It holds significant importance, especially if you’re seeking individual or family coverage, as the upcoming weeks might be your sole opportunity for 2024 enrollment, unless specific exceptions like relocation, marriage, divorce, or having a child apply. Anthony Lopez, the vice president of individual and family and small business plans at eHealth, a private online health insurance marketplace, emphasizes that the nationwide open enrollment period is the prime time for individuals to assess their options and enroll in a new plan.
Choosing health insurance without the guidance of a human resources department can be overwhelming for self-employed individuals. Instead of feeling frustrated, here are responses to common questions that self-employed individuals often have during open enrollment.
For information, freelancers, consultants, and independent contractors can visit www.healthcare.gov to explore and enroll in flexible health coverage either through the federal government or their state, depending on their location. Working with an insurance agent or a private online marketplace is also an option to navigate through the available choices. To qualify as self-employed, there shouldn’t be anyone working for you; otherwise, the SHOP Marketplace for small businesses might be applicable if you have at least one employee.
Keeping track of deadlines is crucial, as most states set a deadline of December 15 for coverage starting on January 1. Alexa Irish, co-chief executive of Catch, emphasizes the importance of promptly signing up for benefits and ensuring the first month’s premium is paid on time to avoid any issues. For those already enrolled in a marketplace plan, changes can be made by December 15 for coverage starting on January 1. Failure to take action will result in automatic re-enrollment in the previous year’s marketplace plan.
Contrary to common assumptions, many self-employed individuals may qualify for tax credits and other savings. Alexa Irish advises individuals to explore these options, as a significant percentage of marketplace enrollees received an advance premium tax credit in February 2023.
When making coverage decisions, factors to consider include family needs, coverage purposes, and a thorough comparison of plans in terms of coverage options and costs. This analysis should consider copays, prescription drugs, coverage of doctors, and out-of-pocket maximums.
For those planning to grow their business and hire employees, self-employed individuals can enroll in a small business plan at any time of the year, providing flexibility beyond the open enrollment period for individual and family plans.
The cost of health insurance for the self-employed varies based on the chosen plan, covered individuals, and eligibility for subsidies. On average, the total monthly premium before tax subsidies in February 2023 was $604.78, with consumers paying an average total premium of $123.69 per month after tax subsidies.
Assistance is available for those navigating policy options. Certified agents, or brokers can provide guidance and detailed information about available plans, ensuring individuals don’t have to go through the process alone. While some agents may offer non-government exchange plans, premium tax credits and other savings require enrollment through a state or federal marketplace.
High-deductible health insurance plans are gaining popularity, especially among young entrepreneurs. These plans, with higher deductibles and lower premiums, may be suitable for healthier individuals who don’t frequently visit doctors. Additionally, qualified high-deductible plans allow contributions to health savings accounts (HSAs). Factors to consider when deciding on a high-deductible plan include frequency of doctor visits, affordability of out-of-pocket expenses, network coverage of doctors, and out-of-pocket maximums. It’s crucial to ensure financial capability to cover high-cost medical events if opting for a high-deductible plan.
Anthony Lopez advises individuals not to delay in reviewing coverage options, which may also include dental and vision insurance, to maximize the chance of getting personal questions answered by licensed agents during the open enrollment period.
