The ins and outs of Health Insurance when You're Self Employed - By: Vlad Ehrsam, Posted on: 2006-11-16

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.

Like where to find health insurance. Try the Internet for starters, it'll give you a basis for comparison of various types of plans available, and even rates, on some sites. Low-rate plans may look attractive at first sight, but not so good when take a closer look. They could demand more in deductibles, or exclude your personal doctor from their panel. So take your time to assess the plans and what they offer before you choose a health plan, and before you sin on the dotted line.

When looking for health insurance for the self employed, you will likely come across a few phrases quite a few times. They let you know about the benefits of the plan, and can help you make your decision. But first you have to understand what the terms mean.

HMO. You will hear this phrase quite frequently. HMO is a managed care plan, often costing less than a PPO (see following paragraph) but that has more exclusions. In addition, it carries a low rating. Most HMOs stipulate that you have a primary care provider who is responsible for referring you to specialists if necessary.

PPO. This plan gives you a wider range of choices within a specified network. You can consult any provider listed in the network (most companies have an extensive list). This comes in handy when you are traveling and need to consult a doctor. You may consult a provider not listed on the network but for this, you will be required to pay extra up front. An EPO works along the same lines except that there is no cover outside the network (EPOs are not available to self employed persons).

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.

The term deductible refers to medical expenses you have to meet from your own resources. Your co-pays do not count as deductibles, but on a 20% option, office consultations do. And like insurance on your vehicles, a big deductible attracts smaller premium amounts.

Once you have identified your needs, look at the various scopes of coverage on offer. For example, is maternity, chiropractic visits or mental health care covered? Do the benefits of the plan adequately cater to your needs? In the end you may not find the perfect health plan, but you can come pretty close.

Free Article brought to YOU by ArticlesOn.com, where you'll find Articles On Everything! Visit http://articleson.com to get more free content.

Vlad Ehrsam is the chief writer for, and editor of Full Info on Business, visit there today for the latest Business advice, and their free newsletter is well worth signing up for too.
You can get a unique content version of this article.

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated

Excellent Hosting Service