Understanding Health Insurance for the Self Employed

If you are self employed and looking for health insurance, you are probably overwhelmed by the information out there. You may think that finding affordable health insurance for the self employed is an impossible task, but the truth is, it probably isn’t as difficult as you think. You will likely find, once you understand what goes into health insurance, as well as what the jargon means, that it can actually be easy to figure it out. Here are some things that you should know¬†about affordable health insurance for the self employed.

Why You Need Health Insurance

First of all, it should be mentioned that if at all possible, you need health insurance. Just one doctor’s visit can be $100 or more and a minor procedure can be well over $5000. Most people don’t have that type of money around to pay out of pocket, so this is where health insurance will step in. Your health insurance will cover a large percentage of these costs and that $100 doctor’s visit may turn into a $20 or $30 one, which is much more affordable for most people.

Understanding Coverage

Now that you know you need coverage, you will need to understand the coverage. At a basic level, coverage will refer to what medical services will be paid for by your insurance company. So, if your insurance company offers coverage for a specialist up to $10,000, anything over that amount will need to come from you, out of pocket. Many people will never hit those limits, but some do and if you suspect you may be one of them due to a chronic condition, you will probably want to go for higher coverage.

HMO or PPO?

You will also probably see the terms HMO and PPO when looking for health insurance. These are two types of plans. The first, HMO, stands for Health Maintenance Organization and is one plan option. Typically HMOs are the cheaper option but they are much more restrictive. For instance, you may only be able to choose certain doctors or hospitals. A PPO, or Preferred Provider Organization, will allow you to choose any doctor you want, but is a bit more expensive.

Thanks to new changes in health care in the US, you can now compare and contrast different health plans right online. That should be your first step when looking for affordable health insurance for the self employed.

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