What is Self-Employment Health Insurance?

Self-employment health insurance is medical insurance is developed and issued to individuals who choose to work for themselves rather than for an employer. While health insurance for the self-employed was once relatively difficult to obtain, more options have become available since the beginning of the 21st century, with many well-known health insurance providers creating individual and personal family coverage options that rival the scope of coverage offered in group plans. As more people choose to become self-employed, there is no doubt that providers will become more competitive in seeking clients who choose to make a living without working for someone else.

While there are more options for self-employment health insurance than ever before, there are still a number of challenges associated with obtaining and keeping the coverage. Unlike many group plans that are extended without any pre-existing condition clauses, or at least impose a short waiting period for any pre-existing condition, the individual plans may permanently exclude pre-existing conditions or choose to deny the application altogether. In addition, there may be only a few insurance providers licensed to offer self-employment health insurance in the area. This means less competition and thus limits the options of the individual who works for himself or herself in terms of the benefits that can be obtained.

Along with the differences in benefits and coverage, there is also the issue of cost. Locating and securing affordable health insurance for the self-employed can be somewhat difficult to accomplish. In order to minimize the amount of the monthly premiums, it is not unusual for people working for themselves to opt for the highest deductibles allowed under the terms of the coverage. This action requires people who work for themselves to keep substantial reserves on hand to cover the portion of medical costs not covered by the basic coverage of the insurance policy.

In some localities, it is possible for people to form a loose cooperative and seek group health insurance for the self-employed. While not available everywhere and not offered by all health insurance providers who offer self-employment health insurance, this approach can result in the ability to secure lower deductibles. This type of group plan may also provide more affordable monthly premiums, and co-pays on services such as prescription medication, dental and vision riders that may also be available with the main health coverage.

As more people choose to develop their own home businesses and work for themselves, the availability of self-employment health insurance will likely increase. Hopefully, more competitive premiums and a wider scope of benefits will also become available as the demand for personal and family health coverage by the self-employed continues to rise.