Cost of Health Insurance for Self Employed

[Applause] Wow that was pretty good right anyway how's it going everybody this is beat the bush today I'm gonna talk about self employment health care costs now before I quit my job and probably before anyone quits their job they're really worried about how much it would cost them in health care costs after they have to pay it for themselves alternatively if you get laid off you can sign up for Cobra but whenever I look at the health insurance premium is actually more than what I need to pay for if I just sign up on the Affordable Care Act stuff anyway I realize that

doing a health care insurance video is likely really difficult because I can't just pinpoint a cost to it to any single person because everyone's different ages it cost differently you might want a certain level of care you might want it from a certain healthcare provider so it's gonna be all over the place in terms of costs now before I put my job in likely anyone that is looking to become self-employed go to YouTube brow or maybe do freelancing or something they're gonna wonder roughly how much is it gonna cost you that's the general question I had I didn't really want it exact I didn't

need it to be like down to the dollar or even a hundred dollars I just want it to be like is it gonna be like ten dollars is it gonna be a hundred dollars two hundred three hundred five hundred one thousand even I had no idea before actually doing it now the health insurance cost is gonna vary greatly depending on what level of care that you want for example if you go on to covered California website and if you just choose a certain age range certain income and then even for that particular one you can choose from different providers such as Kaiser Blue

Shield Health Net within each one of those providers you can choose different level of care bronze level care silver gold platinum we're in each one of them the insurance pays for a certain amount maybe you only pay for seventy percent eighty five percent ninety percent each one of them is gonna have a different copay and stuff so so I'm just gonna pick one particular type of plan for example the silver type plan at Kaiser and then I'm gonna iterate over the age range so that you can kind of see how much your premium differs based on your income changes now for example I picked

a random area code around here over in California at the age of 20 now assuming you're 20 years old and somewhere in a Bay area now with earnings of sixteen thousand seven hundred and seventy which is one hundred thirty eight percent of the federal poverty level now the federal government determines what that poverty level is and at one hundred thirty eight percent you're just right over the limit for qualifying for Medicare then over one hundred thirty eight percent you won't qualify for Medicare and then you have to buy your insurance through covered California now this video does lean on California a

little bit because that's where I am but it's good to just have an idea of how much it roughly costs this is the main purpose of this video I wanted to know roughly is it in the hundreds how many hundreds just to buy health insurance on your own without an employer now with the age of twenty you're somewhere in the Bay Area you earn sixteen thousand seven hundred seventy you can choose from a plan of Kaiser ninety four HMO for a cost of forty eight dollars and fifteen cents every single month so okay fifty dollars every single month when

you're age 20 all right if you go with Blue Shield a silver plan you have to pay eighty five sixty nine so that's about double the amount so if you want this you know Blue Shield thing I haven't actually used them all that much because I haven't really used that all that much health insurance so if you choose this health care provider you're gonna have to pay more and then there's also health net silver EPO whatever that is this is yet another health care provider and this is gonna cost you 179 dollars and 79 cents one column over you'll see that there's a credit of three hundred fifty three dollars this

is what the federal government is going to subsidize for you but then the total costs of this thing you can see on the far right is the four hundred $1 for 15 cents if you happen to earn a lot more over four hundred percent of the federal poverty level then you're gonna end up having to pay four hundred and one dollars now four hundred dollars for someone that makes over four hundred percent of the federal poverty level it's tough to pay it's annoying because normally if you work for an employer it might only cost you anywhere between $50

to $100 to get covered and your employer place to rest so let me go over this chart from covered California real quick the measurement is in federal poverty level so if you look on the far left it says 100% if you're one person in your household the federal poverty level is twelve thousand sixty dollars 200% is twice that twenty four thousand one hundred twenty dollars four hundred percent is forty eight thousand two hundred forty dollars now if you make more than this as a single person then you won't get any subsidies

at all you have to pay the full price as you can see on this chart the more you can make the more you have to pay in health insurance premiums the less you make the better subsidies that you get and the better a plan that you can get while paying a lower price if you make between 100 and 150 percent of the federal poverty level you're gonna qualify for this Silver 94 plan which generally pays a bit more for any kind of incident that when you have and also the co-pays are a bit lower between one hundred fifty percent and two hundred percent you're gonna qualify for the silver

eighty seven plan which means okay the plan is not going to cover as much of the costs as you can see as you make more money you're not going to be able to qualify for such a good plan you can still choose to get a good plan but it's gonna cost you more so all of this so far has been crazy complicated when I look at it I start getting a headache just looking at it but what I want to know is roughly how much does it cost me how much will it cost me depending on what my income is and how much will it cost me depending on my age so I plotted these over here if you make between 138

percent and 150 percent of the federal poverty level in absolute dollars of one person that's between sixteen thousand seven hundred fifty four dollars and eighteen thousand dollars now this amount making eighteen thousand dollars a year is pretty low so I'm just gonna cover that real quick you can see that line pretty much hovers at the very bottom over here and even as your age increases you won't be expected to pay more and more as your age increase as you increase your income from two hundred percent to two hundred fifty percent now you're gonna have to pay more in premiums they want you to pay

about two hundred dollars and if your age increases I check this I had to go on the covered California website and I plug in the age plug in the salary and every single dot hair that you see is me going through their stupid process one single time and as you can see as you age when you go from 20 years old 25 doesn't matter 45 65 the amount of premium that you're gonna is roughly $200 a month now if you're thinking of going the self-employment route and you think that you're not gonna make all that much the first year if you're gonna make under let's say

about $30,000 then you can go okay well the insurance premium is likely going to be about $200 every single year you're gonna have to take out of your pocket $2,400 and this over here is I'd say an average plan is the silver plan it's not very very good coverage but it does give you like a reasonable amount of coverage now if suddenly you go freelancing and then maybe you make more and more money maybe at some point you make more than 400 percent of the federal poverty level and that is forty eight thousand two hundred forty dollars so roughly fifty

thousand dollars if you make more than this you're not gonna get any subsidies from the government at all rightfully so of course because you make enough money but the catch here is pretty brutal let's say you're 20 years old and then you make more than four hundred percent of the federal poverty level and you look at this chart right off the bat you're gonna have to pay four hundred dollars in insurance premiums every single month that translates to four thousand eight hundred dollars every single year making fifty thousand dollars a year you're gonna have to carve out about five thousand dollars this is ten percent of your take-home

just to put into health insurance as you age the insurance premium is going to increase and the government is not gonna subsidize you at all so you can see here over at 25 years old it goes up to four hundred twenty-five dollars or so at thirty years old it's about five hundred dollars at forty five years old at six hundred dollars a month this is getting pretty hefty and then when you're 55 it's nine hundred dollars if you're 60 years old it becomes eleven hundred dollars every single month this is pretty substantial because if you

have to take out of your pocket thirteen thousand dollars and you make forty thousand dollars this is like a huge portion of your take-home pay this incentivize of course anyone that's over fifty years old to actually try not to make it as much money just so that they can qualify for more government subsidies now I just want to say something about this health care business and how crazy the premiums are you can actually go to a different country get your surgery or something and it'll cost a lot less I actually had my cat

done before in Taiwan and I just went there and I just walked in some dental office and then there go okay yeah we'll accept you and then I got one of my teeth fill and it cost like twenty thirty dollars or something whereas in America if you go to a dentist office is gonna cost you roughly I don't know like 150 200 dollars for the same service so where does this inefficiency lie why does vision and dental even require insurance these days when in a different country you can just walk in some store and then go okay yeah you know a la carte

I just wanna filling here root canal whatever glasses I bought for twenty thirty dollars before you don't need insurance for vision or dental basically in the United States you don't really need vision care unless you're getting something really crazy something really difficult to do then you can get really cheap prescription glasses for twenty thirty dollars even so there's something inherently very wrong with this health care system because when I had dental care I would go in and they would actually want you to come in to do your checkup I assume they get paid the insurance money and they just want you

to come in just to do their little thing do their teeth cleaning or something yearly and really it should not cost all that much however as an employee you don't have a choice of rejecting dental care or anything you just go in and then okay it's something provided for you you don't have to pay all that much maybe like a dollar to $20 every single year for dental care and just the system is very inefficient because twenty dollars might be coming out of your pocket but out of your employer's pocket it might be hundreds of dollars and you actually am forced to go to your dental office to

get your checkup and stuff anyhow I hope this video helps you gauge how much health insurance cost if you were to pay it outright on your own without any employers help if you're interested in supporting this channel check out my audible link down in the video description below where you can get a free audiobook and you don't like this audiobook or this service you can cancel it before the subscription expires and you don't have to pay a thing and you can also help benefit this channel I have a patreon over here where you can message me privately regarding financial matters and as always don't forget to subscribe over here and click that Bell icon next to that subscribe button so they can new notification whenever I upload a brand new video thanks for

watching