Health insurance becomes an issue for you.
It is also not inexpensive. or easy. or especially enjoyable.
The good news is that there are insurance policies designed specifically for independent contractors, gig workers, and self-employed people. All you have to do is know what to prioritize and where to look.
Let us dissect it.
Why Getting Insurance Seems Unachievable for Freelancers
As a W-2 worker, your employer often pays a portion of the expenses and manages the specifics of the plan. As an independent contractor? Everything is on you, including the paperwork and the premiums.
You deserve attention just as much as anyone else in a cubicle, but here’s the problem. Regardless of your profession—graphic design, virtual assistant, Uber driver, or creative jack-of-all-trades—your health should not be at risk.
What a Freelance Insurance Plan Should Include
Prior to discussing the top choices, let us discuss what matters most when working as a freelancer:
Reasonably priced monthly premiums
Fair out-of-pocket limitations and deductibles
Access to the clinics or physicians of your choice
Preventive care, prescription drugs, and mental health coverage
Being able to move around and not be restricted by a place or employer
1.HealthCare.gov’s ACA Marketplace Plans
Ideal for: Independent contractors seeking complete coverage with possible subsidies
You can compare individual health insurance in your state using the Affordable Care Act (ACA) marketplace. You may be eligible for cost-sharing reductions or premium tax credits, which can significantly reduce your expenses, depending on your income.
Pro tip: Many independent contractors are unaware that they are eligible for subsidies. For instance, you are probably qualified if your adjusted gross income is between $15,000 and $60,000 annually.
includes vital benefits like mental health, maternity, and preventative care.
No pre-existing condition exclusions
Cons: Without subsidies, it could be expensive.
In certain areas, networks could be restricted.
2.Oscar Health and the Freelancers Union
Ideal for: Independent contractors, creatives, and business owners in certain states
Oscar Health and Freelancers Union collaborate to provide insurance specifically designed for independent contractors. If you live in one of the covered locations, it is a terrific alternative even though it is not available statewide.
Benefits: Made for independent contractors
includes wellness benefits and round-the-clock virtual care.
Clear pricing and a user-friendly app interface
Cons: Only accessible in a few states (such as NY, TX, CA, and FL)
3.Medicaid (Very True)
Ideal for: New or low-income independent contractors
Do not ignore Medicaid if you work as a freelancer full-time but have not yet established a consistent income. The Affordable Care Act (ACA), which is intended to offer good coverage at little or no cost, expanded eligibility in several states.
Advantages: Complete coverage at little or no cost
includes vision and dental care in numerous states.
Excellent for young or inexperienced independent contractors
Cons: There are income restrictions.
varies greatly by state.
4.Plans for Catastrophic Health
Ideal for: Young, healthy independent contractors seeking coverage for the worst-case situation
Catastrophic plans may offer extremely low premiums with extremely large deductibles if you are under 30 or are eligible for a financial hardship exemption. Although they will not cover much daily care, these policies will be available in an emergency.
Advantages: Extremely cheap monthly fees
If you are healthy and only want ER protection, this is a good choice.
Cons: Expensive out-of-pocket expenses
5.Ministries of Health Sharing
In a technical sense, health sharing programs such as Medi-Share or Liberty HealthShare are not insurance. Rather, members combine their funds to pay for medical bills. Some freelancers find it inexpensive and community-focused, but it is not for everyone.
Benefits: Reduced premiums
frequently incorporates wellness incentives and holistic care.
Cons: You are not required by law to reimburse your claims.
excludes certain services (such as mental health or birth control).
6.COBRA (Short-Term Choice)
Ideal for: Independent contractors leaving a full-time position
The catch? You pay a little administrative cost in addition to the entire premium.
Advantages: The same level of coverage as before
No modifications to the network
Cons: Pricey (you pay your employer’s part in addition to your own).
A short-term repair rather than a permanent one
Extra Advice: Combine with a High-Yield HSA
You can open a Health Savings Account (HSA) if you select a high-deductible health plan (HDHP).
For independent contractors, tax-free contributions, tax-free growth, and tax-free withdrawals for approved costs are like a secret weapon.
Concluding Remarks: Always Get Insurance
You have flexibility when you work as a freelancer, but that freedom comes with responsibilities. Furthermore, nothing depletes your finances more quickly than an unforeseen medical expenditure.
Spend some time considering your possibilities. Pose inquiries. Examine different plans. Above all, keep in mind that investing in your health is an investment in your company.
If you are sick, you can not hustle.
