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Alternative Health Insurance For Self Employed Article
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Self-Employed Should Make Health Insurance a Priority
from:Having enough and being able to afford health insurance, is one of the most nagging concerns for those who run their own business. Many small businesses don’t offer health benefits to employees if they have less than 20. It is hard and expensive enough to work for yourself, but having to pay high prices for health insurance can make life much harder. If you work as a consultant, freelance worker, and other self-employed individual you, will be allowed to deduct all of your health insurance premiums and bills off of your taxes. It is especially valuable because it is an above the line deduction for Adjusted Gross Income (AGI), so you can take advantage of this deduction even if you do not you itemize your deductions on your tax return. For those persons opening a small business, even the cheapest plan can be too expensive to pay for. Between the overhead and invested money to get your business off the ground, and the fact that most businesses take years to turn a gain, you can find your self making ends meet the first few years. But your medical bills and premiums are deductible, too. So, get a plan and have your taxes reduced at the end of the year, it will save you money in the long run for sure.
How to find Self-Employed Health coverage at a price you can afford doesn’t have to be a headache. When you leave your employer to venture forth on your own, take advantage of your COBRA rights. This law allows you to keep your coverage for up to 18 months after leaving at a higher rate. Most employees only pay about 28% of their policy. This will be a shock to the system because your employer will no longer be paying for part of your coverage so you will be paying the whole bill yourself. So in essence, you will be paying for a higher group rate verses the original group rate on the job, but this will buy you some time in looking for a new plan. COBRA will at least get you through in case you need time to look at many policies and find one that works for you.
Lighten your financial burden before you hastily leave your current job if you can. This will allow you to have money put aside and have researched other health plans that you can go to right after leaving. If you purchase your own policy before leaving your job you will still qualify for COBRA but the rates will be lower and something you are used to. Make sure you have paid up all your debt so the money you have saved can be used to start your business and pay your insurance when you leave. If you will be working from home, save some money and designate that for your medical expenses. Most independent contract work pays weekly so that money can be used for bills and other things till you start to make more. If you are going to need a lone to start your small business, make sure you are in the green credit wise. This can up the loan amount, so you have some extra to put aside for bills. That way you can use the money saved from your job just for insurance.
Don't let time slip by you and forget to find a new insurance company if you are on COBRA. They will only cover you for 18 months and an extra 63 days past that if you haven’t. At that point they could up your rates and not include any previously existing conditions and that will just make your premium higher. So, utilize the time you have and get a cheaper plan that works for you as soon as possible. Why shell out more money and then also forget that you are going to be cut off. If you have a spouse or partner who works outside the home go on their plan. They will be getting a group rate from their employer. You might have to wait till the next eligible entry day, but that should happen before the 18 months of COBRA has run out. Have your partner ask his or her employer when they would be able to add you to the policy.
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