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How to find health insurance for the self-employed

How to find health insurance for the self-employed

Navigating health insurance options can seem like a daunting task for self-employed workers. Since you don’t have an employer-sponsored plan, it’s hard to know where to start. Do you even need insurance? What are you looking for if you do decide to enroll? Here’s what you need to know, from insurance options to costs and even tax deductions.

Who is considered self-employed?

Over 15 million workers in the United States are self-employed. But what does that actually mean? If you earn taxable income and have neither an employer nor employees, you’re considered self-employed. This includes:

  • Freelancers
  • Consultants
  • Independent contractors
  • Entrepreneurs

Do I need health insurance if I’m self-employed?

The decision to self-pay or enroll in health insurance is up to you. You know your situation better than anyone else. However, it’s no secret that health care can get expensive – and needs are often unpredictable. A quality plan can help ensure you get the care you need, when you need it most, and at a cost you can manage.

Self-employed health insurance options

Health insurance for freelancers, entrepreneurs and contractors may seem tricky to navigate, but you have plenty of off-exchange and on-exchange health insurance options.

Many purchase coverage directly from an insurance provider or broker. Others look for a plan through their state or federal marketplace. In Minnesota, the state health insurance marketplace is called MNsure.

There are many comprehensive, low-cost plans available for consideration, whether you choose to buy directly or explore the marketplace.

Paying for health insurance when you’re self-employed

When it comes to paying for coverage, staying well-informed is critical. If you have a good understanding of what impacts pricing and what kind of payments you can expect, you’ll have a better chance at lowering costs.

Self-employed health insurance costs

Health coverage costs, in circumstance but especially when you’re self-employed, really depend on your needs. Your age, where you live and possible plan types are all important factors. Your location is particularly critical – premiums fluctuate from state to state, especially if your area doesn’t have a very competitive health insurance market.

In terms of what you might pay, whether individual or family, expected health insurance payments typically include:

  • What you pay before your plan kicks in (deductible)
  • What set fees you pay for specific services (copays)
  • The most you’ll have to pay for covered care in a single year (out-of-pocket maximum)

Is health insurance tax deductible?

Yes – when you file your yearly tax return, you can deduct your annual health insurance premiums. This may reduce your bill or boost your refund. If you meet the requirements, certain write-offs are also available – and they’re not specific to itemization.

Have more questions about individual health insurance?

Learn how HealthPartners comprehensive health plans can help you get the care and coverage you need.