Health Insurance Tips for Self-employed Business Owners

Those whose jobs include health insurance benefits have it easy. The company that employs them pays a portion of their premiums. But what if you’re your own boss, if you’re not working for someone else? If you are one of those courageous self-employed individuals, or you’re planning on starting your own business either now or after retirement, this article will give you useful tips on how you can enjoy affordable self-employed health insurance even after quitting your current job.

Hold on to your earlier plan under COBRA
The best option for continuing to enjoy your employer-sponsored health insurance for some time even after leaving your job is through COBRA – the Consolidated Omnibus Budget Reconciliation Act of 1986.

COBRA allows people to extend their current health insurance coverage at permissible group rates for 18 months maximum after leaving their jobs, provided that their former company has 20 or more employees and they weren’t fired from their jobs for incompetence or gross negligence. More information on COBRA coverage can be obtained from the U.S. Department of Labor.

The down side to this plan is that as a self-employed individual, you will have to bear the entire cost of the insurance coverage. This will be a lot higher than what you might have been paying as a company employee. The Kaiser Family Foundation states that employees usually pay just 28% of their health insurance costs.

Decrease your premium cost in advance
This will require planning ahead of time. Before leaving your job, try and join the most economical health insurance plan made available by your company during the period of open enrollment that is closest to your quitting date. This will ensure a lower insurance premium to be paid later under COBRA.

Act before the time limit expires
Your COBRA eligibility ends after 180 days, and the law guarantees you the benefit of health insurance provided that you seek coverage under a brand new policy within a span of 63 days after that. Continue Reading »
Self-employed Health Insurance

Self Employed Individual Health Insurance

You would be amazed to find that those who work as employees for companies or business enterprises always tend to seem more happy and relaxed than those who are self employed and why not?  The individuals working as employees do not have to worry about their next meal.  Primarily, there are two reasons which make them very comfortable.  As you already know, their health insurance is covered by their employers and they receive their monthly salaries on time.  Here we’ll discuss the importance of health insurance for self employed individuals, and ways to get affordable health insurance for self employed individuals and their families.

You would be astonished to find that a good 26 percent of the American population is without health insurance.  The majority of the individuals without the health insurance cover are those who are self employed.  Many self employed individuals do not opt for health insurance cover due to high costs.  You as an entrepreneur would understand that in business the returns and profits are not uniform.  The overhead costs like those of maintaining the office and paying the salaries of your employees can cause severe financial strain.

But remember, not opting for health insurance can put your and your family’s health and life at great risk.  As you are aware, a majority of the bankruptcies in America are caused due to the inability of the individuals to pay the medical costs.  A single major illness to any member of the family can leave you bankrupt.  The treatment for a major illness at a hospital may run in to thousands of dollars and wash out all your savings.  It may also push you in to severe debt.  So, what do you do? Do not despair. Continue Reading »
Health Insurance for Self Employed

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