An FF's Guide to Health Insurance

As a freelancer, you're the CEO of your own business, managing everything from client relationships to project deadlines. Amongst the hustle and bustle of self-employment, one aspect that often gets overlooked is health insurance. While it might not be as exciting as landing a new client or launching a project, ensuring you have adequate health coverage is essential for your well-being and financial security. So, let's dive into the world of health insurance for freelancers and answer some burning questions.

Remember this is just our own research, we aren’t insurance advisors so be sure to do your own research before deciding whats right for you.

Do I Need Health Insurance?

Without sounding like your mom… yes, you do need health insurance. While it might be tempting to forgo insurance premiums to save a few bucks, the potential consequences of being uninsured can be catastrophic. Medical expenses can quickly spiral out of control, leading to overwhelming debt, especially in the US, where a single hospital stay can rack up bills exceeding $10,000. Research shows the importance of comprehensive health coverage and how uninsured individuals often prioritize financial concerns over their health needs, which results in poor health outcomes. So, consider health insurance not just as an expense but as an investment in your health and financial stability.

How Much Will It Cost Me?

The cost of health insurance for freelancers can vary based on several factors, including your age, plan type, smoking status, and household income. Premiums for ACA health plans typically range from $453 to $1,079 per month. Understanding the nuances of health insurance expenses, such as premiums and deductibles, can be daunting, but there's a silver lining. Freelancers can leverage health insurance as a deductible business expense, potentially reducing tax obligations - yay! Many freelancers may qualify for Marketplace discounts, and online tools like healthcare.gov's calculator can help estimate eligibility and costs. Remember to factor these expenses into your hourly rate to ensure your business can support you properly.

Understanding Your Options

Before diving into the sea of insurance exchanges, explore your eligibility for government programs that offer free or heavily subsidized plans. These include the Veterans Health Administration (VA) for veterans and their spouses, Medicare for individuals aged 65 and above, Medicaid for those with low incomes, and the Children’s Health Insurance Program (CHIP) for eligible children. Determining if your income qualifies you for premium tax credits can significantly offset plan costs. When thinking of which insurance plans to go with, consider factors like prescription drug coverage, access to healthcare providers, plan limitations, and available health and wellness resources. It’s crucial to find one that fits your needs and lifestyle.

Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs)

This is a hack we only recently came across! You may also want to consider pairing a high-deductible health plan with an HSA or FSA to save for medical expenses tax-free. These accounts can be particularly advantageous for freelancers looking to offset healthcare costs.

Securing Your Coverage

Once you've decided on a health insurance plan, it's time to enrol. Be mindful of enrollment deadlines, especially during open enrollment periods or special enrollment periods triggered by life events like marriage, childbirth, or a drop in your client workload.

Revisiting Annually

As your circumstances evolve, so too might your health insurance needs. Make it a habit to reassess your coverage annually during open enrollment periods. Changes in income, health status, or family composition may warrant adjustments to your insurance plan.

Navigating the complicated and often intimidating landscape of health insurance as a freelancer can be challenging, but with the right knowledge and resources, you can make informed decisions to protect both your health and finances. Remember, investing in health insurance isn't just about covering medical expenses—it's about safeguarding your peace of mind and securing your future. So, take the time to explore your options, understand your coverage needs, and prioritize your health—because as a freelancer, your most valuable asset is you and you deserve it.