16.8 million U.S. workers are self-employed, often left piecing together their own health insurance coverage
As Labor Day approaches, healthinsurance.org offers tips to growing number of solopreneurs and freelancers about how to get health, dental and vision benefits
Minneapolis, MN, Aug. 19, 2024 (GLOBE NEWSWIRE) — A growing number of U.S. workers are self-employed and lack some of the traditional benefits that often come with full-time salaried work. In advance of Labor Day, healthinsurance.org explains how self-employed workers can assemble a benefits package for health, dental and vision coverage when they don’t have an offer of coverage from an employer.
“Many people have access to employer-sponsored coverage, where the employer has taken on the task — and many of the costs — of putting together a benefits package,” said Louise Norris, a health policy analyst for healthinsurance.org. “But when you’re on your own as a gig worker or a contractor, the responsibility and costs of creating a benefits package often fall to you.”
More than 16.8 million people — about 10% of the U.S. workforce — were self-employed as of July, according to the Bureau of Labor Statistics. Fortunately, there are coverage options for the self-employed that aren’t tied to an employer, said Norris.
Find the right health insurance
Here are some ways for gig workers, freelancers and the self-employed to find health insurance coverage:
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ACA Marketplace – Affordable Care Act-compliant health insurance plans are available on the Marketplace each year during the open enrollment period, which runs from Nov. 1 through Jan. 15 in most states. Many people qualify for an income-based premium tax credit through the Marketplace that brings the average premium price for enrollees to $111/month. ACA-compliant plans can also be purchased outside the Marketplace during open enrollment, but premium tax credits are not available for plans purchased outside the Marketplace.
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Spouse – Almost all employer-sponsored plans offer spousal coverage during the open enrollment period set by the employer. Individuals who have lost coverage through their own employer may qualify for a 30-day special enrollment period with their spouse’s employer.
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Membership organization – Some professional associations and membership organizations offer health benefits or help facilitate enrollment. Keep in mind that not all of these plans offer the same guarantees and benefits as ACA-compliant plans.
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COBRA – Depending on the circumstances, it’s possible to extend existing employer-sponsored health insurance coverage for up to 18 or 36 months through COBRA by paying the entire cost of the group coverage, plus an administrative fee of up to 2%.
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