Self Employment Does Not Mean Becoming Uninsured

Article Written By: J.D Theis

Time and fate can bring people to different places, opportunities can even make those who are employed opt to become self employed. Self employment is becoming more and more popular nowadays; it is usually equated with entrepreneurship and gaining profits at your own time table. However, becoming self employed in the perspective of health insurance companies is adding up to your incurred risks. Most insurance companies deem that those who are unable to find a job in an existing firm is more likely to be negligent in paying his or her insurance dues. But not every self- employed is like that, here are some tips in maintain your policy even you are self employed.

The first step you should take is to keep your insurance policy. Under the Consolidated Omnibus Budget Reconciliation Act of'86 it is mandated that you can leave your job and keep your current coverage for up to months at group rates. This applies as long as your previous company employs 20 or more people and the reason for your leaving is not being fired due gross negligence or incompetence. However, choosing to go self employed would make the premium rate of your medical insurance shoot up by around 50%- 72% because while being employed and insured at group rate you are just paying the 28% of the policy premium.

The second best step is to find the perfect opportunity in the open enrollment season of your insurance policy and sign up for the most affordable health insurance you can find. Signing up for a cheaper insurance policy before leaving your job will put you in a better position after becoming self employed.

The last step you should take after becoming self employed is to find a reputable insurance company through comparing their rates and coverage packages through online quotes and agents. If you can do your homework well enough, it is most probable that you can spot a fitting insurance policy that will cater to your needs but is still affordable in your self employed status.

Low cost health insurance can also be gained through HSAs or health saving accounts. In the HSA you deposit pre-taxed dollars to compensate for the future expenses that are not covered in your cheaper insurance policy.

About the Author

In order to get further clarification on affordable health insurance and understand its benefits better, log in to Insurancecaredirect.

You Can Link Directly to "Self Employment Does Not Mean Becoming Uninsured" by using the url:
http://www.allbestarticles.com//finance/health-insurance/self-employment-does-not-mean-becoming-uninsured.html

This Article Has Been Published on Sun, 15 Nov 2009 and Read 177 Times

Find All Best Articles at http://www.allbestarticles.com

Rating: Not yet rated

Comments

No comments posted.

Add Comment

You do not have permission to comment. If you log in, you may be able to comment.

Related information on Health Insurance

Major Medical Health Insurance Policies and Plans
Moving Abroad? - Get Expat Medical Insurance Before You Go
Short Term Medical Insurance For Patients
Avail Personal Extended Health Insurance for enjoying an overall health cover at all times.
Consider About Catastrophic Health Insurance Plans
Find Out More About Catastrophic Insurance
Do You Have Health Insurance?
Common Myths About Health Insurance
All About Sportspower Trampolines
Denied Insurance Coverage: Be Composed and Proceed with Perseverance
Diabetes Insurance: Helping out the Diabetics from Distress
Find the easy way to get Medicare supplement insurance
Health India insurance to meet emergency medical situations
Health India Coverage is a smart move for your family's well being
7 Most Expensive Mistakes When Choosing A Health Care Plan
Important Tips for Keeping Your Children Healthy
How to Protect Yourself and Your Confidential Medicare Information
Prepare for any possibility
Guard Yourself from Scam Health Insurance Companies in California
The Impossibility of finding low cost Health Insurance!
Health Insurance Ratings To Help Pick A Provider
Online Help On Health Insurance
Health Insurance, do I really need it?
The Reasons Behind The Increasing Costs Of Healthcare
What Is Health Insurance?