How to Get Health Insurance as a Freelancer (6 Options)
Hey there friends! Let’s talk about your favorite subject:
Wait for it… Health insurance!!!
Navigating healthcare is already incredibly stressful and confusing—especially when you are preparing to leave an employer-sponsored health plan!
Today, we’ll talk through some ideas to get you on the right track toward making healthcare a little less scary to navigate.
If you stick with me through the end, you’ll be able to address the major types of healthcare coverage available to freelancers including the following:
Circumstances that will allow you to join (or stay on) your spouse or parent’s workplace health plan
Staying on your current employer-sponsored healthcare program when you quit to live the dream life!
Other options for individual coverage
No matter what you decide to do, this article will put you on the right track for solving your healthcare planning!
Here are the major types of healthcare options available to freelancers:
Stay on your parent’s healthcare plan if you’re under 26
If you’re under the age of 26 you are generally eligible to join your parent’s healthcare plan. They’ll probably let you on if you ask nicely– like whiskers here:
How could they say NO to THAT?! 😍😍😍😏
If you’re under age 26 this is often the best and least expensive option for you.
If you’re not already covered under your parent’s plan, you’re able to join at your parent’s next open enrollment. Otherwise, if you lose coverage you may qualify immediately.
Believe it or not, you are still eligible to stay on their plan even if you’re married and no longer a dependent!
Coverage normally ends on your 26th birthday– but may last through December 31st of the year you turn 26. Check your parents’ workplace plan document for details!
Say “I do” to your spouse’s healthcare plan
In many cases, joining your spouse’s workplace insurance plan is going to be better and/or cheaper than most individual plans on your own.
In the insurance world, they have this term called a “Life Qualifying Event”. This typically describes an event that allows you to join a health plan outside of the normal open enrollment period– like marriage! You can find a list of Life Qualifying Events by visiting healthcare.gov.
Are you “living the dream” running wild and free on your own as a single person?
Great! Let’s cover your options in the next sections!
Stay on your old employer’s plan (COBRA)
If you’ve just left your job, or if you’re planning to leave your job behind you, you may consider continuing coverage on your existing employer-sponsored health plan.
Although you may consider not to 😐. It can be expensive.
Despite the sharp sting that may accompany the often higher premiums under COBRA, its name derives from the Consolidated Omnibus Reconciliation Act (COBRA) and generally applies to any company offering group health insurance to a group of 20 or more employees.
That literally means nothing to me, but is a “fun” fact nonetheless 😏.
Bottom line is that COBRA is designed to create flexibility for employees experiencing a transition from employment.
Under COBRA, you’re eligible to stay on your current workplace’s health insurance plan for up to 18 months following your departure. During this time, you’re likely to pay up to 102% of your combined employee and employer premiums.
So if your employer was subsidizing part of your premium, then you may have to pay a much higher premium than you previously did. Ouch!
Leveraging COBRA may make sense when you can’t find cheaper coverage elsewhere. It may also make sense if you have any special prescription drugs covered by your employer plan that may otherwise be too expensive to buy on other plans.
See if you qualify for a Veteran Affairs Plan
First off, if you served in our country’s armed forces, we are all very grateful for your sacrifice! Thank you for your service!
If you’ve served in active duty for 24 months or more, or otherwise meet the eligibility criteria listed on the Veterans Affairs (VA) website, you can have access to incredibly affordable healthcare!
You can check to see if you’re eligible by clicking here.
Join the Freelancer’s Union
What?! There is a freelancer’s Union?!
Yup. Check’em out here: https://www.freelancersunion.org/
They may not help you collectively bargain for awesome retainers with your freelance clients, but they otherwise act as an advocacy for freelance workers across all industries.
As a freelancer, you can participate in their association health plans here. Some of the plans are location-dependent, so be sure to check out their website to see if any of their offered plans fit your needs!
You’ll also notice that they also offer a variety of other “voluntary” benefits like dental, optical, and life insurance. Very cool.
If you can’t find the right plan with the Freelancer’s Union, then your next best bet is to find individual coverage through the healthcare exchange.
Get coverage on the Healthcare Exchange
In 2022, the primary way to find healthcare on your own is through state-sponsored healthcare exchanges. If you can’t find what you’re looking for in any of the previously mentioned resources, then this will be your final option through traditional health insurance.
Every state has its own plans created through local, regional, and national insurers.
You can find your state’s exchange by going to healthcare.gov and choosing your state from the drop-down.
If you’ve experienced any Life Qualifying Event you can start your application and review your options now. If not, you will need to wait until 2023 open enrollment begins November 1, 2022 through January 15, 2023.
You’ll find that healthcare premiums are not necessarily cheap. The good news is that if you’re starting out, there is a chance that you may qualify for a subsidy or premium tax credit to help offset the cost of your premium.
Generally, if your income falls within 400% of federal poverty guidelines (See Federal Poverty levels here) you are eligible for some form of a premium tax credit. Check out more details about qualifying for premium tax credits on the IRS website here or talk with your accountant to answer any specific questions related to your unique situation.
See if qualify for Medicaid
Medicaid is a government program intended to help you get access to healthcare when you otherwise may not be able to afford it.
Medicaid is a Federal-State partnership program. The Federal government sets certain guidelines and the State is responsible for administering their programs and has flexibility to determine coverages and how they intend to administer the program in their state.
You can find whether you might qualify by clicking the link here.
Look into a Health Share Plan (HSP)
Maybe you like to be different. Maybe you like to be unique.
MAYBE, you prefer to cover your health expenses through a Health Share Plan. 😎
A Health Share Plan is NOT traditional insurance. Nope, it’s something MUCH MUCH… similar. 🤔
What the heck is a Health Share Plan and WHY would I go that route versus traditional insurance?
Health Share Plans (HSP) are an alternative to traditional insurance.
They are typically sponsored by religious-affiliated organizations (although you don’t have to follow that particular religion or any religion for that matter) and it often provides a LOWER COST ALTERNATIVE to traditional insurance.
BOOM! There it is– saving that money.
Gusto wrote a killer piece explaining health share plans here. You should check it out, but in the simplest terms, they have different mechanisms for achieving the same objective.
Instead of “deductibles” you have your “unshared amounts”. Instead of “Premiums” you pay a “monthly share amount”. Instead of medical costs being “covered” by your plan, your costs are “shared” by the HSP.
HSPs can be a great fit for you if you are already in great health, with limited pre-existing conditions. Certain HSPs may have better coverage for certain illnesses than others.
The major downside of choosing an HSP over traditional insurance is that you don’t have the same legal protections against non-payment that you may have with your traditional insurance. That is why it is VERY important to understand the ins and outs of the HSPs guidelines.
That said, I have several friends that have utilized HSPs and never had any issues with being reimbursed for expenses. In fact, one friend had a baby and was only responsible for $500 of the total cost of the hospital stay! The plan reimbursed payment for all other costs– which is pretty incredible!
If you want to check out the different HSP organizations available, I strongly recommend you spend some time on the HealthShareGuide.org website.
The Bottom Line
There you have it! Now you have access to all the resources you need to get covered (or shared)! Have more questions about health insurance? Reach out and ask! I’d love to do some research to help you figure out the best options for you.