The open enrollment period for health coverage is upon us, and it's crucial for self-employed individuals to take action.

• During open enrollment, the stakes are high for American freelancers, consultants, independent contractors, and other self-employed individuals.
• The upcoming weeks may be your last opportunity to purchase individual or family health insurance coverage in 2024.
• Signing up for benefits before Dec. 15 is crucial for most states, as the coverage begins on Jan. 1.

Open enrollment season can be a time of trepidation for the self-employed.

If you need to purchase individual or family coverage, the upcoming weeks are your last chance to do so for 2024, except for certain circumstances such as relocating, getting married, divorced, or having a child.

The best chance for most individuals to evaluate their options and sign up for a new health insurance plan is during the nationwide open enrollment period, according to Anthony Lopez, vice president of individual and family and small business plans at eHealth, an online marketplace for health insurance.

Self-employed individuals may find it challenging to choose health insurance without HR assistance. However, here are common questions and answers to help navigate open enrollment.

Healthcare.gov and other options for information

Self-employed individuals, including freelancers and consultants, can enroll in high-quality health coverage through the federal government or their state on the healthcare.gov website. They can also work with an insurance agent or a private online marketplace to help them navigate their options. To be considered self-employed, one must not have any employees working for them. If they have even one employee, they may be eligible to use the SHOP Marketplace for small businesses.

The deadlines you need to stay on top of

To avoid missing out on health care coverage that begins January 1, most states have set a deadline of December 15. Therefore, it is crucial to sign up for benefits before the deadline. Additionally, it is important to pay the first month's premium before the coverage starts. If you miss these deadlines, there will be no room for negotiation.

If you are already enrolled in a marketplace plan

Individuals who were previously enrolled in a plan can modify their coverage until Dec. 15 for a plan that starts in January. If no changes are made, they will be automatically reenrolled in their previous marketplace plan.

Qualifying for tax credits and other savings

Irish advised that many people believe they won't qualify for savings, but they should still explore their options. In fact, 91% of total marketplace enrollees received an advance premium tax credit in February 2023, which reduces their monthly health insurance payment, according to data from the Centers for Medicare & Medicaid Services, a federal agency within the U.S. Department of Health and Human Services.

It's recommended to check for potential savings annually, according to Irish.

What to consider in making coverage decisions

When selecting or renewing health insurance, it is important to consider the needs of family members and the coverage options and costs of different plans. Factors to consider include copays, prescription drug coverage, doctor coverage, and out-of-pocket maximums.

If you're a self-employed entrepreneur looking to expand your business in the upcoming year, you have the option to enroll in a small business plan at any time, according to Lopez. Unlike individual and family plans, small business group plans are not subject to the same open enrollment rules. This means that you can sign up for an individual plan today and then switch to a group plan in mid-2024 if you decide to hire a few employees and want to offer them health benefits.

How much health insurance costs the self-employed

The cost of health insurance varies based on the plan selected, the number of individuals covered, and available subsidies. On average, the total monthly premium before tax subsidies in February 2023 was $604.78. After tax subsidies, the average total monthly premium paid by consumers was $123.69, according to the Centers for Medicare & Medicaid Services.

Individuals who are self-employed may be eligible for a discount on deductibles, copayments, and coinsurance. To determine eligibility, fill out a marketplace application. However, enrolling in a "Silver" plan, one of four categories of marketplace plans, is necessary to receive the cost-sharing reduction.

Wading through policy options, working with an agent

You don't have to navigate the health insurance application process alone. Marketplaces offer trained and certified assisters to help you apply and enroll. Additionally, you can work with licensed agents or brokers who specialize in selling marketplace health plans in your state. These professionals can provide more detailed information about the plans they offer and ensure that you receive the best coverage at the most affordable price.

To receive a premium tax credit and other savings, you must enroll for a plan through a state or federal marketplace, either on your own or through an agent. While some agents may offer other plans that meet government requirements, these plans may not be available on government exchanges.

The risk and reward of high-deductible plans

Multiple plans are available on marketplaces, with varying coverage and cost. A popular choice among young entrepreneurs is a high-deductible health insurance plan, which offers lower premiums in exchange for higher deductibles. This plan may be suitable for healthy individuals who don't visit the doctor frequently. Additionally, a qualified high-deductible plan allows contributors to save money in a tax-advantaged account called a health savings account (HSA).

To determine if a high-deductible plan is suitable, individuals should consider factors such as their healthcare needs, financial capabilities, whether their doctors are in-network, and the out-of-pocket maximums. Additionally, it's crucial to ensure that you have the financial resources to cover a high-cost medical event if necessary. If a high-deductible plan aligns with your circumstances, you may then explore the option of an HSA.

It is recommended by Lopez that individuals should not delay reviewing their coverage options, which may include dental and vision insurance. The last week of open enrollment can be a busy time for licensed agents, so it is best to talk to an agent to get personal questions answered.