Most companies do not offer independent contractors health insurance. There are several reasons why they don't, however the main reason is simply they are not obligated to do so. With this being the case, the onus falls on the independent contractor themselves to make sure they are covered.
Independent Contractors and Insurance
When it comes to insurance, independent contractors are not known for readily investing in policies. This is not due to indifference however. When you are an independent worker there is no guarantee of when the next job will be. This also means that there is not a guarantee of when the next paycheck will arrive. These unsure circumstances make it hard to commit to a regular payment. Even though it is understandable, avoiding buying a policy isn't the best option either. This is especially important to consider when it comes to health insurance.
The Importance of Health Insurance
As an independent worker, you may actually need health insurance more than other workers. After all you are endlessly on the move, looking for the next job, and hustling to get the next assignment complete. This in turn takes a toll on your body. As enough time passes, your health at some point will need some attention. When this happens, purchased health insurance coverage could be there to aid you.
Independent Contractor Options
Cost is one of the main reasons why independent workers do not commit to a health insurance policy. There are some cost-effective alternatives available. Under a Preferred Provider Organization policy (PPO) or a Health Maintenance Organization policy (HMO), you will receive discounts. You will only be required to pay a fixed monthly fee for service. However, under this type of plan you will be obligated to go to specific hospitals, clinics and doctors. Another way that contract workers can save on health insurance is signing up on their spouse’s policy. As group health insurance is cheaper than independent worker insurance, it makes sense to that option if available.
Another option is to invest in a Health Service Account. This is a plan where you save pre-tax dollars for the use of paying off medical expenses. You can also look into the many groups that you are affiliated with. Whether professional organizations, fraternities or sororities, you may be entitled to group coverage with them.
Lastly, do not be afraid to shop around. Remember every insurance company offers something different. There is no set price when it comes to insurance, so get out there to see what is available and what suits you best.
Health insurance is a must, no matter how you opt to work. For further information of how you can invest in an affordable policy which suits your needs as an independent contractor, or for a San Francisco health insurance quote call us today at (415) 512-2100.