It takes a lot of research, good information and solid knowledge of the system to really get affordable or advantageous self employed health insurance. When you leave your corporate job, you should continue with the same kind of health insurance for a while; you have this right according to COBRA (the Consolidated Omnibus Budget Reconciliation Act). You can continue to pay premiums at the level of the group rates you previously had for up to 18 months after leaving your job.
Information on COBRA coverage is available with the US Department of Labor and you can refer to it in order to better understand your rights and benefits under th circumstances. Even so, when you pay for self-employed health insurance, the price tag is usually a shock given that you have to provide full coverage. Typically, an employee only pays 28% of the insurance premiums when working in a corporation that provides health insurance packages. There is one thing you can do to limit the level of the premiums.
You can contract a less comprehensive health insurance plan in the period that precedes your departure from the company, which means that the rates will be lower. Get whatever you find cheaper in order to have a lower self-employed health insurance premium according to the COBRA coverage. When the COBRA benefits are over, you have to find another type of health insurance, and you are still insured for 63 days during this period.
The problem of the self employed health insurance could be solved if you have a working spouse and you can join his/her plan. This option is usually more efficient from the financial point of view, and the premiums are often lower than the COBRA option too. Don’t make any decision unless researching it well. Good coverage for decent money is possible if you take the time to shop around.
For self-employed health insurance, you can also get a plan with a higher deductible so that some of your tax dollars may go to your tax-free health savings account. If you don’t get reimbursement by the health insurance plan or you have extra medical expenses, you can use the money in this savings account to pay for the treatments. If you start hiring employees and the business grows more money can be saved. As compared to the individual solution, small businesses provide a better chance for a good self employed health insurance plans.
