health insurance for freelancers
Full-time employment comes with full-time benefits, health insurance being one of the most (if not the most) important. Finding health insurance when you’re self-employed, might seem complicated, but there are actually a lot of options out there! This isn’t only relevant for freelancers, but also those who have a part time job, short term job, or a combination of gigs that make up your income. When I lost my job last year, I had to turn to some of these options, and I want to share this with anyone who might be in need of these resources.
Public or Private Insurance?
Whether or not you choose to go with public or private health insurance is completely up to you, your health, and your financial situation. Both public and private insurers offer cost-sharing structures that vary based on state regulations.
Private Insurance
Private insurance is typically what employers use for group plans, where they are able to subsidize some of the cost of healthcare for their employees. These plans aren’t exclusive to larger organizations, and there are still options for private plans for those who are self-employed. To find these, you can start by looking into the insurance companies that you’re familiar with to see if they have coverage for individuals or families. Some companies I’ve seen (in Massachusetts) are Blue Cross Blue Shield, Harvard Pilgrim, and United Health Care.
There isn’t a lot of information I can give about rates, since they vary based on your age, health conditions, and how many people you need your insurance to cover. Healthcare.gov is a great resource to start with. Otherwise, you can just search: marketplace health insurance + your state. These programs give you the ability to choose between a list of private insurers, so you’ll be able to choose between different prices and features that you may need. The Affordable Care Act made it so these marketplaces are required to cover these “essential health benefits” :
Freelancers Union
There are group policies that Freelancers might also be eligible for, this is something that I’m currently looking into starting with this website.
Public
Public healthcare options vary widely based on where you live, and rates vary from $0 to “low” monthly payments (vague but seems to be anywhere from $200-600 per person). Public health insurance can be primarily broken down into Medicare and Medicaid (others include Children’s and Military).
Medicare covers any person 65+, or anyone with long-term disabilities and provides hospital and medical insurance. Medicare is broken down into Part A, B, C and D. Part C combines the benefits of A and B, and D helps pay for prescription drugs.
Medicaid covers any low-income families, the blind, and people with disabilities. Some benefits vary by state, but these services are included in the federal guidelines:
You might also qualify for a government subsidized plan for middle and low-income individuals if your income is within 400% of the Federal Poverty Guidelines (<$51,520/year/one person). You can see what you qualify for using marketplaces like Healthcare.gov.
You do have to re-enroll for these programs annually, which is why you might see the term “Open Enrollment” or “Special Enrollment”. This at least gives you flexibility to change plans as you need without being tied to an employer. This year, you can enroll or change health insurance plans until May 15th.
Before you apply for a plan, you can preview and estimate prices based on your net income. If you don’t know how to estimate your income for the coming months or year, they have resources for that as well.
Although the cost of medical insurance may seem intimidating, it can save you a lot of money in the future if you end up getting sick, or hurt. Also, most sole proprietors are able to write off their insurance premiums (on line 29 of IRS Form 1040).
If you don’t currently have health insurance, I highly suggest looking into these options to save yourself in the future! If you find yourself uninsured, there are safety nets in place which fund health centers that provide services regardless of your ability to pay. There are so many resources to look to, but if you have any questions that you can’t figure out with a quick search - reach out to an insurance agent who can help you find a plan that fits your needs.
My Questions
I have 2 questions for freelancers (or anyone who has advice on this topic): How do you go about calculating your own sick pay? If you’re self-employed, I understand there is the benefit of having flexibility with your schedule. However, I’ve heard from so many freelancers that their work becomes their entire life and leaves little room for balance. I imagine that as long as my needs are met financially, and that I’m able to communicate with clients about realistic deadlines, it should be manageable. But maintaining mental and physical health are really important to me, so I would really appreciate any suggestions or experiences you have around that to share!
I’ve also heard that a health savings account can be helpful to make larger payments towards premiums. It’s not something I have the savings account for at the moment, but, I like to have this information in the back of my mind if my circumstances change. Does anyone have experience with these or resources to look toward?
