If you’re self-employed, there are several things you need to take care of yourself. One of such things is health insurance. Unlike people who work for a company or own small businesses and employ staff, the options available to you may be a little different.
Qualifying life events are an important factor when it comes to buying health insurance or changing the type of policy or cover you have. Typically, the period you can buy a new health insurance policy or amend your existing one is November 1st to December 15th, giving you a six-week window within which you need to submit your application.
You can buy health insurance or change your cover if you meet the requirements of a qualifying life event. So, what is a qualifying life event, and how does it impact you as a self-employed person? In a nutshell, qualifying life events are significant changes in your life that will necessitate a change in your health insurance policy.
Qualifying Life Events
If a change in your life is considered a qualifying life event, you typically have 60 days before and after the event to change your policy or buy health insurance. This period is called SEP or special enrollment period. As a self-employed person, it will be helpful to shop around for health insurance quotes or contact your insurance company to apply for changes to your existing policy.
Before you contact your insurance broker or apply for a policy during the special enrollment period, make sure that you’re eligible and that a change in your life is considered a qualifying life event. Qualifying life events can be categorized into three main types:
1. Loss of Health Coverage
There are several reasons you may lose your health coverage, allowing you to buy health insurance during a special enrollment period. Common reasons include:
- Lost coverage that you had through a family member. Self-employed people under 26 are often covered under their parents’ health insurance policy. But once they turn 26, they are no longer allowed to be on their parents’ plan. Other reasons you may lose your insurance is if the family member whose plan you were on dies or you were on your spouse’s plan and then divorced.
- You’re no longer eligible for Medicaid, Medicare, or CHIP. Medicaid, Medicare, and CHIP are government-funded health insurance plans designed to assist people from disadvantaged communities with access to medical care. When you earn above a certain amount, you no longer qualify to be on these plans and will therefore need to buy private health insurance.
- Lost coverage through your job. When you switch from working for a company to working for yourself, you immediately lose your company-sponsored health insurance and will need to buy your own coverage.
2. Changes in Your Household
When there are changes to your family, you’ll need to update your health insurance to align with these changes. Changes to your household include getting married, going through a divorce, having a baby, or adopting a child. Also, if someone in your family who was on your health insurance plan dies, that’s considered a change in your household.
3. Changes in Your Location or Residence
The kinds of health insurance plans and their prices differ in each state. So, if you move, you are eligible to change your health insurance policy. This includes moving from one state to another, moving to the US from another country, moving to different locations as a seasonal worker, and moving to another state to study.
References
- Blog.healthsherpa: Health Insurance When You’re Self-Employed
- Bamboohr: Qualifying Life Event
- Peoplekeep: What is a Qualifying Life Event?
