Whether you are a solopreneur who runs a business or an entrepreneur who invests in a business, the satisfaction of calling all the shots helps drive your passion for getting away from a structured corporate setting. For all the benefits enjoyed by the self-employed, there is one significant problem that solopreneurs and entrepreneurs must address.
It is how to get health insurance if you’re self-employed.
The answer depends on your status as a self-employed professional, from short-term self-employment to staying as a solopreneur or entrepreneur for the long haul.
What’s the Best Health Insurance for Short-Term Self-Employment?
You might feel secure in a job one day, only to find out the next day your employer has decided to downsize the company. Instead of relying on unemployment compensation, you take your considerable talents online as a freelancer. Whether a few short-term gigs bridge the gap between jobs or one of the gigs helps you land a new job, you still have to get health insurance coverage until you receive coverage from your next employer.
The Consolidated Omnibus Budget Reconciliation Act (COBRA) allows you to keep the same employer-sponsored health insurance plan for up to 18 months. COBRA represents the ideal health insurance program for professionals that plan on working for another employer, but need short-term health insurance coverage to bridge the gap. Since your former employer no longer subsidizes your health insurance coverage, enrolling in a COBRA plan will cost you more each month in premiums.
Learn more about COBRA insurance:
- Pros and Cons of COBRA Health Insurance
- COBRA vs. Marketplace Coverage: Your Options in the Event of Job Loss
Short-Term Health Insurance
As the name implies, short-term health insurance can help you bridge the gap between two employer-sponsored health insurance policies. How short is short-term insurance? You should be able to find a plan that covers you for only three months, if you find another job quickly after leaving your last employer. The Affordable Care Act (ACA) allows you to enroll in a short-term health insurance plan outside of the annual enrollment period and you might be able to find a plan that charges low monthly premiums.
What Are My Health Insurance Options If I’m Permanently Self-Employed?
Your vision as a solopreneur or entrepreneur is to own your business until the day comes for retirement and you either sell it to another investor or hand it down to one of your heirs. Entrepreneurs and solopreneurs in it for the long-term should consider different health insurance options than the health insurance options available for professionals in temporary self-employment jobs.
Health Insurance Marketplace
The first place to search for the right health insurance plan is the Health Insurance Marketplace. You should find a plan that offers the same types of healthcare benefits that you received from your last employer. This includes coverage for physician visits, preventive care, and prescription medications. You compare plans based on price, benefits, and quality of healthcare services by accessing the federal government-run website. By submitting just one application, you determine whether you qualify for coverage offered by Medicaid and/or the Children’s Health Insurance Program (CHIP).
Private Health Insurance
Insurers tailor several health insurance plans for professionals that are self-employed, which means as a solopreneur or entrepreneur, you should find a health insurance plan that provides the coverage you need, at an affordable price. For example, if you want a plan that gives you access to in-network providers that offer preventive care services, you should be able to enroll in one without busting the monthly budget. Meeting with an independent insurance agent can help you find the best health insurance plan.
Get a Quote From Insurance Broker Hub
You do have options. Whether you are eligible to enroll as a result of lost coverage, need to apply under the emergency Qualifying Life Event, need COBRA, or are seeking short-term health coverage, it pays to have someone in your corner who knows how to help.
Shopping for insurance used to be confusing and time-consuming. But with the help of our national network of licensed brokers, it doesn’t have to be. Insurance Broker Hub has helped over 10,000 consumers find the coverage they need at a price they can afford.
Our free service gives you access to an independent network of national brokers who have the experience and expertise to design a plan around your needs and budget. Ready to get started? Simply request a no obligation health insurance quote here.
The Bottom Line
Self-employment introduces several responsibilities that you did not have to address while working for an employer. Reduce the stress and frustration of addressing the health insurance responsibility by understanding how to get health insurance if you’re self-employed.