We receive a lot of questions about our health insurance since becoming self-employed. People often ask what we do now that we’re running our own business full-time with Claudia working only part-time. So, I thought it might be helpful to give you a quick rundown of our solution. It’s less complicated (and less expensive) than most people think.
My insurance:
For me, I have a Health Savings Account (HSA) through Aetna. This is a policy with a higher deductible ($5000) that’s very affordable. With an HSA, a pretax savings account is paired with your plan to use for medical expenses. With this type of plan, I pay for everything up to $5000, then the insurance takes over 100% (see policy details here).
HSA basics:
- higher deductibles
- lower premiums
- a pretax savings account is paired with your plan to use for medical expenses
Claudia’s insurance:
Claudia has a more traditional policy which is an HMO though Independence Blue Cross. While we could get a much less expensive plan, we chose this more robust plan because it covers maternity (see policy details here).
HMO basics:
- you have a primary care physician (PCP) that oversees all your care
- you must visit in-network providers for services to be covered
- referrals from your PCP are needed for almost all care
- no deductible
- copays for everything
- better coverage
- higher premiums
Jude’s insurance:
For our one year old son, Jude, we qualified for free healthcare through Pennsylvania’s CHIP program. This program is specific to Pennsylvania and offers health insurance for kids. Depending on your household income, your premiums are reduced or even eliminated. That’s been the case for us this year.
Our monthly health insurance costs:
- My insurance: $92
- Claudia’s insurance: $353
- Jude’s insurance: $0
Total: $445
This may seem expensive, especially if you’re working to grow a new business. However for us, we actually have had these policies for quite a few years now, long before we started our business. So, it was something we were used to factoring into our budget and paying for.
I’ve found health insurance for self-employed individuals to be less complicated (and expensive) than many people think. Plus, there are more and more options available today for getting coverage on your own. I listed a few more below.
Additional options:
National Association For Self-Employed
1-800-232-NASE
Samaritan Ministries International
(877) 764-2426
Christian Care Ministry
(800) 374-2562
Medi-Share
(800) PSALM-23
Christian Brotherhood Newsletter
(800) 269-4030
National Federation of Independent Business (NFIB)
1-800-NFIB-NOW
Question: If you’re self-employed, what do you do for health insurance? If you’d like to be self-employed, is health insurance a big concern of yours?
Leave your response in the comments of the post.
