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California Self Employed Health Insurance

Self employed residents of California looking for health insurance have options, options, options. Whether you are a sole proprietor or the owner or a multi-million dollar company with hundreds of employees there are many California health insurance options for you to research.

The route that you decide to take depends largely on the goals that you have for your business. For instance, if you are a small one-man shop and you (and your dependents or family) are healthy as can be then most likely an individualCalifornia health insurance plan makes sense for you. Why an individual CA health policy rather than a small business health policy? Generally speaking, an individual policy will be much cheaper than a similar group health insurance policy because there are much more stringent health criteria that must be met when it comes the individual underwriting side of things versus the group underwriting (think of it kind of like: on the individual side the rates are much cheaper because the insurance company gets to pick and choose who they will extend coverage to based on their health history while on the group side they have to take everyone regardless of their medical history).

Of course, if you are a small one to two man operation but plan on aggressively expanding your business very soon then maybe there are a few other things to consider rather than just cost in purchasing a California individual health insurance policy. The two most common approaches for California small business owners in this situation is to either set up a medical reimbursement type plan where you allocate a set amount to each employee/worker being careful not to discriminate (this then allows the employee/worker to purchase their own individual coverage using the set dollar amount provided) or to set up a CA small business (group) health plan.

On a side note, be sure and seek the advice of a qualified tax professional that is familiar in assisting self employed business owners in California. As you long as you have some net schedule C income then you will be able to deduct 100% of your health insurance premiums paid (for you – and your whole family if applicable) all the way up to your net Schedule C income minus 1/2 of your self employed taxes paid. From a tax standpoint this is much better than the deduction that all taxpayers (whether self employed or not) get if they itemize. If a non self employed person itemizes (their schedule A deduction is greater than their standard deduction) than they are able to deduct their health insurance premiums as a medical expense on schedule A but only the amount that exceed 7.5% of the adjusted gross income (AGI).

Maybe you are a self employed Californian but you have a somewhat large company – you probably will want to investigate a straightforward group health plan or a quasi cafeteria plan/medical reimbursement approach. All of this depends on your goals for the company.

Health insurance and other employee benefits can be a great way to attract, reward and retain employees and of course take care of your health and security. Fill out our 30 second short form to compare California individual health insurance quotes from multiple CA companies.

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