Don’t let the fear of not having health insurance prohibit you from taking the next steps toward financial freedom and career independence.
Having employee-sponsored health insurance can offer security and peace of mind along with a discount and we completely understand that. However, there are also advantages to independently purchasing coverage that is correct for you and your family.
At RSA we are independent contractors, just like you, and can offer you advice from our own personal experiences.
How to Get Affordable Health Insurance
Purchasing health insurance independently may not be as difficult as you think. Working as a contractor, you have the same access to all the health insurance plans as you would through an employer. These plans can be purchased directly through various insurance company websites such as Blue Cross Blue Shield, United Health Care, and others.
Government Health Plans
Through the Healthcare Marketplace, supported by the Affordable Care Act, you can access all these same plans, side by side. Typically, you must enroll in any Marketplace plan during the open enrollment period of November to January. However, leaving a job with employer-sponsored health insurance is a qualifier to purchase these plans outside of this period.
If you need coverage but don’t have a qualifying event outside of the open enrollment period, you are able to purchase short-term insurance—generally 6 months to 1 year—to keep you from going uninsured while you wait for the open enrollment period to begin.
Children, via the Children’s Health Insurance Program (CHIP), are always eligible for new coverage regardless of time of year or situation. The cost and different rules vary depending on the state in which you reside.
If you would like to estimate your health insurance cost quickly and without filling out any official forms, the Kaiser Family Foundation offers a calculator where you can compare different policies and levels of coverage via the Marketplace.
If you are interested in non-government regulated care or find the Marketplace options above offer too much coverage or are too expensive, a private company offering more options may be a better fit.
HealthShare Plans
HealthShare plans are becoming more popular via places like CrowdHealth, a crowdfunding program with no enrollment period, no restrictions on where you seek care or which state you reside, and a personal agent to handle all your claims via a phone app.
Concierge medicine and virtual visits have taken a major leap in popularity in recent years. The convenience of texting your doctor/app at your leisure can be very appealing.
Many concierge offices ask you to pay them for their primary care services at a monthly subscription rate and eliminate the cost of office visits, some procedures, and lab work depending on the office. In this instance, you would only need to pay out of pocket for prescriptions, but you may still want to seek out an insurance policy covering you in the event of a hospitalization, surgery, or emergency room visit.
One Medical offers telehealth plans and is similar to a concierge practice for those on the go who may not be located in one place for a long period of time, or for those frequently traveling to more distant destinations.
Don’t forget about the Health Savings Account!
For those looking for other places to invest earnings tax-free, a Health Savings Account (HSA) is a must!
To qualify for an HSA you must purchase a high-deductible health insurance plan through the Marketplace. These are plans which have the lowest monthly premium but will cost the most out-of-pocket at the end of the year if you end up with a considerable amount of medical expenses.
With an HSA, you can contribute up to $3,650 with single coverage—or $7,200 as a family—tax-free per year. This money can be spent out of this account for any health-related expense, even prescriptions and over-the-counter medications are included.
Unlike traditional investment accounts, there are no limits on how much can be withdrawn on the account per year, nor are there any restrictions on how much time the money is in the account. However, like other investment accounts, the money can be invested into the stock market and grow over time, just like your IRA. This is a great option for someone planning to rely on these funds for all healthcare related needs in retirement, avoiding the fear of the egregious cost of healthcare coverage at retirement age.
Too many people delay retirement due to the fear of health insurance premiums weighing heavily on their monthly budget. Set yourself up for success and take control of your future with these little tips like early contributions to an HSA.
Disability Coverage
Maybe you wish to pay out of pocket for all your health care needs but are worried about an unforeseen situation that puts you out of work for an extended period of time or you would like to supplement your insurance policy also in the instance of an unfortunate event.
Policygenius offers disability insurance for an affordable price and you can select all the parameters matching your ideal price with your ideal amount of coverage and term.
Disability insurance is not centrally regulated. Therefore, you can keep this policy while moving across state lines and regardless of your future employment situation you can continue with this policy.
A quote can be obtained in minutes, and you won’t even have to speak with an agent.
Dental and Vision
Dental and vision insurance policies are not centrally regulated and don’t require the Healthcare Marketplace. These can be purchased through any commercial insurance agent’s website.
These plans also cross state lines and can be continued regardless of employment status. It is also beneficial to stay with these plans for extended periods as the level of coverage increases the longer the policy is held.
For your convenience, these plans can be purchased in addition to your traditional health coverage via the Marketplace.