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The ins and outs of Health Insurance when You're Self Employed

By: Vlad Ehrsam

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.

First of all, look online. There are plenty of Web sites that can help you compare different health insurance plans. Some sites even rate the plans. You should carefully look at what each plan has to offer before signing up. The cheapest plan may not always be the best. It may have a much higher deductible or it may not cover the doctor you already see. Get an idea of what is out there, and then decide based on what is best for your situation.

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?

HMO. You will hear this phrase quite frequently. HMO is a managed care plan, often costing less than a PPO (see following paragraph) but that has more exclusions. In addition, it carries a low rating. Most HMOs stipulate that you have a primary care provider who is responsible for referring you to specialists if necessary.

PPO. This plan gives you a wider range of choices within a specified network. You can consult any provider listed in the network (most companies have an extensive list). This comes in handy when you are traveling and need to consult a doctor. You may consult a provider not listed on the network but for this, you will be required to pay extra up front. An EPO works along the same lines except that there is no cover outside the network (EPOs are not available to self employed persons).

Co-Pay. A co-pay is the amount of money you pay up front. This usually ranges from $15 to $25. Another variation on the co-pay is to pay 20% of the bill until you meet your deductible, and then you pay nothing or a very small co- pay. Most plans specify a different co-pay for office visits than for emergency room visits and prescription drugs.

Deductible. The deductible is the amount of money you pay out of pocket. If you have a co-pay, this usually does not go toward your deductible. If you are on a 20% plan, then your office visits do count as part of your deductible. Just as with auto insurance, the higher your deductible, the lower your premium.

Once you have identified your needs, look at the various scopes of coverage on offer. For example, is maternity, chiropractic visits or mental health care covered? Do the benefits of the plan adequately cater to your needs? In the end you may not find the perfect health plan, but you can come pretty close.

Article Source: Main Articles

About the author: Vlad Ehrsam is the chief writer at Full Info on Business, it's one of the webs most up to date Business sites, their free newsletter is well worth signing up for too.
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