What Are The Cheap Health Insurance Options For The Self-Employed?

By Cathy Wilson Posted in Health Insurance News

Contrary to conventional wisdom, self-employed individuals have viable options for carrying affordable coverage; there are ways to reduce the premiums and make health insurance manageable.

Self-employed individuals may elect to join discount plans, often such plans require either higher out-of-pocket expenses or higher deductibles, and still others may oblige opting out of specific coverage.

Catastrophic health insurance policies are one of the best options for healthy individuals without children and have few or no prescriptions. Premiums for this type of coverage are very affordable (typically under $100 per month) and the policy covers unexpected illnesses and accidents. What’s more, coverage can begin within 24 hours.

Reduce Premiums With Increased Deductibles

Monthly premiums can be reduced by increasing the deductible (the out-of-pocket portion paid before an insurance plan begins paying the provider). Though it will cost more in the event of seeking medical attention, it will likewise reduce the monthly premium and is still less inexpensive than not carrying insurance at all.

Receive A Substantial Discount By Paying Annually

Nearly all insurance companies offer a substantial discount for paying the full year’s premium in one lump sum. Paying the annual premium in one installment will not only eliminate monthly payments, it will considerably reduce the overall cost.

Take Advantage Of The Tax Deduction

Most small business owners operate under an “S” Corporation status and when filing annual taxes, the federal government allows for a deduction of as much as 70% of health insurance costs.

Establish a Medical Saving Account

Medical savings accounts are tax-deferred and allow a certain portion of earnings in a savings account. Combined with raising the deductible, the will insured pay less in taxes and can use said savings to pay the deductible.

Related posts:

  1. Does A Health Care Savings Account Lower My Monthly Insurance Costs?
  2. How Do You Start A Health Care Savings Account?
  3. What Are The Cheap Health Insurance Options For The Self-Employed?
  4. How Can I Lower My Health Insurance Costs?
  5. How Can I Save On Health Insurance If I’m Self-Employed?

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