Paying for Health Care When Self-Employed

When you are self-employed, it is difficult to pay for health care. And, unfortunately, things probably aren’t going to be any easier once Congress is through with health “reform.” Our health care will still be more expensive than any other developed nation’s and we’ll still only have the 37th best health care in the world. One of the main problems is that none of the people who make the rules, pay the money to have the rules made as they like, or make money off of whipping up furor over an “evil socialist” public health care system, have no interest in having affordable health care for We the People.

As a result, you are pretty much stuck on your own. I know. I’ve been paying for group individual health care for years now as someone who is self-employed. And even though I get a tax break, it is still a hit to the wallet. Especially now that my premium is going up by $80 a month because my husband and I turned 30 in the last couple of months. It’s ridiculous that we don’t get any sort of credit or rate reduction due to our healthy habits and preventative care, but that’s life.

So, since my fantasy of having affordable universal health care will probably never come true (either through a Massachusetts-style system or through a single payer system), I am now considering the Health Savings Account. This can be a good move for many self-employed folks, since it allows them to pay lower premiums by getting a high deductible plan. Then you put money in the Health Savings Account, which has tax advantages and grows for your use. You can get the money out anytime you want, and it rolls over year to year — and it grows because it’s an investment.

So, this is a viable option for many who are looking for a way to pay for health care when self-employed. Because things are getting ridiculous.