Millions of Workers Don’t Have Self-Employed Health Insurance
Securing reliable, affordable self-employed health insurance is one of the most challenging aspects of going out on your own. It isn’t easy, and it isn’t cheap.
Maybe that’s why so many self-employed people end up without health insurance. Of the 27 million working people in the United States who are uninsured, 63 percent are either self-employed or work for a small business, according to the Employee Benefit Research Institute (EBRI).
Many Baby Boomers and Seniors are Self-Employed
Self-employment is an important career option for people in mid-life, and it is an option that many seniors and baby boomers choose.
In 2002, 5.6 million workers age 50 and above (16.4 percent of 50-plus workers in the U.S.) were self-employed, compared to 10.2 percent (13.8 million workers) for the workforce as a whole, according to Self-Employment and the 50+ Population, an AARP Public Policy Institute Issue Paper by RAND researchers Lynn A. Karoly and Julie Zissimopoulos.
Many People Over 50 Choose to be Self-Employed
In general, self-employment rates tend to rise with age. In 2002, for example, people age 50 and up were only 25 percent of the workforce, yet they accounted for 40 percent of all self-employed workers. While some of those 50-plus entrepreneurs had been self-employed through most or all of their careers, many others made the transition to self-employment in mid-life, often as part of their transition to retirement.
About one in three self-employed workers age 51 to 69 made the transition to self-employment at or after age 50. And that trend isn’t slowing down.
According to a Merrill Lynch survey, 13 percent of baby boomers (nearly 10 million Americans) plan to start their own businesses when they retire from their current jobs.
Be Your Own Boss Without Risking Your Health
If you’re thinking about becoming self-employed, or taking a job with a small company that doesn’t offer health insurance, you would be wise to begin looking into the various self-employed health insurance options that are available right now.
According to EBRI, the 13.4 million Americans under age 65 get their self-employed health insurance as follows:
- 2.6 million have individual policies
- 3.5 million are insured through their own business
- 3.3 million are covered by their spouse’s insurance or by some other policy
- 0.7 million are insured as part of a public program
- 3.5 million are uninsured
Self-Employed Health Insurance Options for Older Adults
After you turn 65, you may be eligible for Medicare benefits, even if you’re still working in your own business. Be advised, however, that you may need supplemental health insurance to cover what Medicare won’t.
Finding the right self-employed health insurance can be difficult, but it’s not impossible. There are new resources and plans that can ease the burden, help you escape the corporate rat race, and enable you to achieve your dream of being self-employed without putting your health at risk.
For tips on how to find the best self-employed health insurance for your budget, see How to Get Self-Employed Health Insurance.
