The ins and outs of Health Insurance when You're Self Employed
By: Vlad Ehrsam

When you're self-employed, and meet your own health insurance bills, it can work out to be quite expensive. And in the absence of insurance benefits you'd get as full time employee in a company, it can exasperate you trying to get it, in the bargain. So before you start looking around for health insurance, here are some things you'll need to look for.

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.

Health insurance for the self employed comes with its own phraseology which you need to understand so that you can know the benefits of each plan before you choose one.

HMO. This is a common phrase that is heard quite often. An HMO is a managed care plan. This does often cost a little bit less than a PPO (more about that next), but they are often more restrictive. Additionally, they are rated lower by most insurance ratings. Most HMOs require that you have a primary care provider and then require that you are referred to specialists by the provider.

PPO. This type of insurance plan is one that offers you wider choices within a network. You can see ay provider in the network (most companies have a very wide network) and they are very handy if you happen to fall ill while traveling. You can go outside the network, but you will have to pay a little more up front to do this. An EPO is similar, but there is no coverage outside the network (this usually isn't offered to the self employed anyway).

Co-Pay. This is the money that is paid up front and usually ranges from $15 to $25. A variation on this is to pay 20% of the bill until you reach your deductible. Thereafter you pay nothing or a very nominal co-pay. Many plans have different co-pays depending on whether you make an office visit, an emergency room visit or are buying 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 know what you are looking for, compare coverage. See if maternity is covered. Check to see if chiropractic visits and mental health care is covered. Read the plan benefits to make sure that all of the things you feel you might need are covered by the insurance plan you choose. No plan is ever perfect, but it is possible for you to find one that is close.

Article Source: http://www.ArticleJoe.com

Vlad Ehrsam is the chief writer for, and editor of Full Info on Business, there's a wealth of knowledge on the website, plus why not sign up for the free Business newsletter.
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