Self Employed Insurance – Understanding Basic Plans

Self employed insurance is something many self employed individuals tend to forget about. Many people would love to be self employed. The thought of being self employed evokes images of freedom. The ability to be your own boss and set your own hours is very appealing to many. With the advent of the Internet, the ability to become self employed has increased significantly. As of 2007, there are approximately 10.5 million self employed people in the US. But the down falls of being self employed also means you do not have the benefits of a traditional job.

Choosing self-employment insurance can be a daunting task to say the least. There are so many options and so many different circumstances to deal with. Insurance companies like Blue Cross and Blue Shield have comparable pricing plans and options specific to your area. But before you even choose a self employed insurance plan, you must first understand the different types of plans out there. This will give you a better way of comparing rates when talking to the different insurance companies and will allow you to compare apples to apples.

The typical plans available for self employed insurance is the same as those in a traditional job. First you have to be aware that they, the insurance companies, like to use acronyms. HMO stands for Health Maintenance Organization. This is a health care system that has guidelines for which the physicians have to operate under. HMO costs are generally less then other plans with the trade off of limited range of treatments available. PPO is a Preferred Provider Organization, which has a list of physicians that have agreed to see the patients covered under their insurance at a discounted as an incentive to get people to participate within their network. Unlike HMO, PPO’s allow patients to see physicians outside of their network as well. The simplest plan is called the POS or Point of Service. This plan allows the insured to choose a physician that accepts your insurance. A lot of times these physicians are called in network physicians. This plan attempts to combine the freedom of a PPO with the lower cost of an HMO.

When calling the different agencies about self employment insurance, one should price out the different plans and options for their specific area. Self employed insurance doesn’t have to be ignored with the thoughts that it’s too expensive or that it doesn’t apply to someone who is self employed. Finding a reputable health insurance agent who can go through your different options in detail will help you understand exactly what you are buying. Interview different agents and compare the price and plans for their self employed insurance. The more educated you are in what is available, the more comfortable you will feel about what you are paying for.