It takes a lot of research, good information and solid knowledge of the system to really get affordable or advantageous self employed health insurance. When you leave your corporate job, you should continue with the same kind of health insurance for a while; you have this right according to COBRA (the Consolidated Omnibus Budget Reconciliation Act). You can continue to pay premiums at the level of the group rates you previously had for up to 18 months after leaving your job.
Information on COBRA coverage is available with the US Department of Labor and you can refer to it in order to better understand your rights and benefits under th circumstances. The self-employed has to pay for the policy in full, which means that there will be a huge difference from the price tag paid with the employer. On the average, an employee only pays 28% of the monthly premium, as the rest is covered by the company. There is one thing you can do to limit the level of the premiums.
During the open enrollment period that precedes your departure from the company, you can file an application to continue paying for a health insurance plan that is less expensive. Get whatever you find cheaper in order to have a lower self-employed health insurance premium according to the COBRA coverage. When the COBRA benefits are over, you have to find another type of health insurance, and you are still insured for 63 days during this period.
The problem of the self employed health insurance could be solved if you have a working spouse and you can join his/her plan. This appears more rewarding financially speaking, and the premiums are often lower than the COBRA option too. Don’t make any decision unless researching it well. Good coverage for decent money is possible if you take the time to shop around.
Then, a plan with a higher deductible may allow you to make some savings in the tax-free health account. If you don’t get reimbursement by the health insurance plan or you have extra medical expenses, you can use the money in this savings account to pay for the treatments. More money can be saved if your business grows and you start hiring employees. Small businesses can get you a better form of affordable self employed health insurance than an individual plan.