Some aspects of being an employee make life a little easier, such as shopping for medical insurance. In most cases, there’s no shopping involved! You take the insurance your employer has setup, pay the monthly premiums for your family and you’re good to go. However, medical insurance for the self employed is an entirely different story.
As a family, we’ve been blessed with very good health, so finding medical insurance hasn’t really been a huge focus of mine. The worst thing we’ve had happen recently was our newborn son receiving a helicopter ride to the Tucson Medical Center. I’ll go ahead and knock on wood, just in case! But that incident inspired me to dig a little deeper.
In the past, we’ve just paid cash for all of our medical expenses such as regular check-ups and birth expenses. Most medical facilities bill differently and give significant discounts for those paying cash. So if you’re health history is pretty good, you might consider that option.
However, there’s always that chance that something major will happen and hit you with a medical bill that may be a bit difficult to handle financially. So to prepare for a rainy day, medical insurance for the self employed is out there.
Medical Insurance for the Self Employed
There are some different medical insurance options for the self employed.
Mercy Care (AHCCCS)
Every state has a government medical insurance program for those who are low income and/or uninsured. However, most people don’t know that you can qualify to have your medical expenses covered by Mercy Care if you’re self employed. It’s been a long time since I’ve seen the numbers, but depending on the size of your family, I believe you could earn close to six figures a year and still qualify for Mercy Care. When we first started out in the home business industry, we used Mercy Care and were very grateful for it.
Health Savings Account (HSA)
Like I said, if you’re pretty healthy and feel you would be wasting your funds on an insurance plan, an HSA, or health savings account, might be an option for you. I’ve had friends who have used this in the past, and it worked well for them. The money you put into an HSA is exempt from federal taxes and works similar to an IRA when withdrawing funds for anything other than medical expenses. Just the same, over the counter medicines must have a doctors prescription in order to qualify for use with your HSA account.
So instead of throwing money into a medical insurance plan, or what some people consider a “black hole,” never to be seen again, you can retain those funds in a Health Savings Account. As you add funds, it accumulates and, of course, your balance rolls over every year. If you’re in a jam and need the money for something other than medical expenses, you can withdraw those funds with penalties. Yet, they’re still your funds.
Traditional Medical Insurance for the Self Employed
For a single person, prices can start at around $50/month for a medical insurance plan. There are a ton of websites throughout the NET you can search on to find quote comparisons. Sometimes someone local can find you a better deal. So if I were you and were from somewhere like Florida, I would just Google “Medical Insurance Quotes in Florida,” and see what comes up. Blue Cross Blue Shield is a major provider here in Arizona and has come pretty competitive rates compared to other national providers.
In conclusion, every individual, family and business is different. It’s obviously up to you to decide which medical insurance plan is the best fit for you, but I hope you’ll find this information helpful.
If you have found medical insurance for the self employed that works for you, we’d love to hear about it in the comments below. Thanks for sharing!
David Allred is the author and creator of CFW. David has been teaching entrepreneur minded people how to earn a full time income working from the comfort of home for nearly a decade.
Think about it. Never miss your kids’ events, set your own schedule, choose your own income and enjoy a lifestyle and income which most people only drool over!
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