Health Insurance Basics for the Self Employed

If you are self employed and looking for health insurance, you may be in for a rough ride. Since you don't have the benefit of a company program to pay for part of your insurance, you are looking at an expensive and possibly frustrating prospect ahead. Before you rush out and spend all your savings on the first policy you find, there are some basics you should know.

Get on the net and do your research. There is a dearth of information available online that allows you to assess the different health insurance plans available. Some of the sites rate the plans to help you make a decision. Before choosing one, make sure you have researched it thoroughly. Beware of cheap plans ¡V they may have a much higher deductible or may not have your doctor on their list. Once you have all the facts then you can make an informed choice.

And when you're researching health insurance plans, you might come across some terms that explain benefits of a plan for the self-employed person. These benefits are a great aid when it comes to selecting a suitable plan. But what do they mean?

Well, if you come across a frequently used term like the acronym HMO, you'll now know it's a less pricey managed care plan that comes with more limits than its alternatives, PPO, for example. It comes with provisos that insist you first appoint a primary doctor, to direct you to other specialists for your needs, for example. And their ratings are not as hot.

An alternative you could use, PPO, is not as restrictive. It allows you to consult any doctor on its considerably large panel throughout its network. This is especially helpful if you are taken ill while abroad. And it offers the option, at an additional upfront fee, to consult any doctor you want to ¡V even those not on the network. This is like an EPO, which differs in that it doesn't include doctors away from its network to the self-employed.

Another option you might see, Co-Pay, works on the up-front amounts you pay. Known as co-pays, you'd make payments of around $15-$25, or optionally choose to meet your deductible by paying 20% of your bill over a gradual time-period. Thereafter, the co-pay is very little, or even nothing. You can usually expect one co-pay for consulting a doctor in the office, and quite another for emergency consultations and prescribed medication.

Deductible. This is the amount you pay from your own pocket. If you have a co-pay it does not count towards your deductible. Under a 20% plan, office visits count as part of your deductible. Health insurance is similar to auto insurance in that the higher your deductible, the lower your insurance premium.

And having identified your health insurance needs, make sure the benefits of the plan you choose meets them. Remember to check they include maternity care, consultations with chiropractors, and mental health professionals. And while getting something ideal for your needs may not be possible, you have a good chance of getting a health plan that is almost there, and meets most of your needs.

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