Health insurance is a major concern for contract workers. Yet, as modern business continues to migrate towards mobile, service-based consulting and contract jobs, there are more are self-employed and freelance workers than ever before.

Being self-employed and finding the right health insurance takes some time and energy, but it doesn't have to be as difficult as it is made to seem. In some ways, it is an advantage. You don't have to settle for what an employer offers, and the money you pay for insurance is tax-deductible. With a little research, you can find a more efficient plan that better meets your health needs.

Today, there are a number of ways for self-employed workers to find affordable health insurance for themselves and their families.

Find Group Coverage

Just because you're self-employed, it doesn't mean you can't still get group rates. There are several ways to do this:

• Get coverage under your spouse's policy. If you're married, this is an easy option. You might want to review the plans that are available to your spouse and choose one that will work best for both of you.
• Organizations and Associations. Some professional organizations, alumni groups, local Chambers of Commerce and even credit unions offer group insurance products. There are rapidly growing groups, such as the Freelancers Union and the National Association for the Self-Employed that are working to provide better options to their members.
• COBRA. If you left, or lost, a full-time job, then you can continue with the health insurance you had with your previous employer for up to 18 months. Be careful with this, as getting short-term insurance might be a better option.

Individual Coverage

If there's no way for you to get group coverage, don't fret, you can still get an individual policy. The most important things when searching for an individual policy is to comparison shop and ask questions. Then compare some more. It won't be quick and it may not be easy. Also, when talking to providers, ask if they offer any special rates for self-employed individuals. Don't be afraid to ask for a better deal.

Indemnity (FFS) insurance is probably going to be too expensive for what most people will want to pay, especially if you will be extending coverage to family members.

The better choices are:

• Short-term. If you are just starting out or have limited cash flow, short-term insurance is a very affordable way to make sure you have catastrophic coverage. It is also a good thing to have while you research your other options.
  

• HMOs and PPOs. Managed care is starting to target the growing number of contract workers. Compare what local providers are offering, then ask for a better deal. You might also use a Flexible Spending Account (FSA) with one of these plans.
  

• Health Savings Accounts (HSA). This is a great option for the self-employed. HSA plans are linked to high-deductible catastrophic plans. Tax-deferred income can be placed in the account for use towards qualified medical expenses. Unused funds roll-over year to year and accrue interest. Some plans let you control how funds are invested, much like a 401(k), and after retirement funds can be withdrawn for any purpose.

• Additional Coverage. If you foresee expensive dental or vision needs, purchasing additional coverage could be worth the money, but be sure you have a comprehensive plan in place first.