The Affordable Care Act and Self Employment

Barack Obama signing the Patient Protection and Affordable Care Act at the White House (Photo credit: Wikipedia)

Being self-employed comes with many great benefits, including the fact that you get to set your own hours and to work as much or as little as you want and need. However, not EVERYTHING about self-employment is easy. To start with, there’s the fact that you have to secure your own health insurance and understand how the Affordable Care Act affects you.

Fortunately, though, understanding the Affordable Care Act and general self-employment insurance information isn’t all that hard. Before you dive in to all that, though, make sure that you actually meet the IRS definition of “self-employed.” In order to do that, you must either run a business as a sole proprietor, be an independent contractor/freelancer, or otherwise generate income without employees other than yourself. You may also qualify as self-employed if you are part of a business/trade partnership.

Once you’re sure that you qualify as self-employed,then you have some decisions to make related to your health insurance coverage. If you don’t have insurance, you are, under the Affordable Care Act, legally bound to, so you’ll need to get it. To get coverage or to change it, you can visit the Health Insurance Marketplace during open enrollment and find the best insurance to meet your needs.

Knowing which type of insurance to select, how to get all the discounts, deductions, and exemptions you are entitled to, and making sure you pick all the right coverage can be a bit confusing, especially with so many options- all at such vastly different prices- available. For this reason, it can be smart to visit with a financial adviser to help you choose the right insurance to meet your needs and to ensure that you don’t miss out on any possible savings. Getting insured can be tricky, but it will be worth it in the end when you’re fully covered and protected!