In the United States, health insurance is becoming an increasingly important factor in many professions. If you’re working for a company that offers little to no health insurance benefits, yet have important technical skills, you may want to reconsider your employment and consider going independent.

Our Getting Started section provides ample information on important points to consider when going independent, but there are a number of truths you need to know when considering your employment status and going for health insurance. This article lists several truths for you to consider when thinking about health insurance as in independent contractor.

Truth #1: Health insurance as a private individual is more expensive. You also face a number of risks; unlike company plans, you can be refused coverage or face premium increases for existing conditions.

Truth #2: You can deduct most to all of your medical expenses, deductibles, out of pocket expenses, as well as premiums. If you are incorporated, you can offer to pay 100% of your employees’ (your) premiums as well, and deduct this from your corporate earnings. See your accountant for details. It should be a brief conversation.

Truth #3: If you want guaranteed coverage, get a group plan for your company. Most insurers require a minimum of two employees. Group policy coverage is generally more expensive, but as an employee, you are guaranteed coverage.

Truth #4: Professional organizations or societies often propose “group” insurance plans or access to other independents looking to form a “group” in order to qualify for a reduced company plan rate.

Truth #5: Some contracting companies may offer you health insurance. Be sure to measure the length of your tenure with the consulting company versus the quality of the plan. If you accept this plan, you cannot deduct your premiums. If you lose your job, you will qualify for Cobra, at a much higher rate than to which you are unaccustomed.

Truth #6: Health insurance may be your greatest monthly expense in addition to your payroll. If it isn’t, it will be among your top 3 monthly expenses.

Truth #7: Health insurance is not something you can afford to do without, especially if you are supporting family members. Consider health insurance as a necessity, something that is as important as having clients.

Truth #8: When it comes to health insurance, you get what you pay for. If you want to pay a low premium, you can expect higher co-pays and certainly higher deductibles.

Truth #9: You can manage health care costs by taking a company plan and tailoring your plan to each employee. For example, you may opt to use a higher-deductible plan if you are young, in-shape, and don’t go to the doctor’s office frequently, while a co-worker with young children may want to use a lower-deductible plan with “friendlier” co-pay requirements if he or she often goes to the doctor.

As an independent contractor, it’s important to stay on top of your health and treat coverage as more than a safety net. It’s a vital necessity that shouldn’t be overlooked just for the sake of keeping extra cash in your bank account each pay period. It’s an investment in you and your employees. lives, as well as in your company!