That is, until you have to find health insurance.
The scary truth is that many of the hardworking self-employed end up emptying their pockets in order to get basic care. Or even worse, they end up forgoing the option of healthcare altogether, at a huge risk to their personal health, safety, and security.
If you are one of these hardworking few, rest assured. Although you may be skeptical, there is hope for you yet.
Before we get into how to find good care at a reasonable cost to you, it's important to keep some basic considerations and preferences in mind. Simply put, this is about knowing what you need and want in a plan. Once you have an idea of what you're looking for, you can begin exploring your options from a more critical standpoint.
First Steps: How To Begin
The most intuitive approach to finding insurance is web browsing. This is a free and easy way to get an idea of what options are available. There are a number of specific sites, known as online brokerages, which lay out the plans and insurers that are available to you based on your criteria. So if you are looking for an individual healthcare plan with lower monthly premiums and higher co-payments, the site will list insurers in your area along with the plans they offer.
This sort of thing is great for giving you a basic idea of the world of individual healthcare insurance, and it can be a fairly comprehensive resource. But the information you will find here is by no means exhaustive. Another way to approach your search is to go straight to the insurers, but keep in mind that the plans offered through brokerages and insurance companies tend to be the most expensive, least competitive prices on the market.
Healthcare Through Marriage
If you're married and your spouse has health insurance from his/her employer, then your problems may be solved. In most cases, a spouse can be added to an employer-based care plan with ease. The benefits of this option are immeasurable when compared to the alternative of finding care on your own.
The best part is, the process of transferring to your loved one's plan is relatively painless.
Just contact the HR department at your spouse's place of work, and ask what to do next.
Had Insurance From Your Last Job? Keep It!
The Consolidated Omnibus Rehabilitation Act, or COBRA for short, helps thousands of Americans remain insured after losing their jobs. If your last employer provided you with health insurance, you may be eligible to benefit from COBRA.
Here's how it works: If you've been fired but had employer-based insurance, this option lets you stay on your old insurance policy for up to 18 months, starting from your date of unemployment. In this regard, COBRA can help you transition between jobs and insurance policies, but it can also cost you.
With COBRA, you are required to pay the entire monthly premium for care, instead of a percentage of it, as is the case with most employee healthcare packages. You may not think that this is a big deal, but some of the premiums can be extremely expensive—A good thing to keep in mind, if you're thinking of pursuing this option.
Medicaid: More Inclusive Than You Think
Medicaid is government-run care for people who can't afford to pay for it on their own. You might assume that if you make any money, you are automatically ineligible for Medicaid. But the truth may surprise you.
The fact is that in most states, if you make an annual income of up to 100% above the Federal Poverty Line, you are eligible for healthcare under Medicaid.
And there's more good news: The Affordable Care Act includes provisions to raise that number to up to 133% above the FPL, which I will explain in detail a little later.
Professional Organizations May Be Able To Cover You
If you're a working, self-employed professional, there's a good chance that you belong to one or more professional organizations. Trade and Labor Unions, Bar Associations, and Arts Organizations are just a few examples of organizations that offer their members some form of healthcare. What's more, Nationally Recognized Organizations such as the Veterans' Association provide their members with full healthcare at a reasonable group rate.
Old Faithful: The Insurance Broker
Okay, so maybe this is a throwback to the good-old days. Or perhaps there is some worth to meeting with an insurance broker in person, to discuss your options. This notion may seem silly, given the extent to which information has moved online. But a professional may offer a bit of comfort and some well-needed legwork to help you along in the process of finding the right plan for you.
Self-Employed Care And The Affordable Care Act
The Affordable Care Act considers self-employed business owners to be "individuals".
Individuals, in the ACA's terms, are mandated to obtain healthcare. If you choose to not have healthcare, you'll be subject to a $95 fee at the end of 2014.
$95 might not seem so bad, but the fee will increase yearly, and eventually be tied to the rate of inflation. This is a smart incentive to get people to become insured. And let's face it: It's generally a good idea to have health insurance.
For the majority of the population, this means benefits under the Affordable Care Act.
You'll be happy to know that when it comes to healthcare under the ACA, you get to choose. The ACA has required states to set up online marketplaces, which operate like online brokerages, but with greater available tax credits to consumers.
In terms of what you will pay, the ACA is tied to your income. So if you make between 100% and 400% of the FPL annually, your cost of care will not exceed 9.5% of your yearly income.
The ACA also gives states the option to expand Medicaid requirements, which will raise the eligibility requirement to 133% above the FPL. Currently, 26 states are onboard with or leaning towards implementing the Medicaid expansion. Another provision of the expansion allows single adults without children to become eligible for care under Medicaid.
When push comes to shove, health insurance is clearly changing for the better, and it seems that future changes will only improve upon the current state of care in the U.S. Although we still have to wait for the ACA to take affect, a variety of affordable care options are available today, to thousands of hard-working, self-employed Americans.
Author Bio
Michael Cahill is the Editor of the Vista Health Solutions Blog. He writes about the health care system, health insurance industry and the Affordable Care Act. For more information about the ACA may affect small business owners, visit the Vista Health Solutions self employed health insurance guide. Follow him on Twitter at @VistaHealth
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