Summary
As a self employed person with an existing health condition, because of the Affordable Care Act, (sometimes referred to as "Obamacare") you can obtain individual health insurance despite an existing health condition or a history of one.
The following alternatives are worth exploring as a means of getting less expensive, and possibly more includsive, coverage. Click on the link for information about each.
- Join An Association That Provides Health Insurance
- Become a small group.
- Go to work for a company that provides health insurance to employees.
If you are the only employee of your business, your options are the same as those of an individual who doesn't work for an employer. This means that unless the state you live in requires insurers to offer health insurance without regard to your health, you probably won't be able to obtain insurance from the private market. However, you can obtain insurance either through a Pre-existing Health Insurance Plan or a High Risk Pool. To learn more, click here.
NOTE:
- As self employed person, you can deduct 100% of health insurance premiums from your self-employment earnings - and this cannot be taken away by the Alternative Minimum Tax. If you are eligible for any employer-subsidized health plan, including your spouse's, you aren't supposed to claim this deduction, even if you aren't on your spouse's plan.
- You can also set up a tax advantaged medical savings account.
- For other means of obtaining health insurance despite an existing health condition, click here.
To Learn More
Join An Association That Provides Health Insurance
Professional Associations: Some professional associations offer health insurance to members and members' employees. Such associations tend to be in professions that require an advanced degree or form of licensing such as doctors, lawyers, dentists or architects. Check with your professional association and other associations available to you.
Associations of self employed people: The following associations of self employed people offer health insurance. The associations are listed in alphabetical order. We do not have first hand experience with any of these associations and our listing them should not be taken as a recommendation. Please share any practical information you learn about, or experience with, these organizations. Please also share the identities of any other reputable organizations you learn about: Survivorship A to Z
- The Freelancers Union is a national membership association originally funded by the Ford Foundation for people who are self employed. It was formerly known as Working Today. To join you must show proof of your self employed status. www.freelancersunion.org in New York: 718. 222.1099. Outside NY: 800.856.9981
- The National Association for the Self-Employed (NASE) is a national membership association for people who are self employed. Tel. 800 232 6273, www.nase.org
- United Service Association For Health Care, a members only association that includes self employed people. Tel.: 800.872.1187, www.usahc.com
For a list of associations by industry, see: www.businesstown.com/associations/index.asp
Become A Small Group
Form your own small group if this is an option.
Most states allow the employees of small businesses to qualify for group-based insurance.
In some states, such as Washington, self-employed people can form a group of one. You have to submit tax forms to prove you really are a business.
Most states allow as few as two people to be considered to be a group -- which could mean you cannot be denied coverage because of your health history.
To learn the situation in your state, see www.healthinsuranceinfo.net
- You may be able to qualify for an employer group policy if you hire an assistant to work the minimum number of hours per week that would qualify for an insurance company's standards (perhaps as few as 17.5 or as many as 30 --depending on the state in which you reside). You'll also have to pay the employer's share of Social Security taxes. The cost of an employee can be a good deal less than the major expense that can be associated with a serious health condition.
- Consider joining forces with someone who works in your same field or a complementary one. The type of entity you create should be decided in a discussion with an attorney.
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There may be a pre-existing condition exclusion in the policy for up to 12 months. If there is no more than a 63 day break in coverage between your old policy and your new one, the pre-existing condition period exclusion will be reduced by the amount of "creditable coverage" you had thanks to a federal law known as HIPAA.
To Learn More
Go To Work For A Company That Provides Health Insurance
It may even make sense to take a job that pays less than your skills would normally earn to obtain health insurance.
Large employers and local, state and federal government agencies tend to provide the best benefits -- including health insurance.
There is no job that isn't performed by employees of a large employer or a governmental agency. Even jobs we think of as independent, such as waiters and gardeners, exist in large companies and governments.
If you want to continue your self-employment situation, look for an employer that offers health insurance to part time employees. For instance, FEDEX. You can put in the hours needed on the job, and still have time to pursue your own business.
As described in more detail in our information about Seeking New Employment you cannot be denied a job just because of your health history.
To Learn More
More Information
Seeking New Employment