The ins and outs of Health Insurance when You're 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.

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. 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. 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. 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 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.

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Vlad Ehrsam is the chief writer for, and editor of Full Info on Business, visit there today for the latest Business advice, and while you're there sign up for the free newsletter.
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