Self-employed individuals often find themselves facing additional challenges when trying to obtain health insurance. In contrast to the pool of “employees” in the corporate world, self-employed and small business owners are left out of that avenue for medical coverage. The costs of health insurance for self-employed individuals are high, and people are opting for medical sharing as being both more cost-effective and beneficial.
Health Insurance Costs for Self-Employed Individuals
The self employed health insurance cost varies widely based on various factors such as age, location, the size of his or her family, and the kind of coverage selected. The average monthly premium for individual health insurance in the United States is around $500, and a family plan can go beyond $1,400 per month.
Self-employed health insurance usually does not include out-of-pocket expenses, such as deductibles, copayments, and coinsurance. Since HDHPs have a lower premium but higher deductibles, higher copayments, and higher coinsurance, self-employed individuals may be exposed to high medical bills. Therefore, most try to find alternative ways to alleviate these financial burdens and find something that is beneficial and cost-effective.
Why Traditional Health Insurance Might Not Be Ideal
Traditional health insurance plans are, as a matter of fact, very confusing for self-employed people. Many such plans have limited provider networks and, therefore, are not very accessible to preferred healthcare providers. Furthermore, ever-increasing premiums can consume quite a share of earnings, leaving little else to spend money on, leaving many self-employed people financially vulnerable.
Another disadvantage is inflexibility. Traditional plans normally contain coverage of services that may not be in line with the specific needs of the self-employed individual and hence overpay for unnecessary benefits.
Medical Sharing Plans: A Cost-Effective Alternative
Medical sharing plans, commonly referred to as health sharing plans, are rapidly becoming popular options for people such as freelancers, small business owners, or self-employed looking for an alternative to traditional insurance.
The medical sharing plan is a community-based model where people pool in and share their medical bills. Unlike paying premiums to an insurance company, participants contribute a monthly share to the common fund from which the medical expenses of the members are paid.
One of the many benefits is that it’s very affordable. The monthly contributions are usually much smaller compared to traditional insurance premiums and help self-employed people save money. For example, a single adult can pay as little as $150-$300 per month for a medical sharing plan.
In a medical sharing plan, members have the discretion to choose their desired level of medical coverage. This flexibility allows self-employed professionals to pay only for medical services that they likely will use. Over and above, such plans usually offer the avenue of choosing any healthcare provider without the need to stick within a network.
Medical sharing plans provide predictability and peace of mind. They don’t cover everything- pre-existing conditions or routine medical services but are best suited for healthy individuals in need of medical insurance for unforeseen medical events.
Conclusion
Medical sharing plans offer a low-cost, flexible, and community-activated alternative for self-employed professionals who have found traditional health insurance to be too expensive or restrictive.
These plans offer lower monthly costs and more flexibility, giving self-employed professionals the ability to manage their healthcare expenses while still having quality care. By taking this practical step towards balancing low costs with adequate coverage, self-employed individuals can get the right kind of support for their medical needs.
Disclaimer: MPB.Health memberships are a non-insurance solution designed to provide access to healthcare services. To determine if this aligns with your specific needs, we recommend consulting a certified expert advisor.
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