We’re in the middle of an entrepreneurial revolution. That’s right, more and more people are leaving their 9-5 jobs to start their own businesses. One of the most popular options today is freelancing. A startling 36% of the of the U.S. workforce freelanced in 2017, and this number is only on the rise.
While freelancing and owning your own small business gives you freedom to set your own hours and be your own boss, it’s not without its challenges. One of the biggest challenges keeping many people from leaving their day jobs behind is health insurance. The majority of Americans today get health insurance through their employers, and striking it out on your own can be scary.
There’s so much confusion about the state of health insurance in the United States that many people are left downright intimidated. If you’re a small business with only one employee, you have more options than you think. You need the right health insurance to protect yourself and your business, so here are the top 3 options for small businesses that only have one employee.
1. Health Insurance Marketplace
The first place to look for health insurance if you’re a solo entrepreneur like a freelancer or a sole proprietor is the Health Insurance Marketplace. This is where you’ll find health insurance for your specific location and situation.
If you’re an individual without any dependents, this might be more affordable than you think. When looking at plans, consider what healthcare you’ve used in the past and whether you need regular treatment or prescription medications. Picking the best plan might be as simple as just clicking around on your local marketplace.
2. Small Business Health Options Program (SHOP)
The Small Business Health Options Program (SHOP) is part of the Affordable Care Act, and it might be something you can consider as a business with only one employee. Each state has their own definition on what qualifies as a small business, so you’ll need to check your eligibility. Many businesses with a single employee can choose a plan through the SHOP marketplace.
Through the SHOP program, you can choose different levels of plans, from Bronze to Platinum. If you have multiple employees, you might qualify for a tax credit. However, as a small business with only one employee, this is an effective way to find coverage depending on your state.
3. Health Savings Account (HSA)
An alternative to “traditional” healthcare is to open a Health Savings Account (HSA). With an HSA, you can save for your medical expenses while also reducing your taxable income. If you have a high-deductible health insurance plan, you qualify for an HSA.
With an HSA, you create a separate savings account for health expenses. You can contribute as much or as little as you want, and your HSA balance tax-free. Because you can put this money towards any type of medical expense, this is a highly flexible option that’s ideal for small businesses with only one employee.
How to Protect Your Health as a Small Business
As a small business with only one employee, you have to prioritize your health. If your health is at risk, so is your business. It’s essential to find the best health insurance for your needs so you can have that extra peace of mind.
If you’re considering health insurance, look into these options above. There’s so much out there designed for your situation that you have no excuse to skip coverage. Is your health protected? If not, take the right steps today to secure coverage.