There are currently 23 million self-employed entrepreneurs in United States and that number continues to rise, especially here in Washington. These innovative entrepreneurs reflect a diverse array of professions and businesses that are helping to drive our economy – from consultants and IT specialists to painters and roofers.
As the number of self-employed individuals continues to grow, thanks to technology that allows more geographic flexibility and baby boomers looking to open their own firms, one key concern for entrepreneurs looking to go into business for themselves has historically remained unaddressed: health care. Under the Affordable Care Act, self-employed business owners now have more options than ever to find affordable health coverage and it’s important to know the facts about the choices available as you start, or continue to operate, your own business.
First, beginning in January 2014, self-employed individuals and other consumers will be able to purchase their insurance through new Health Insurance Marketplaces (also referred to as Exchanges).
All qualified health insurance plans offered in these new insurance Marketplaces will cover a core package of “essential health benefits” ranging from preventive and wellness services to maternity care and mental health services. The plans will vary according to the percentage of costs the health plan covers. Additionally, issuers may offer catastrophic-only coverage, which includes free prevention and several primary care visits, primarily to young adults under 30 years of age. Enrollment begins Oct. 1 and the Marketplaces open in January 2014.
Self-employed individuals may also qualify to get lower costs on monthly premiums when they purchase private health coverage in the Marketplace. When you fill out a Marketplace application, you will learn if you qualify for these lower costs. Depending on income, consumers and the self-employed may also qualify for lower out-of-pocket costs, so they won’t have to pay as much for deductibles, copayments and coinsurance.
It’s also important to know that, beginning in 2014, the Individual Shared Responsibility provisions of the Affordable Care Act call for each individual to have: basic health insurance coverage (known as minimum essential coverage) for each month; qualify for an exemption; or, make an Individual Shared Responsibility payment when filing a federal income tax return starting in 2015. However, if coverage is unaffordable, if you spend less than three consecutive months without coverage, or if you qualify for an exemption for other reasons (including hardship and religious beliefs), you will not be required to make a payment. For many self-employed entrepreneurs, health coverage is a key factor in deciding whether to venture out on their own and transform an idea into a business. By providing access to quality, affordable health insurance, entrepreneurs can focus on helping the economy grow and thrive. And in a country built on the spirit of entrepreneurship, this is good news for us all. To learn more, visit www.sba.gov/healthcare or call the Seattle District Office at 206-553-7310.
