Types of Health Insurance Plans for a Freelancer

Independent contractors or freelancers need health insurance for their home business. There are three different kinds of health insurances that freelancers or independent contractors might be able to afford and they are (COBRA) Consolidated Ominbus Budget Reconciliation Act of 1985, (HSA) Health Savings Account, (HMO) Health Maintenance Organization, (PPO) Preferred Provider Organization, and (POS) Point-or-Service plan.

Introduction

Shopping for health insurance plans for your writing career as a home business takes time. Below are some basic terms that will help a person understand health insurance and what they mean.

· Co-pay is a fixed amount a person pays in time of service.

· Deductible is a flat amount that you pay before the insurance will give you any benefits.

· Premium is a payment that is a percentage of the bill that you pay the insurance in payments.

Individual Plans

There are health insurance plans that a freelancer or independent contractor might be able obtain even if it is for a short or permanent arrangement.

COBRA is generally provided by your previous employer and still can be useful for individuals and families that have health problems. It can be costly but temporary for about 18 months from termination of your previous employer. It is a go short-term health plan until you can find a long-term health care plan.

HSA is a personal account that allows you to save money for health costs. It isn’t exactly insurance, but it can help you pay the medical bills. It is tax-free.

HMO is affordable health insurance without a deductible and coves all medical services. However, you can choose a primary care physician from within there own network or pick one of you own, but you are responsible for the medical care costs. You do not have to pay a co-pay or deductible, but there is a premium with HMO. Two other health care plans within HMO are (PPO) Preferred Provider Organization and (POS) Point-of-Service plan.

PPO is an adjustable plan that will let people make appointments with a physician and still get a hold of insurance. There is a co-pay and deductible.

POS plan is a combination of HMO and PPO and anyone can choose a primary care physician with in network. There is a co-pay at the time of service but there is no a deductible.

These types of health insurance plans for a freelancer are obtainable for individual contractors and freelances for their home business. There are others but these three are the most insurance that is easily offered.