Health Insurance Basics for the Self Employed

When you're self-employed, and meet your own health insurance bills, it can work out to be quite expensive. And in the absence of insurance benefits you'd get as full time employee in a company, it can exasperate you trying to get it, in the bargain. So before you start looking around for health insurance, here are some things you'll need to look for.

Like where to find health insurance. Try the Internet for starters, it'll give you a basis for comparison of various types of plans available, and even rates, on some sites. Low-rate plans may look attractive at first sight, but not so good when take a closer look. They could demand more in deductibles, or exclude your personal doctor from their panel. So take your time to assess the plans and what they offer before you choose a health plan, and before you sin on the dotted line.

Health insurance for the self employed comes with its own phraseology which you need to understand so that you can know the benefits of each plan before you choose one.

HMO. You will hear this phrase quite frequently. HMO is a managed care plan, often costing less than a PPO (see following paragraph) but that has more exclusions. In addition, it carries a low rating. Most HMOs stipulate that you have a primary care provider who is responsible for referring you to specialists if necessary.

PPO. This type of insurance plan is one that offers you wider choices within a network. You can see ay provider in the network (most companies have a very wide network) and they are very handy if you happen to fall ill while traveling. You can go outside the network, but you will have to pay a little more up front to do this. An EPO is similar, but there is no coverage outside the network (this usually isn't offered to the self employed anyway).

Another option you might see, Co-Pay, works on the up-front amounts you pay. Known as co-pays, you'd make payments of around $15-$25, or optionally choose to meet your deductible by paying 20% of your bill over a gradual time-period. Thereafter, the co-pay is very little, or even nothing. You can usually expect one co-pay for consulting a doctor in the office, and quite another for emergency consultations and prescribed medication.

Deductible. This is the amount you pay from your own pocket. If you have a co-pay it does not count towards your deductible. Under a 20% plan, office visits count as part of your deductible. Health insurance is similar to auto insurance in that the higher your deductible, the lower your insurance premium.

And having identified your health insurance needs, make sure the benefits of the plan you choose meets them. Remember to check they include maternity care, consultations with chiropractors, and mental health professionals. And while getting something ideal for your needs may not be possible, you have a good chance of getting a health plan that is almost there, and meets most of your needs.