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Health Insurance for the Self Employed 

Freedom Means Responsibility - Self Employed Health Insurance

The freedom and autonomy inherent in being self employed is soured when consideration is paid to the practical obligations an individual who is self employed has to their business, and the ramifications of incidents such as unexpected illness and the subsequent need for urgent medical attention.

Small Group Health Insurance California

One of the pressing issues for government to address in later years has been that of rising medical expense in the United States. Traditionally, many employers have offered health insurance as part of an incentive package for employees but this value is not included in an individual's taxable income. Effectively a form of over-insurance, this results in tax receipts to government being reduced and contributes to the increase in public medical expense.

However for the self employed, the situation is far dire. While companies have no issue with claiming their entire health insurance expense against their taxable income, the self employed have at one stage been marginalized. It appears that the self employed individual has not had the ability to claim such tax concessions as one who is part of an employer based group insurance policy, and until recently has only been able to claim a percentage of the cost of health insurance. Now, 100 % of the self employed individual's health insurance expenses are able to be deducted from taxable income. 

No Incentive for Self Employment

Still, Californian self employed health insurance can cost up to four times as much as large corporations pay for their employees through group plans, and for this reason 33% of self employed individuals remain uninsured. In this case, if the self employed person is able to shelter under the employment based health insurance of a spouse or partner, this would be the most effective course of action considering the current circumstances.

However it has been suggested that a universal health system where consumers are provided with a voucher of fixed amount with which to shop in the market place for the best insurance, will mean an additional tax imposed on employers and also the self employed, but will allow the self employed to receive insurance cover at a fraction of the cost they are currently burdened by.

Savings such as these are much needed by the self employed and smaller businesses, but are quite able to be eroded at the instance of minimum wage increases and mandates in relation to the subject matter of health insurance coverage by legislators, which serve only to increase the cost of health insurance and provide a constant source of hardship for the proprietor of a small business to endure.

Self Employed Medical Insurance

In the past a number of self employed individuals and small business operators, were the subject of fraudulent insurance practices involving unlicensed and disreputable insurance dealings.

Groups such as the Californian Association of Realtors insured through Blue Shield failed to comply with the terms of the agreement that required the association to enroll a minimum of 75% of its members in the scheme, and so stood to lose the coverage for the entire group.

The Federal government has legislated to provide stricter anti fraud conditions for insurers to follow, but have allowed states the residual power to legislate freely in this respect, particularly in order to allow self employed individuals to align themselves with a cooperative or group and receive the benefits of lower cost group health insurance. 

 

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