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Guide for Understanding Self-employed Health Insurance for Small Business Owners

Being your own boss has a lot of benefits, but it also means more responsibilities. Learn more about self-employed health insurance for small business owners.
Friday, 31 May 2019
Guide for Finding Self-employed Health Insurance Guide for Finding Self-employed Health Insurance Shutterstock

The small business owner faces unique situations when searching for self-employed health insurance in Arizona.  This post will hopefully make health insurance for small businesses a little less complicated.

Self-employed Health Insurance

Being your own boss is exciting and rewarding. However, self-employment is not without challenges.

One of the biggest challenges can be finding the right self-employed health insurance. Many freelancers and small business owners in Arizona are tempted to go without health insurance rather than deal with the hassle (and expense) of finding a health policy they can afford.

But, some advisers recommend health insurance as the top insurance priority for those who are self-employed.

Let's take a look at how to find the best health insurance for small business owners.

Do You Qualify as Self-Employed?

First, you need to ensure you meet the qualifications for being self-employed. The nature of your employment helps determine the health insurance policies for which you qualify.

Plus, you'll know how your self-employed health insurance qualifies for tax deductions.

According to Healthcare.gov:

You are self-employed if you own and operate a small business that takes in revenue but does not have any employees.

The word "employee" is the critical determinant here.  Employees work for you, and you report their pay on a W-2.  Employees are not independent contractors you pay and indicate their fee on a 1099 form.

If you have employees, then you don't qualify for self-employment health insurance.  Don't worry; you still have excellent group health insurance for small business available to you.  Contact us to discuss and get free quotes. 

Some of the most common self-employed roles include consultants, freelancers, and independent contractors.

As a self-employed Arizona entrepreneur with no employees, your best bet for health insurance is the Health Insurance Marketplace, i.e., Obamacare. You don't need an employer or a group health plan to ensure you have health coverage.

How Much Health Insurance Do You Need?

One perk of being a self-employed business owner is your freedom to choose how much and what type of coverage you want, based on what's available in your area. You aren't stuck with the policy offered by an employer.

Self-employed insurance policies vary from high-end with all the bells and whistles to lower cost basic or catastrophic coverage.

At a minimum, self-employed business owners should have a catastrophic health insurance policy. You can be in excellent health, but you never know when an emergency can impact your health.

A catastrophic health insurance policy helps covers expenses in the event of emergency surgery, ER visit, or another unexpected health event.

How Do You Navigate the Marketplace?

The marketplace and self-employed insurance options can feel like a confusing maze of endless comparisons. It's tough to know which type of policy is best for your situation.

  • If you suffer from recurring health issues or want a higher level of coverage, you might need a policy with higher premiums.

  • However, if you want to lower your deductible and you're comfortable with fewer in-network benefits, you might choose a policy with lower monthly premiums.

You also need to know how each type of health insurance policy expense works with your taxes. As a self-employed policyholder, you can deduct part or all of your premiums when it comes to tax time.

Don't Skip Self-Employed Health Insurance!

Don't think of self-employed health insurance as another business expense. It's an option you can't afford to skip.

When you work for yourself, you have to keep yourself in good health to make sure your business is successful. If you're a business owner with employees, then you know health insurance is critical to employee recruitment and retention. 

Working with an Arizona health insurance broker is the best way to help you navigate the many health insurance options available to the self-employed. Brokers know the laws and can help you determine the best policy for your specific situation.  Most importantly, a local health insurance expert can help you find quality plans at an affordable rate. 

Call us to schedule your free consultation.

Call (480) 607-7049

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Thanks so much for getting my health plan done for me.  It was a real surprise after being turned down twice, to finally get approved.  And what a relief!  Thanks again! - D. D. (Tucson)

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