It used to be hard to find health insurance coverage if you were self-employed. But in today’s competitive market, DFW Direct makes it easy.
You’re considered self-employed if you have a business that takes in income but doesn’t have any employees. You can enroll in health insurance coverage if you’re a freelancer, consultant, independent contractor, or other self-employed worker who doesn’t have any employees.
Whether you need a different option than COBRA, only need short-term health insurance, or industry specific insurance, weigh your options carefully to decide what fits your needs. Here are a few pointers if you’re self-employed and shopping for health insurance:
Self-Employed Health Insurance Tips
- Self-Employed Health Insurance Tax Deduction – Being your own boss also means taking the risks if business is slow. If you qualify for this deduction, you’re allowed to deduct 100% of your health insurance premiums from your adjusted gross income every year. This is a deduction for self-employed individuals and their dependents.
Things you need to do to qualify:
- You’ll need to prove you have your own personal health insurance coverage and that you are not still covered by an employer’s group plan or named in someone else’s policy (like your spouse).
- Prove your income from being self-employed. You need to have some income coming in to apply for a deduction. If you have a few different streams of self-employed income, you can only claim the deduction against one of those streams.
- It Might be Best to Choose a High Deductible Plan- You’ll have lower monthly premiums if your health insurance plan has a high deductible. This means lower monthly expenses, but you’ll need to make sure you can cover the cost of the deductible when the time comes. It would be wise to have a Health Savings Account to cover that expense.
- An HSA is a tax-advantaged savings account linked to a high deductible health plan (HDHP). It’s basically a savings account for you and your dependents to pay for qualifying medical expenses. The interest you earn in your HSA is tax-deferred. Withdrawals you make to pay for medical expenses are also tax-free.
- Plans with a $1,350 individual deductible or a $2,700 family deductible qualify for an HSA.
- Some health care expenses are not covered by most health insurance plans, like dental and vision care. Having an HAS will help you pay for these expenses. Unused health saving account balances can continue to build if not needed in a given year.
Many factors can dictate what plan is best for your needs, talking to an agent can help you decide the best route to plan for your health care.