Health Insurance Basics for the Self Employed

Looking into health insurance, especially for those who are self employed, can be a daunting task. Without the help of company programs that pay part of your insurance, it can be a more expensive, and even frustrating to get health insurance. There are some basics to understand, however, before you buy.

Get on the net and do your research. There is a dearth of information available online that allows you to assess the different health insurance plans available. Some of the sites rate the plans to help you make a decision. Before choosing one, make sure you have researched it thoroughly. Beware of cheap plans ¡V they may have a much higher deductible or may not have your doctor on their list. Once you have all the facts then you can make an informed choice.

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. 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 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. A co-pay is the amount of money you pay up front. This usually ranges from $15 to $25. Another variation on the co-pay is to pay 20% of the bill until you meet your deductible, and then you pay nothing or a very small co- pay. Most plans specify a different co-pay for office visits than for emergency room visits and prescription drugs.

Deductible. This is the amount you pay from your own pocket. If you have a co-pay it does not count towards your deductible. Under a 20% plan, office visits count as part of your deductible. Health insurance is similar to auto insurance in that the higher your deductible, the lower your insurance 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.

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Vlad Ehrsam is the chief writer for, and editor of Full Info on Business, it's one of the webs most up to date Business sites, while you're there sign up for the free newsletter.
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