What Is Self-Employed Health Insurance & Do You Need It?

1. What Is Self-Employed Health Insurance & Do You Need It?

2. Are you self-employed and don’t have health insurance? Do you even need it? Or are you a small business owner who hires self-employed individuals and are unsure if you need to cover them? Read on to find answers to the following health insurance questions: I’m self-employed; do I need health insurance? If you’re earning a taxable income without an employer or employees, such as by being an independent contractor, consultant or freelancer, then you definitely need to invest in health insurance, and finding a reputable insurance company will help you access the best deals for your circumstances, and prevent you from facing possible penalties for not being covered.

3. I employ freelancers and independent contractors; do I need to insure them? If your business employs less than 50 full-time workers, The Affordable Care Act doesn’t require you to provide them with health coverage, but of course that doesn’t mean that you can’t. When it comes to freelancers and the self-employed, however, the rules are not always the same from state to state. Typically, health coverage for self-employed persons is not required to be provided by the owner of the business paying them, but some choose to extend their group health coverage to include them.

4. What do I need to know if I offer group health coverage to freelancers? It’s important to note that as a small business owner, you’re not obliged to pay any part of the premium for group health insurance offered to freelancers, but if you do, they may then be required to report the contributions as taxable income. If you’re a freelancer and you choose to pay for your own health insurance premiums, then you may be able to deduct the cost from your income taxes.

5. Does it make a difference if I’m an independent contractor or freelancer? If whoever is paying you for your services, controls and/or directs the results of the work you carry out, and not what will be carried out and how, then the IRS will classify you as an independent contractor. The person paying you may be a client organization, or the general public, but there is no relationship akin to employer-employee. Typical examples of independent contractors would be an accountant, lawyer or doctor.

6. If you work on a temporary, self-employed basis and provide products or services to multiple organizations, then you are classed for insurance and tax purposes, as a freelancer. You may have many different clients and work on a variety of projects according to your schedule. Typical examples of freelancers would be graphic designers, journalists and copywriters. For health insurance purposes, if you’re an independent contractor or freelancer, you’ll likely be responsible for purchasing your own coverage, and in most cases it’s essential for protecting you from the costs that can mount should you become sick or injured and can’t work for any length of time.

7. So, as a freelancer or independent contractor, should I get health insurance? To protect yourself in the event that you can’t work and earn your regular income because you’re sick or laid up in bed recovering from an injury, you should definitely purchase a health insurance plan. To get the best self-employed healthcare coverage for you and your specific circumstances, talk to an insurance expert today.

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