Finding Affordable Health Insurance When Self Employed

Working for oneself is exciting and expensive. Self–employed individuals who want health insurance coverage must dig a little deeper to find an affordable policy. Take heart. There are several ways to keep health insurance costs under control without completely forgoing coverage. Here's how:

Take on More Risk
Any time you accept a larger portion of the financial risk, insurance companies will reward you with a lower premium. Specifically, raising deductibles, co–payments and coinsurance percentages are all proven methods of lowering premiums. However, don't get carried away. Raising any of these means you will shoulder more of the cost when you use the coverage.

Also, many insurance companies allow policy holders to pay the entire premium up front. Doing so can save you money.

Take a Look Around
There are numerous health insurance companies offering hundreds of different coverage options. Call a few companies and search online for deals, too. Also, consider calling an independent insurance agent or broker, who typically represents several insurance companies and can do this shopping for you.

Take Something Out
Some plans are flexible, allowing policyholders to piece together coverage you consider valuable while forgoing others for premium savings.

If you do not visit the doctor regularly, you may consider limiting or dropping coverage for routine doctor visits. Insurance to cover catastrophic losses only normally is less expensive than a comprehensive plan.

If you currently are paying for other coverage, such as vision care or prescription drugs, and do not use these resources consider eliminating coverage for them.

Take the Deduction!
Possibly the best news for self–employed people hoping to save money on their health insurance occurred in 2004; that's the year the Internal Revenue Service increased the self–employment insurance tax deduction from 70 percent to 100 percent. Self-employed individuals can now take an above–the–line deduction of 100 percent for their health insurance premiums.

In addition to this deduction, self–employed individuals are excellent candidates for a Health Savings Account (HSA). An HSA combines a tax–deferred savings account with an affordable high–deductible health plan. Premiums are tax deductible and the money in the account is not taxable if used for qualified medical expenses.

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