Self Employed Health Insurance

Options for Self Employed Health Insurance

COBRA is often the first option to consider for Self Employed Health Insurance

If one has recently taken the bold step of joining the ranks of self-employed, he or she should carefully consider the option of extending one’s employer-sponsored health insurance coverage through CORBA. The
Consolidated Omnibus Budget Reconciliation Act of 1985 allows one to extend his employer-based coverage for a period of 18 months. The downside is that one needs to pay the premiums for his or her self employed health insurance coverage, which were previously paid by his or her previous employer.

If one cannot avail of COBRA coverage, what are some other options for self employed health insurance?

One of the biggest concerns for self employed professionals is finding affordable health insurance coverage. Here are a few ideas to consider for self employed health insurance :

Spousal Support
If your spouse works for a company that offers employer-sponsored group health insurance, the coverage might be attractive compared to plans you could get on your own. In addition to offering coverage to spouses and dependents, many companies are also extending coverage to domestic partners.

“Group of one” plans

Some states offer “group of one” policies that essentially allow self-employed workers to purchase health insurance at group rates. The premiums you will pay for these one-person group plans will be much lower than the premiums you would have to pay on individual policies.

Association Programs

Even though you’re working solo in your business, you still may be able to tap into group buying power. Associations often make group rates available to their members. Research options available through professional and trade associations, the local Chamber of Commerce and, if you’re a college graduate, your alumni association.

Shop for an individual plan

If your only option is to get individual health insurance, keep in mind that costs will vary depending on your medical history, age and the insurer that you select. Be sure to get multiple plan options and carefully compare prices.

Are State-sponsered programs like High Risk Pool a good option for Self Employed Health Insurance?

More than 30 states have established government programs known as “high risk pools” to offer insurance to individuals who cannot qualify for insurance with a private insurer.

While eligibility requirements for high risk pools may vary by state, here is a list of criteria for likely candidates, according to the American Diabetes Association: 

• You have been denied health insurance by an insurance company.
• You receive a specific condition exclusion to your policy or a notice of benefit reduction.
• Your premium rates go up and exceed the high risk pool rate.
• You have a qualifying health condition, such as cancer or AIDS.
• You have been involuntarily terminated from a health insurance plan or
• You are eligible for HIPAA gap coverage.

Use an online exchange to look for a cheap self employed health insurance plan

If you would like to explore more for a cheap self employed health insurance plan, an online health insurance comparison shopping engine like vimo.com may be a good bet. Vimo.com automatically generates a side-by-side comparison of your best options. Just like when buying a car, a side-by-side comparison of price and features can be an invaluable step in evaluating health care plans.

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