthly premiums go to the coverage of your healthcare and of those in your group. You costs can be cut through this type of insurance. Take time to learn more about this so that you can find the right health insurance for you and your family.
Another great way to ensure healthcare is to open a Health Savings Account. You health funds will here be under your control. This is a high-deductible health plan. You put money into this account and you can withdraw funds to spend on medical expenses that meet the qualifications with no tax or penalty on the money you withdraw. And the good thing about this is that it is your own money. For you non medical expenses, it will incur taxes and penalties if you take it out from this account.
If you want to get the best deal in insurance, you should compare insurance prices. Although health insurance is expensive, there are still ways you can find to decrease your cost.
Getting insurance with less coverage helps you to save on insurance. The ACA uses metal rating system where platinum covers 90% of your out of pockets costs, 80% for gold, 70% for silver, and 60% for bronze.
You can also qualify for savings if you buy through the state marketplace, depending on your income, that is, if it is less than 400% the poverty level.
If your income is less than enough to cover your monthly premium, then you can benefit from tax breaks from health insurance for being self-employed. There is way to do this by reporting your profits on Schedule C, then deducting the premiums until your Schedule C is equal to 0. The leftover premium costs should them be put on Schedule A as an itemized deduction. Although this is not guaranteed to work but it can help to save money on health insurance if you are self-employed.
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