Self Employed Health Insurance

Understanding Self Employed Health Insurance

The customers are required to purchase health insurance plan with the help of regular periodic payments submitted to the insurance company. For self-employed people, there are specially designed policies available with all major health insurance providers.

Health insurance for self-employed individuals is comparatively more expensive than other health insurance plans. The reason due to which a higher price tag is attached to self-employed health insurance is that health insurance rates are inexpensive when the risk is pooled and distributed among a large group of people. Even distribution of the risk is the chief contributing factor for the affordability of group health insurance plans, which is not possible with self-employed health insurance plans.

However, since 2002, self-employed health insurance costs have become tax deductible at a rate of up to seventy percent. Self employed health insurance plans offer policies that bring together the benefits of indemnity and managed care health insurance. This allows the self-employed people to obtain a health insurance policy without compromising good cost and good care.

With most other companies, you’ll find inadequate plans with minimal coverage, high premiums, and poor service. You’ll find self-employed health insurance policies that are invitingly priced and that offer benefits you would assume cost more. The quality of these self employed health insurance policies simply can’t be overstated.

The Self Employed Insurance Group works in cooperation with nationally known and well established insurance companies.  We are a direct underwriter and stress the fact we offer comprehensive major medical plans for the self employed; not discount plans.

The difference between a “self-insured health plan” and a “fully-insured health plan”

Many employers that sponsor group health plans decide to buy a group health insurance policy from an insurance company or HMO. Such plans are referred to as “fully insured” group health plans. Typically, health plans sponsored by small employers are fully insured. Other employers that sponsor group health plans decide to “self-insure.” That is, the employer pays claims under the group health plans out of the employer’s own funds. Typically very large employers sponsor self-insured group health plans.

Your protection under these types of health plans

Federal law protections for consumers in employer sponsored group health plans apply whether the group health plan is fully insured or self-insured. Additional state protections apply only to fully insured group health plans. The American Diabetes Association has worked to pass health insurance provisions in 46 states that require fully insured health plans — those regulated by state governments — to provide coverage for diabetes medications, supplies, and services. These laws do not apply to policies that self-insure, as they are regulated through ERISA and the federal government.

Check with your employer to find out whether group coverage is available in your workplace. If health insurance coverage is available and you choose to elect it, you should receive a benefit plan summary explaining what will be included in your health plan. Be sure to find out what diabetes supplies and services are included in your health plan.