Tag Archives: freelance

Why Repealing Affordable Health Care Will Hurt The Freelance Economy

Photo: Aaron Thomas via Unsplash

Photo: Aaron Thomas via Unsplash

The Affordable Care Act has made health insurance accessible for millions of freelance workers, a number that is expected to account for 40% of the workforce by 2020. For various reasons self-employment is also increasingly popular amongst millennials, with nearly 40% of the millennial workforce already describing themselves as self-employed. To put things into perspective, that is 60 million Americans, and the numbers are on the rise.

A freelance economy revolves around companies who hire independent workers on a short-term basis to complete a specific set of tasks. The term “freelancer” can also include consultants, solopreneurs, lifestyle entrepreneurs, and other types of independent workers able to contribute to a company’s operations while remaining lean to both parties’ benefit. This cohort, known for being nimble and resource-savvy, is key to job growth, economic innovation, and technological progress.

If the American Health Care Act act passes (currently passed by The House but not the Senate) and the Affordable Care Act is repealed, it is certain that the monthly cost of health care for self-employed individuals will skyrocket. This will make acquiring health care near impossible for many independent workers.

Under the law, individuals who make roughly less than $46,000, or families of four making less than $95,400, qualify for lower premiums. This means that they can pay as little as a third of the retail price for health insurance via federal taxcredits — that is, if they don’t already have access to health insurance through an employer.

Growth of the freelance cohort will stall as many new freelancers will be intimidated by the astronomical monthly expense without these credits — or simply put, they will be unable to meet the expense all together. Many existing freelancers will undoubtedly be forced to return to corporate life, surrendering the freedom and flexibility that made freelancing so attractive to begin with — or alternatively, forgo health care altogether if securing full-time employment at a company with health benefits is not an option.

The suggestion that the United States will not provide reasonable health coverage to its independent working population is troubling. Not only is it bypassing what should be a fundamental right for any member of a functioning society, but it stalls innovation in a competitive and ever-changing global economy. Let us not forget, many of our recent industry disruptors began their ventures solo and/or relied on contractors in the early stages of business.

Freelancers Union, a non-profit organization that aims to ensure that independent contractors receive adequate rights, protections and professional benefits, has handpicked health insurance plans on their website to fit freelancers’ needs. The online private exchange requires a qualifying event in order to apply (examples include: job loss, relocation, discontinued carrier plan). If qualified, HMO plans with a deductible of $5,500 for an individual ($11,000 for family) start at $285 per month for freelancers in the state of California through plans offered by Kaiser, Blue Shield, Anthem, and Sutter Health. For a lower deductible, plans start closer to $760.00 per month.

The Affordable Care Act has made healthcare available to millions of Americans striking out on their own. By repealing it, we are placing freelancers in a precarious position. Health care will become too expensive for the fastest growing segment of today’s soon-to-be largest workforce. As a result, we are not only inhibiting the health and wellness of this large cohort of Americans, but we are limiting the options for the workers of tomorrow’s economy.

Going Freelance – 5 Tips For Entering The Freelance Economy

5 tips for entering the freelance economy

Photo Source: Kaboom Pics

A few weeks back I gave a talk at The Alley about my experience in joining the freelance economy. The evening was filled with personal stories and powerful tips for getting started. I learned a lot from the other presenters and had a great time sharing my experience so far. Below are key takeaways from that talk.

1. Establish your value-add.

Before you make the jump, it’s critical to understand the value of what you bring to the marketplace. Speak with business leaders in your circle to understand their needs within your area of expertise. For me, it was an intimidating process because marketing is such a huge vertical. After I understood what people needed the most help with, I was able to establish a framework for how to help.

2. Get organized.

I use Trello to manage action items related to the business itself. For example, I have several lists set up for capturing to-dos and tracking leads.

One thing I wish I did earlier was set up a separate gmail account for business correspondence only. Having a separate account helps keep things streamlined and creates a better work-life balance.

Each client gets a tracking number. This number is added to their Trello board, Google drive folder, and company profile within FreshBooks.

Google drive is key for collecting and sharing project files and documentation. I use Freshbooks for invoicing, Slack and Skype for communication, and countless other services for managing my calendar and keeping inboxes streamlined.

I went to the bank and got a business checking card to separate business expenses from personal ones. In conjunction with Mint, this will make things much easier come tax season.

3. Optimize your environment.

For the first two months as a freelancer I worked from home. I learned that it wasn’t sustainable over time.  I needed to get out of the house in order to work more efficiently in general, and get at least a little amount of socialization in.

One of the hardest parts about going freelance for me, outside of worrying constantly about money, was working alone 100% of the time. I learned that I need to be around other people to get the juices flowing,  so I designed a work environment that worked the best in order to achieve that.

4. Remember that Energy is greater than Time.

As a freelancer it’s important to optimize your time, but it’s equally if not more important to maintain mental energy. If your energy is low, you won’t be able to complete tasks as quickly or with nearly as much focus. It may seem selfish at first to prioritize self-care and maintain a healthy work-life balance. But in the end, it’s critical in order to prevent burn out and keep your energy reserves high over a sustained period of time.

5. Plug-in to like-minded communities.

Go to events hosted by companies that support the freelance economy. Some examples of companies that host great events include:  WorkFrom, Fivver, and Cloudpeeps. Explore co-working places and opportunities to work with others. Co-working communities often host events for socializing and have Slack channels for participating in knowledge share during the work week. These communities are helpful for building friendships, finding resources, and generating leads.  

Remember, your desire to be a freelancer is a logical one. It was never explained to us when we were young that this way of living and working is a viable option, therefore the concept can at times appear hazy.

However, the percentage of freelancers is on the rise. Freelancers are part of a larger movement focused on creating a sustainable and independent work economy. With some solid strategy, decent organizational skills and willpower, you can make the transition too.

View the presentation from my talk here.