One of the main worries people have about being self-employed is the cost of obtaining private health insurance. I have my individual health insurance policy with and my monthly cost is cheap. This is for a temporary policy with a high deductible though so it can’t be compared to a typical group health insurance policy. My health insurance is to keep a catastrophic health event from bankrupting me rather than providing me with access to routine health care. I also save a little money on my health insurance by being an affiliate for eHealthInsurance.
A better comparison of my policy is to other individual health policies. According to the ‘Cost & Benefits of Individual and Family Health Insurance Plans’ report the average premium paid for individual health insurance coverage in the United States in 2011 was $2,196 per year ($183 per month); families paid an average annual premium of $4,968 ($414 per month). The report also found that the average deductible for individually-purchased health insurance plans in 2011 was $2,935 for individuals and $3,879 for families.
My current health insurance cost is under $50 a month with a $5,000 dollar deductible. That is for a temporary policy though, if I had a regular policy I’d be paying about $80 a month for health insurance with a $5,000 deductible or about $100 a month for insurance with a $2500 deductible. Either one is still quite a bit less than the report shows for the average. It looks like I can upgrade my health insurance once my temporary policy is done and still have health insurance that is quite reasonable in cost. This for a 44 year-old, overweight male if you are younger and thinner you should get a better rate.
The point is that private health insurance doesn’t cost as much as many people are afraid it costs. If you’re considering self-employment or need your own health insurance policy for any reason I encourage you to check out the eHealthInsurance site. It is easy to get a quote and determine how much health insurance would cost you.