The Best Health Insurance For Freelancers

Many freelancers worry about finding the best health insurance. While they recognize the importance of having coverage, purchasing health insurance on your own can be very expensive.

There are specific things you can look for in finding the best health insurance if you are a 1099 employee – a freelancer.

Combine Buying Power

One of the most difficult things about being a freelancer is that you don’t have the company group health plan. Alternatives for individuals can be very pricey, and going without health insurance can be prohibitively expensive.

Big insurance companies pay lower rates than self-pay individuals, because the big companies negotiate lower rates with medical providers.

Freelancers try to get around this dilemma by joining in groups to get better insurance rates.

For example, the local chamber of commerce may have a small business group health plan which you could join. There may be groups specifically for freelancers. An insurance agent may be able to tell you about groups that exist for the purpose of negotiating better rates on health insurance. Some include Freelancers Union or National Association for the Self Employed.

Groups You’ve Already Joined

You may be surprised to find that groups of which you are already a member may have good health insurance rates for freelancers. Some college alumni associations, professional organizations, or service clubs provide group insurance, which may be the best health insurance for self-employed people.

High Deductibles

A common way for freelancers to find the best health insurance and still make it affordable is to have high deductibles on their policies.

These deductibles can be up to $10,000, but are often $5,000 or $1,000. These policies are good if you have a serious illness or accident and have tens or hundreds of thousands in medical bills.

In some cases, you can find high deductible policies that cover preventative care visits, and sometimes even sick visits.  Shop around and find the best policy.

Consider Health Savings Accounts

Another way freelancers make the best health insurance coverage work for them is by taking advantage of the 2003 provision for Health Savings Accounts.

Individuals can put money away into a health savings account. This money can be used to pay deductibles or other health related costs, and contributions to the account are tax deductible.

Seek the Help of a Professional

It is impossible for any one person to be familiar with every insurance policy available. Instead of trying to figure it out on your own, go to a broker who specializes in health insurance.

These professionals will have access to a number of different plans and different types of plans, and they may be able to point you toward policies you were unable to find on your own.

It is also good to shop around for insurance brokers just as you would with any professional. Each works with different companies and will have different policies from which you can choose.

It is important that you have health insurance as a freelancer, but don’t “settle” for an expensive policy that may not fit your needs.

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