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Guide to Health Insurance for the Self-Employed

Health insurance is necessary so that we can afford decent healthcare which is quite expensive. If you are employed, it would be a great relief if your employer provides health insurance for you. However not all people are employed and some who are self-employed have no insurance to speak of. If you don’t have an employer who will provide health insurance for you, then you should try to get health insurance for yourself.

If you are self-employed looking for health insurance, you can find many options available for you. There are many private companies today selling government-vetted policies that offer different coverage amounts. This is made possible by the Affordable Care Act requiring states to run their own insurance marketplace or use the federal one.

There are many other reasonable health insurance options for the self-employed people who don’t want to use government-run exchanges.

There are healthcare sharing ministries where you contribute as a group. Monthly premiums go to the coverage of your healthcare and of those in your group. This can help you cut costs. But to ensure that you are getting the right coverage for you and your family you need to make a careful research on this.

Another great way to ensure healthcare is to open a Health Savings Account. You health funds will here be under your control. This high-deductible health plan is a great option for you. The money you put in this health savings accounts can be used for your medical expenses without tax or penalties if you meet qualifications. And what is great about this account is that you put your own money in it. Even if you need money for non medical expenses you can still withdraw from this account but possibly subject to taxes and penalties.

Compare insurance policies so that you can get the best insurance deals. Although health insurance is expensive, there are still ways you can find to decrease your cost.

You can gain insurance savings by getting an insurance with less coverage. The ACE uses the metal rating system for insurance coverage where platinum covers 90% of your out of pockets cost, gold covers 80%, silver covers 70% and bronze covers 60%.

You can also qualify for savings if you buy through the state marketplace, depending on your income, that is, if it is less than 400% the poverty level.

There are also tax breaks from health insurance for being self-employed, if your income is less than enough to cover the premium. In your tax form, fill up Schedule C with your self-employed income, then you should make schedule C zero by deducting your premiums from it. The leftover premium costs should them be put on Schedule A as an itemized deduction. Although this is not sure to work but you can still try it so that you can save money on health insurance as a self-employed individual.