Health Insurance and the Self-Employed

Most Americans get their health insurance through their employers, but working for yourself also means providing your own health insurance. Worse, getting sick or disabled even a few days can mean financial disaster for the self-employed. But finding affordable health insurance plans can be trying for self-employed consumers.

When self-employed, health insurance options generally include purchasing a private health insurance plan, which can be costly, opening a medical savings account, obtaining group health insurance through a professional association, trade organization or chamber of commerce, or obtaining health insurance through a state-subsidized program for small groups and self-employed people.

Although obtaining health insurance when self-employed can be costly and troublesome, once it is obtained, self-employed people enjoy tax advantages not available for others.

People who itemize deductions on their annual tax returns can subtract the difference between the cost of unreimbursed medical expenses and 7.5 percent of their adjusted gross income. If the cost of their medical expenses is less than 7.5 percent of their adjusted gross income, no tax credit is given.

But many self-employed people can deduct all of their health insurance premiums and costs as business expenses so long as it does not exceed their earned income. To be eligible for the tax break, self-employed people must not be eligible for an employer-based group health insurance plan during the same tax year.

Whether you are a self-employed person looking for a great deal on health insurance or an individual curious about other companies’ health insurance rates, Insurance-Website offers a wealth of information about the nation’s leading health insurance providers and their plans. The site is 100 percent secure and you are under no obligation whatsoever to purchase insurance after receiving quotes.