5 Ways Solopreneurs Can Save Time and Money on Healthcare

The cost of healthcare continues to rise for all Americans. But affording it can be especially challenging when you're self-employed. To make a health plan more affordable, you must get the most from your benefits, be strategic, and reduce medical costs wherever possible. 

Here are five ways freelancers can save time and money without sacrificing quality healthcare for themselves and their families.

1. Determine if you qualify for a healthcare subsidy.

As a solopreneur, getting coverage through a federal or state exchange, established by the Affordable Care Act (ACA), is one option. Depending on your income and family size, you may be eligible for a healthcare subsidy that reduces your monthly premium. 

In most states, open enrollment for ACA plans typically runs from November 1 to January 15. Outside that window, you can sign up or change coverage at any time if you experience a life event that qualifies for a special enrollment period (SEP), such as 

having a child, getting married, or relocating to another state.

2. Join the Solo Health Collective.

If you're a sole proprietor with a free EIN (employer identification number) and pass a quick health questionnaire, Solo Health Collective may be a more affordable option. Since it isn't ACA insurance, you can enroll anytime. Your business establishes the plan, which gets backed by an A+-rated, globally recognized reinsurer.

Solo offers three plans with deductibles of $2,500, $5,000, or $10,000. Unlike ACA plans, Solo's deductibles are the same as your out-of-pocket maximums. That means once you reach your deductible, claims for covered services are typically paid 100%. 

Another significant Solo benefit is having access to one of the largest nationwide PPO networks, including emergencies abroad. Like ACA plans, Solo covers preventative services before and after you meet your deductible and has no annual or lifetime limits on benefits. 

Solo is designed for busy solopreneurs who need flexibility, affordability, and responsive customer service. Members get access to Touchcare, a third-party health concierge, for help finding providers, scheduling appointments, resolving billing issues, and more, saving your valuable time.

In addition, you can choose plans eligible for health savings accounts (HSAs), allowing you to save more. Keep reading to learn more about HSA benefits for freelancers.

3. Contribute to a health savings account (HSA).

If you enroll in an HSA-qualified health plan, you can contribute to an HSA and enjoy the following tax advantages:

• You make tax-deductible contributions that reduce your taxable income.
• You get tax-free account earnings and investment growth.
• You make tax-free withdrawals to spend on various qualified healthcare expenses.

For 2024, you can contribute up to $4,150 when you have an individual health plan or $8,300 with a family plan. For 2025, the limits will increase to $4,300 or $8,550. After age 55, you can contribute an additional $1,000 annually. 

You can use HSA funds to pay a long list of healthcare costs, even if your insurance doesn't cover them. That might include dental care, prescription eyeglasses, or hearing aids.  

If you spend HSA funds on qualified medical expenses, they never get taxed. Consider this: if your average income tax rate is 25%, using your HSA gives you a 25% discount on all out-of-pocket medical expenses. These terrific benefits cut your tax bill and maximize your healthcare buying power!

4. Claim medical tax deductions.

For 2024, the medical deduction applies to allowable expenses exceeding 7.5% of your adjusted gross income when you itemize deductions on your tax return. They include healthcare paid for yourself, your spouse, and dependents, including health plan costs.

Some examples of healthcare expenses you can deduct include:

• Acupuncture.
• Chiropractic.
• Contact lenses. 
• Mental health treatment.
• Transportation to medical care.

5. Maximize your health plan benefits annually.

Health plan benefits and deductibles get tied to an annual schedule. That means you must pay attention to the calendar to maximize them. 

For instance, if you have a $5,000 deductible, you must pay the first $5,000 of covered expenses annually. If you reach your health insurance deductible, your insurance covers additional costs through the end of the year. 

Let's say you have healthcare expenses that exceed your deductible by September 1 and need more covered medical services. You should try to get them before the end of the year. If you wait until the following year, your deductible resets on January 1, and you'll have out-of-pocket costs until you reach your deductible for that year. 

Remember that the best way to cut your healthcare is to stay as healthy as possible by managing your weight, eating well, exercising regularly, and getting preventive checkups. You'll likely feel your best and pay less for medical care for the rest of your life.