One of the main stumbling blocks to going freelance is finding affordable health insurance. We’ve previously covered the basics of health insurance for freelancers, and then we updated that article with new information on freelance writers and health insurance. Here, we’ll discuss some new health care options for freelancers and Independent Contractors.
State and Local Programs
Many states have programs that subsidize health insurance, even for working adults. One freelancer reported that Massachusetts, for example, offers different programs for different income levels. This is important to note, as many people tend to assume that these programs are solely for those who are not working, and that may not be the case. Please be sure to thoroughly research the options available in your individual state.
Health Savings Accounts and High Deductible Health Plans
A health savings account allows you to pay for health services with before- tax dollars.
A high deductible insurance plan is a plan with very low monthly cost and a very high deductible. It is designed to cover major injuries and illnesses. Some ICs are finding the combination of the two to be very useful, as the money saved allows them to pay for smaller items (well child visits, vaccinations) with the HSA money, but also prepares them for more major health occurrences.
“Change”
When I started this series on health insurance for freelancers, many readers insisted that a new health system is the only hope that freelancers and independent contractors have. For example, one reader said “What every freelance writer should be doing is to write to his/her congressperson and say ‘we want access to affordable health care!’ That's the only way to change the non-system.” Another insisted that “I'm amazed at the seemingly bright people who are ‘afraid of government control’ when it's insurance control that's crippling access to health care.”
An interesting article on freelancers in the City Journal has a quote: “The answer for many is to look to universal health insurance, and during the presidential campaign, Barack Obama had his sights set squarely on the self-employed when he proposed a guaranteed-issue public plan—with benefits similar to those available to members of Congress—that would be available to individuals and small businesses that wanted to buy in.”
Those who agree with this standpoint (and even those who disagree) should contact their legislators.
Hopefully these new options help some writers to make the transition to full time freelancing. Best of luck!
