Affordable Health Insurance for the Self Employed
Approximately 50% of the U.S. population is covered by health Insurance through work and 35% is covered through a public health plan. While the Affordable Care Act, otherwise known as Obamacare, increased coverage options for many, the Self-Employed are finding it increasingly difficult to obtain affordable health Insurance. If you are self-employed and in good health here are some alternatives.
Minimum Essential Coverage
These plans provide preventive health care services required under the affordable care act and individuals who enroll in these plans are exempt from the penalty for not having health Insurance since they provide the minimum essential coverage required by the healthcare law.
These plans cover physician fees, labs and any other diagnostic services that are necessary according to age and gender as outlined by the healthcare law. Premiums are approximately in the $100 – $150 range for these types of plans. However, they will not cover services for illnesses or injuries.
Non-Creditable Health Plans
These types of plans provide benefits for medical and hospital expenses. However, they don’t provide all the requirements under the healthcare law such as preventive care, maternity and mental health among others. These plans exclude coverage for pre-existing conditions or establish a long term waiting period before pre-existing conditions can covered.
While these types of plans alone will not help you avoid the tax penalty for not having creditable coverage, they can be purchased in addition to a Minimum Essential Coverage Plan. With that combination the person can obtain preventive benefits, add medical and hospital services for illnesses or injuries and avoid the tax penalty.
These plans are more affordable than Obamacare plans and could be a good alternative for self-employed persons who are healthy and cannot afford to purchase creditable coverage through their employer or the Federal Marketplace. Premiums are approximately in the $200 – $1,000 range for these types of plans depending on which services you want to include in your coverage.
Healthcare Cost Sharing Plans
These plans are offered through a Group of individuals that share faith-based values. Even though members don’t have to belong to a specific religion, they are committed to a healthy lifestyle, good health habits and believe in helping others. Members have a reciprocal agreement to share on each other medical expenses. This means that healthy members pay the expenses of members requiring health services due to an injury or illness.
These plans are not backed by an Insurance Company and are not insurance. This means medical expenses are covered if member contributions are sufficient to pay them. People who become members in these plans are exempt from paying the penalty for not having health Insurance because of their religious conviction. Premiums are approximately in the $200 – $1,000 range for these types of plans depending on which services you want to include in your coverage
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