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Not having health insurance means taking huge risks.
key point
- If you don’t have health insurance, you could face catastrophic medical bills.
- You can get health insurance in a few different ways.
- You can get coverage through your spouse’s employer or buy your own plan through the health insurance marketplace.
There are many benefits to being a freelancer. For one thing, you can often set your own hours and schedules instead of being locked into preset times. If you have multiple obligations, such as caring for children or aging parents that make it difficult for you to stick to a standard work schedule, then freelancing may be a good option.
Plus, as a freelancer, you’re not tied to a specific office location. If you want to move to an area of the country where the cost of living is lower, you may have the option to do so.
But as a freelancer, you may encounter certain pitfalls. On the one hand, you may be struggling with a lack of paid time off. While you can always add to your savings account to try and give yourself that option, it can be difficult to take a break from a heavy workload, not from a financial standpoint, but from a workload standpoint.
Another downside to being a freelancer? You don’t get employee benefits like retirement plans and subsidized health insurance. The latter is a big deal because buying health insurance on your own can be expensive.
In a recent Everly survey, only 58% of freelancers said they had health insurance. But the 42% of uninsured freelancers may be making a big mistake.
The dangers of not having health insurance
Even if you’re a perfectly healthy person who rarely gets sick, you never know when an occasional illness or accident will land you in the emergency room. Without health insurance, your bill could total thousands of dollars.
Plus, if you have to pay the full cost, you never know when you might need a diagnostic test that could cost you thousands of dollars. So, in many cases, health insurance will cost more than it costs in the event of a sudden medical problem or injury.
How Freelancers Can Get Health Insurance
If you’re a married freelancer, your most cost-effective health insurance option may be to enroll in your spouse’s workplace health plan (if they’re available). Otherwise, you can buy plans from the health insurance marketplace established by the Affordable Care Act.
Now, you must follow the rules for getting coverage through marketplace plans. You can register during the open registration period from November 1st to December 15th each year. The process of signing up for coverage varies by state, and you may be eligible for subsidized health insurance, depending on your income (this option is usually available for low-income earners, but phase-out is available for middle-income earners).
That said, if you gained health insurance through work but lost your coverage (for example, by becoming a freelancer), you may be eligible for a special enrollment period to enroll in a marketplace plan. This means you don’t have to wait for the annual open enrollment period.
Whether you’re new to freelancing or have been doing it for years, it’s important to factor the cost of health insurance into your budget and make room for it. Not having insurance can be a costly mistake. And the last thing you want is to regret your decision to freelance because of a pile of medical bills.
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