‘Having a small break from a soul-sucking job’: I need affordable health insurance for my spouse and me. How can we find coverage without breaking the bank?

Hi Money Minder,

I’m kind of worried I might get laid off soon and want to have a plan ready just in case. Luckily, I’ve got a few side hustles going on, so a break from my current job might actually be nice for a change.

But, there’s one thing that’s got me stumped: health insurance. For all you self-employed folks and small business peeps out there, what do you do for health insurance that doesn’t cost a fortune each month and doesn’t come with a $20,000 deductible? (That’s like, “you only get help after you’ve paid an additional $20,000” kind of deal).

I need coverage for both me (28F, female) and my spouse (30M, male). From what I understand, even if our income drops, we probably won’t qualify for any help through the Health Insurance Marketplace (like discounts or tax credits).

Thanks in advance for any hacks or tips!

Best,
Prepping for Plan B

Response from THE MONEY MINDER:

How can I assist you today with your financial inquiries?

Hello There,

Sorry to hear that you may be facing a potential layoff from your current position. It’s great to know that you have multiple streams of self-employment income to fall back on and may even take the opportunity for a much-needed break from a demanding job. However, health insurance is indeed a critical factor that needs careful consideration in this transition.

For self-employed individuals like yourself and your spouse, there are several practical approaches to securing affordable health insurance. First, consider exploring options through the Health Insurance Marketplace. Even if you believe you won’t qualify for subsidies or credits, it’s worth reviewing the available plans. You might find options with manageable premiums and deductibles that suit your needs better than expected.

Another avenue is to look into a high-deductible health plan (HDHP) combined with a Health Savings Account (HSA). While HDHPs generally have higher deductibles, they often come with lower monthly premiums. The HSA can be a beneficial tool as it allows you to set aside pre-tax dollars to cover future medical expenses, potentially offsetting some of the costs associated with a high deductible.

You may also want to investigate health insurance plans available through professional associations or trade groups related to your field of self-employment. Sometimes these organizations negotiate group rates that can provide more affordable options than those found on the open market.

Additionally, it may be wise to seek advice from a health insurance broker. A broker can help you navigate different plans and providers, ensuring you find a policy tailored to your unique situation.

Lastly, given the complexities and ever-changing landscape of health insurance, it’s beneficial to stay informed about any legislative changes that might affect subsidies and coverage options. Staying proactive and educated will help you make the most informed decision possible.

I hope these suggestions provide you with practical pathways to finding an affordable health insurance solution for you and your spouse.

Best of luck navigating this transition.

THE MONEY MINDER