Being self-employed has its benefits. It also has its drawbacks as well. It’s a misconception that self-employed individuals don’t qualify for quality health insurance programs. Even if you are the only employee of the business, you are eligible for several different types of health insurance plans. It’s important to ask your insurance agent what options you have available to you so that you can choose the best option for yourself and your family. The first thing you need to explain to your insurance provider is what type of business you have. This article gives you an overview of self-employed health insurance.
A Smaller Group Plan
A small group plan is often the primary choice. Managed-care plans like HMO, POS, and PPO policies are readily available. There are also high-deductible health plans and indemnity fee-for-service plans. You have the option of buying your health insurance from your state’s exchange program or directly from a broker. Going through a broker is normally your best option because they can help you find a policy that directly meets your needs and that of your family. Remember that not all states guarantee those self-employed people are allowed to buy a group plan for just one person.
The HRA Plan
An HRA, also known as a health reimbursement arrangement, offers an option for alternative health insurance coverage. It is affordable and also offers advantages when it comes to your taxes. With this program, employers can reimburse an employee’s health-related expenses before their income is taxed, like their premiums and medical bills. Reimbursement programs like ICHRA and QSEHRA help reduce taxes, making their cost as close to a traditional group plan as possible, only with fewer problems. HRAs do have their advantages as long as you qualify for them. Working with a broker is the best way to determine your eligibility and how you can take advantage of their benefits.
HRA Eligibility Requirements
If you are self-employed, it will depend on the business structure as to whether you can participate in an HRA. Only C-corps owners can take advantage of an HRA without any eligibility issues. On the other hand, S-Corps, partnerships, and sole proprietorship owners will have to work through multiple issues before they are allowed to participate. Individuals that are self-employed and fall into these categories will need to talk to their insurance broker to find out what they need to do to qualify for an HRA program if that is what they are interested in.
When you own your business, coming up with a good health insurance plan can be challenging. Contact our insurance professionals Randy Jones Insurance Services, today to ensure that you have the right coverage for yourself and your family. Our insurance experts have years of experience and can help you figure out how to get the type of coverage you want. We will also help you understand how your type of business affects your eligibility and will help you figure out the other options you can take advantage of.