Insurance coverage for self-employed people has challenges but can allow them to seek out the policy that is right for them and their family. Photo by Nataliya Vaitkevich on Pexels.
Are you self-employed? Perhaps you are a freelancer or independent contractor. Obtaining the right insurance for you is vital. If you, your spouse, or dependents fall ill or get injured, you could unnecessarily pay a substantial amount out-of-pocket for healthcare that could be much more affordable. The Affordable Care Act (ACA) established Marketplace Insurance to help people afford healthcare when ailments and injuries happen.
Who are considered self-employed workers?
The federal government considers individuals self-employed if they carry on a trade or business as a sole proprietor or an independent contractor. You could be a member of a partnership, where two or more people conduct a trade or a business. Additionally, self-employed people can work in a part-time business or as a gig worker, receiving pay for providing on-demand work, services, or goods. A part-time business can involve work different from your regular full-time job. For example, you work as a schoolteacher during the week, and on the weekend, you repair bicycles. You have your own tools and advertise regularly to acquire clients. Gig work might feature selling goods online, providing creative or professional services, or driving a car for deliveries.
What insurance coverage for self-employed people is available?
Four categories of coverage exist for individuals to choose from. Bronze, Silver, Gold, and Platinum policies are available and, of course, have different features to their plans. Bronze plans offer the lowest monthly premium to consumers but also have the highest deductible. The subsequent metal levels increase the premium payments and decrease their deductibles.
How much does insurance coverage for self-employed worker cost?
The price you pay will depend on which of the four plans you select, but other factors impact cost, such as your age, where you live, and your household income. Furthermore, your health insurance might be tax deductible as a self-employed worker, and you might be eligible for a subsidy based on your income. A subsidy is a tax credit or money from the government that assists in lowering your monthly premium payment. Advanced Premium Tax Credits (APTC) may be issued to all individual and family ACA Bronze, Silver, Gold, and Platinum plans. Your final income at the end of the year will determine if you must pay back the remainder of your used APTCs than what you are due. If you have used less APTCS than what you qualified for, you will receive the difference back after filing your tax return.
Also, you can save money if you qualify for Cost-Sharing Reductions (CSR). This subsidy saves a person on deductibles, coinsurance, copays, and out-of-pocket maximum. If your income qualifies you for CSRs, you must enroll in a Silver plan to secure the CSR savings. It is possible to qualify for advanced premium tax credits and cost-sharing reductions.
When can I purchase health insurance coverage?
The open enrollment period (OEP) to purchase Marketplace health insurance begins every November 1 and ends on January 15. Your coverage can start on January 1, but you must sign up by December 15. You can still enroll before January 15, but your coverage will not begin until February 1. If you miss this window to buy Marketplace health insurance, you could qualify for a special enrollment period (SEP). Some qualifying events include getting married, having a baby, moving to a new zip code or county, and losing your insurance. Empower Brokerage’s friendly licensed agents are skilled in assisting you in finding the right health insurance coverage. If you want to speak with one of our agents, please call (888) 446-9157 today.
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