Module 4: Health Insurance
When it comes to health insurance, self-employed individuals often face unique challenges. Unlike traditional employees who typically receive health benefits through their employer, self-employed workers must navigate the insurance landscape independently.
Fortunately, several types of health insurance plans cater specifically to the needs of self-employed individuals.
Here are a few examples:
1. Health Savings Account
(HSA) Plans HSA plans are a fantastic option for self-employed individuals who want to prepare for future medical expenses while enjoying tax benefits. These plans combine high-deductible health insurance with a savings account that allows you to set aside pre-tax dollars for medical expenses.
Not only can you use these funds for current healthcare costs, but any unused money rolls over year after year, making it a smart, long-term financial strategy.
2. Short-Term Health Insurance
Short-term health insurance can bridge the gap for those who may find themselves in between jobs or waiting for a more comprehensive plan to kick in. These plans typically offer coverage for a limited period (usually up to 12 months) and are designed to provide basic protections against unexpected medical costs. They can be a cost-effective solution when you need coverage quickly.
3. Individual and Family Health Insurance Plans
These plans are purchased directly from health insurance providers and can be tailored to your and your family's needs. You can choose from various levels of coverage, including bronze, silver, gold, and platinum plans, each offering different benefits and out-of-pocket costs.
With the Affordable Care Act (ACA), self-employed individuals can also purchase insurance through state or federal health insurance marketplaces, often with subsidies based on income.
