Why Traditional Health Insurance Doesn’t Work If You’re Self-Employed or Freelance
More Americans are self-employed than ever before, accounting for over 10% of the US workforce. While innovative entrepreneurship is good news for the economy, freelancers and self-employed Americans face a major challenge in navigating their health insurance. The traditional health insurance system isn’t built with freelancers, gig workers, and the self-employed.
While the world of work has evolved to embrace entrepreneurship and the digital economy, traditional health insurance still focuses on employer-based coverage. Over 16 million self-employed Americans struggle to get the insurance coverage they need.
At CrowdCare, our crowdfunded community-based solution empowers self-employed Americans to experience real healthcare freedom. We’re sharing 4 reasons why traditional health insurance doesn’t work for freelancers and the self-employed – and how CrowdCare can bridge the gap.
1. No Employer Contribution
The US health insurance system assumes that your employer covers 70-80% of your premiums. If you’re self-employed, there are no employer contributions, leaving you to pay the full cost.
Research shows that the average cost of an employer-provided family health insurance plan is over $22,000 per year. It’s a sky-high figure most self-employed people can’t meet. They don’t have the group buying power of an employer and may struggle to budget for health insurance if their income fluctuates.
2. No Access to Employer Networks
Navigating health insurance isn’t easy. The industry jargon can feel overwhelming, and without a HR department for support, self-employed Americans often find themselves in the dark. Choosing the wrong tier for health insurance could be costly, both for your premiums and out-of-pocket costs.
Under the Affordable Care Act, the self-employed can access insurance plans directly from insurers or the ACA marketplace. Without the buying power of an employer, there are typically higher premiums and limited insurance plans available, making it difficult to find healthcare coverage that aligns with your circumstances.
3. Impact of Income Volatility
Most self-employed Americans access health insurance through the ACA exchange, but this system isn’t built with them in mind. It requires you to provide your estimated annual income, which can be a challenge for freelancers who work part-time or whose earnings fluctuate throughout the year.
These challenges are even greater for those who work in industries that see higher seasonal demand during Q4, as higher earnings in this period could put them above the ACA’s subsidy threshold.
If your income changes and you earn more, tax season can bite with potentially major subsidy repayments needing to be made. However, a decline in your income from the estimated amount won’t provide retroactive adjustments to your insurance premiums.
4. ACA Exchange’s Annual Enrollment Window
Thousands of Americans start freelancing or become self-employed every month, but the ACA exchange won’t provide immediate access to its health insurance marketplace. There’s a narrow enrollment window from November to December for enrolling, renewing, or changing your health insurance plan.
While there are exceptions for qualifying life events, such as a change in residence or household size, most self-employed people are locked out of enrolling for health insurance for 10 months of the year.
Revolutionize Your Healthcare with CrowdCare’s Community-Based Alternative
Traditional health insurance isn’t set up for entrepreneurs and freelancers, but CrowdCare’s crowdfunding is. Subscribing to our CrowdCare community can save you thousands of dollars every year with no high deductibles and personalized support without network restrictions. It’s a health insurance alternative designed to make coverage affordable for entrepreneurs.
Choose from an individual membership, a 55+ membership, or a family membership and wave goodbye to the anxiety of high premiums and confusing insurance plans. Ready to join the healthcare revolution? Join CrowdCare today and help us replace traditional insurance with a community-based solution.