6 Tips to Find Affordable Health Insurance When You Become Self-Employed

Many people dream of becoming self-employed, but aren't sure how they'll find affordable health insurance on their own. Laura covers six tips to find the best health coverage when you work for yourself or lose job-based insurance for any reason.

Laura Adams, MBA
8-minute read
Episode #468

Tip #6: Use short-term coverage as a last resort

If you miss the deadline to enroll in a qualified health plan, but don’t qualify for the special enrollment period, are you simply out of luck? Fortunately, no. You can purchase a short-term health plan to get some amount of coverage until the next enrollment comes around.

Problem is, short-term plans don’t have to meet ACA standards. That means they can charge more if you have a preexisting condition, put caps on benefits, or not cover basic services like prescriptions and preventive care.

Because short-term plans fall so short, the law doesn’t consider them real insurance.

Because short-term plans fall so short, the law doesn’t consider them real insurance. So even if you buy one, you’re still considered uninsured and have to pay the Obamacare penalty.

Having short-term coverage is certainly better than nothing after you lose job-based insurance, but should be replaced by a qualified health plan as soon as possible. That’s the best way to have the protection you need against the huge financial risk of medical costs.  

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View of Health Insurance image courtesy of Shutterstock


About the Author

Laura Adams, MBA

Laura Adams received an MBA from the University of Florida. She's an award-winning personal finance author, speaker, and consumer advocate who is a frequent, trusted source for the national media. Money-Smart Solopreneur: A Personal Finance System for Freelancers, Entrepreneurs, and Side-Hustlersbook is her newest title. Laura's previous book, Debt-Free Blueprint: How to Get Out of Debt and Build a Financial Life You Love, was an Amazon #1 New Release. Do you have a money question? Call the Money Girl listener line at 302-364-0308. Your question could be featured on the show.