Affordable Health Insurance for Self-Employed

For self-employed individuals and small business owners, finding affordable health insurance is a constant challenge.

Affordable Health Insurance for Self-Employed

For starters, the burden of finding and funding health coverage falls entirely on you. There’s no HR department to impose the corporate ‘one-size-fits-all solution on you.

But on the upside, as a self-employed independent contractor or small business owner, you have unlimited freedom to design a suite of health benefits that suits your needs. Not the convenience of an employer.

In fact, for many independent contractors and business owners, the best health plan may not be health insurance at all!

In this blog post, you’ll learn why traditional health insurance has become so unaffordable.

You’ll also learn about an increasingly popular and much more affordable alternative to traditional health insurance products: health sharing

You’ll learn how health sharing can save up to 50% compared to the unsubsidized cost of a traditional “Obamacare” health insurance product.

And finally, you’ll learn whether health sharing may be a good solution for you and your family, and how to sign up.

Compare Pricing on the Best Insurance Plans Available

The Rising Cost of Affordable Health Insurance for the Self-Employed

Health insurance is becoming increasingly unaffordable, with high premiums and deductibles making it difficult to maintain coverage.

According to KFF, the average cost of employer sponsored health insurance has gone up to an average of $24,000 since last year. This is what makes shared cost health insurance an affordable option for small business employers.

While high deductibles are a problem you can potentially address with savings, HSAs, and occasional borrowing, high premiums are not.

Often, these traditional plans cover far more than the average, healthy person actually needs. State and federal law requires insurance carriers to cover things like drug and alcohol addiction services and gender reassignment surgeries.

They also force carriers to cover routine care and doctors’ visits and other things that would be much more cost-efficient if they were left out of insurance altogether.

But legislators keep larding up health insurance with these needless big-government mandates, which push insurance premiums higher and higher every year.

For self-employed people and small business owners who don’t get a subsidy either from their employers or the government, the financial strain resulting from these high premiums is even more pronounced.

The best health coverage may not always be the most comprehensive plan, but a more catastrophic-focused plan with lower monthly costs that you can actually afford.

So you can actually keep it in force, and have a little cash left over so you can pay for the minor things yourself.

That’s where health sharing can be a great solution.

How Health Sharing Plans Save Money

Health sharing programs offer a way to manage healthcare costs without the high premiums associated with traditional health insurance.

Health sharing organizations have multiple cost structure advantages compared to traditional health insurance:

Unlike health insurance, health sharing plans don’t share costs for pre-existing conditions right away. Instead, they typically have a waiting period before the plan will provide sharing benefits for these costs
They are organized as non-profit 501(c)(3)s, not for-profit corporations
They typically have a waiting period of around 90 days before they will share the cost of surgeries, except those needed to treat injuries from accidents
They are free to exclude needless costs that insurance companies must incur because of government mandates
They have fewer state compliance requirements.

These community-based alternatives allow members to share the cost of medical expenses, leading to lower monthly payments. In fact, it’s very typical for our clients to save 40 to 50% each year compared to unsubsidized Obamacare insurance premiums, just by switching to a health sharing plan.

Do a side-by-side comparisons for health sharing costs versus health insurance costs.

How You’ll Benefit from Health Sharing

Cost Savings: Members enjoy significant savings on monthly costs compared to traditional health insurance.
Freedom of Choosing Your Own Provider: Without network restrictions, you can choose the provider that best meets your needs.
Preventative Care Focus: Many plans encourage and incentivize preventative care, leading to better health outcomes.
Year-Round Enrollment: Health sharing programs differ from standard health insurance by offering year-round enrollment. This allows self-employed individuals to sign up for a healthshare group and access savings anytime. Note, initial waiting periods may apply before the plan covers costs for pre-existing conditions.

What if You Have Pre-existing Conditions?

For those with preexisting conditions, a traditional health plan may be the most affordable option.

These plans must take all applicants during open enrollment or during special enrollment periods, regardless of your medical condition.

So if you have a significant medical issue that you need covered right away, a traditional health insurance product may be a better fit for you, though it may also be twice as expensive.

That being said, some people with pre-existing conditions may still prefer health sharing because of the cost savings. They are willing to take on the risk of paying for issues related to these conditions for the cost savings of switching to health sharing.

Health sharing plans will still share costs for everything else their plan normally shares for, other than those specific pre-existing conditions. So you can still get significant value out of the catastrophic sharing benefits of a health share plan.

You should just be aware of the risk, and be prepared to pay for some things out-of-pocket, or have other protection in place, such as VA health benefits.

Beyond Subsidies

If you qualify for a significant Obamacare subsidy, traditional health insurance might be a better financial choice for you.

However, health sharing offers benefits beyond financial savings, such as a sense of community, and more freedom to choose your own doctor. These advantages can make health sharing more appealing, even for those who qualify for subsidies.

Advantages of Health Sharing over Traditional Insurance

Community Support. Beyond financial savings, health sharing members benefit from a strong sense of community. This network provides not only emotional support but also practical advice and shared experiences, which can be invaluable for maintaining a healthy lifestyle.
Flexibility and Freedom. Health sharing programs often offer greater flexibility in choosing healthcare providers. Without the constraints of network limitations, members can seek care from a wider range of doctors and specialists, ensuring they receive the treatment that best suits their needs.
Value for the Healthy. For individuals who are generally healthy and have minimal healthcare needs, health sharing plans are particularly attractive. These plans are typically designed to share costs for catastrophic events, which is what most people need most.
Preventative Care Incentives. Many health sharing plans emphasize preventative care and healthy living, offering programs and incentives that encourage members to maintain their health. This proactive approach not only helps individuals stay healthy but can also lead to long-term savings by reducing the need for costly medical interventions.

Compare Pricing on the Best HealthShare Plans Available

Should You Switch to Health Sharing?

Health sharing isn’t for everyone.

It’s not optimal if you have significant pre-existing conditions, or if you qualify for a large subsidy under the Affordable Care Act. As we discussed, if either situation applies to you, you be better served by a traditional Marketplace health insurance product – even though it may cost more on a monthly basis.

The extra protection you get by covering your pre-existing conditions is likely worth the cost, since it may prevent tens of thousands or even hundreds of thousands of dollars in medical costs if you do need care.

But if you’re currently in good health,don’t qualify for a significant Obamacare subsidy, even if you do but are looking for more than just financial savings, health sharing may be the superior choice, and one that better aligns with your own personal values.

By prioritizing preventative care, fostering community support, and providing financial relief, health sharing programs represent a viable and attractive option for managing healthcare in a way that traditional insurance often cannot match.

Whether you are most interested in the lower cost, community, or flexibility in care, health sharing is the preferred choice for those looking to take a different approach to their health coverage.