Self Employed Health Insurance

Self employed health insurance is simply individual health insurance designed for self-employed people. You may purchase this type of plan directly from a health insurance company rather than through an employer intermediary.

As with all individual health insurance, you should consider a number factors when determining what type of plan to buy. If you are young and healthy, you may be better off buying a major medical insurance plan with a high deductible as opposed to a more comprehensive managed care plan or indemnity plan. If you need family health coverage or health coverage for children, this can affect your decision as well.

Your should also consider the financial benefits of purchasing self-employed health insurance. Though the cost of self-employed health insurance may be high, the potential tax benefits can make getting coverage much more affordable.

Personal Tax Deduction

You may only be allowed to deduct un-reimbursed medical expenses (premiums, deductibles, etc.) that exceed 7.5% of your adjusted gross income. For example, if your adjusted gross income is $50,000, you are permitted to begin deducting health care expenses once you have spent at least $3,750 (in one year). Anything beyond the $3,750 is tax deductible.

Business Tax Deduction

100% of your self employed health insurance premium could be deductible as a business expense if you are in a partnership or an S Corporation and meet the criteria. Check the laws in your state for specifics on the business tax deduction available to you.

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