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Short Course on Options – Getting to Square 1

Self Employed Moms and Health Insurance

Today, the cost of healthcare is very high and this is the reason why all of us need health insurance. The good thing for people who are employed is that there are employers that provide health insurance for their employees. But there are many who are not employed, and most self-employed individuals do not have health insurance at all. But this should not stop you from getting health insurance for yourself if there is no employer to provide you one.

Self-employed individuals can actually find many options for health insurance. You can purchase insurance from private companies selling government-vetted policies offering different coverage amounts. This is part of the Affordable Care Act where states are required to run their own insurance marketplace or use the federal one.

For self-employed people who don’t want to use government-run exchanges, they can still find other reasonable health insurance options.

In healthcare sharing ministries, you contribute to health 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. But to ensure that you are getting the right coverage for you and your family you need to make a careful research on this.

Another option you can take is to open a Health Savings Account. You health funds will here be under your control. This high-deductible health plan is a great option for you. 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 what is great about this account is that you put your own money in it. For you non medical expenses, it will incur taxes and penalties if you take it out from this account.

Compare insurance policies so that you can get the best insurance deals. 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 ACE uses the metal rating system for insurance coverage where platinum covers 90% of your out of pockets cost, gold covers 80%, silver covers 70% and bronze covers 60%.

If you incomes is less than 400% of the poverty level, then you can buy insurance through the state marketplace which qualifies your for savings.

There are also tax breaks from health insurance for being self-employed, if your income is less than enough to cover the premium. To do this, go to Schedule C and report your profits, then deduct your premiums so that your Schedule C is equal to zero. You can then put the leftover premium costs as an itemized deduction on schedule A. Although this is not guaranteed to work but it can help to save money on health insurance if you are self-employed.