In order to make a smart health insurance buying decision it helps to understand the value of health insurance and why you need it. It may sound obvious, but many people don’t properly understand the basic purpose of health insurance or how it works. In brief, health insurance helps protect self-employed persons and small business owners in the following ways:
Personal Medical Costs
Hiring and Retaining
It entitles you to discounted rates for medical care: Insurance companies negotiate rates with health care providers. Without coverage, the fee charged for a regular office visit can be much higher, possibly twice as high in some cases.
It shields you from unexpected medical costs: Even if your health plan requires you to pay certain costs out of pocket, being covered can help save you from bankruptcy in case of injury or hospitalization.
It can protect you from ACA tax penalties: So long as you maintain qualifying coverage without an unpermitted gap (generally a single gap of up to two months in a year is permitted), you should not face an Obamacare tax penalty.
It improves your access to quality care: As a member of a health insurance plan, you have access to a network of health care providers.
It provides you with critical care: When you’re insured you have better access to care for medical emergencies and chronic conditions.
It encourages a healthier lifestyle: You may be more likely to take advantage of regular checkups and preventive care if you know it won’t cost you an arm and a leg.
It shields your business from personal medical costs: As a self-employed person or small business owner, unexpected personal medical expenses can cripple your ability to run your business. By limiting your personal liability for medical costs, health insurance can help keep your business afloat.
It can help you hire and retain the best workers: Employer-sponsored group health insurance coverage is a valuable enticement in a total compensation package.