Running your own business brings freedom and flexibility, but it also means you’re responsible for securing your own health coverage.
Without employer-provided benefits, tracking down affordable and adequate insurance can be overwhelming.
Indeed, nearly one in four independent workers lacks health coverage — a substantially higher proportion than employees, according to a 2021 paper in Health Services Research.
Skipping health insurance may seem like a way to save money now, but it can lead to serious financial risk down the road.
6 Health Insurance Routes for Independent Workers
Being a contractor, freelancer or solo entrepreneur shouldn’t stop you from getting health care.
Consider these six avenues to locate reasonably priced health insurance when you’re self-employed.
1. Health Insurance Marketplace
The Health Insurance Marketplace, established under the Affordable Care Act, is designed for people who don’t have access to employer-sponsored coverage.
This includes part-time workers, gig economy participants, students, self-employed individuals, those between jobs and early retirees under 65, among others.
Many of the roughly 14.5 million people enrolled through the public marketplace receive subsidies to reduce their monthly premiums, which can significantly lower your insurance costs.
There’s no strict income ceiling to be eligible for subsidies, but lower earnings generally mean a larger premium tax credit.
Open enrollment normally runs from Nov. 1 to Jan. 15 each year. That window is the primary time to enroll in an ACA plan unless you experience a qualifying life event, such as marriage or divorce.
To enroll, visit HealthCare.gov. From there you can sign up for a new plan, review an existing policy or compare available options.
2. Health Insurance Brokers
Health insurance brokers — for example, Stride and Gravie — compile plan options from multiple insurers based on the coverage you want so you can compare choices more easily.
Using a licensed agent or broker can be useful, particularly if you’re unfamiliar with how health plans differ.
Keep in mind that most agents and brokers earn commissions on the policies they place.
That doesn’t make their help bad by default, but it’s wise to be aware that commission structures can influence which plans they suggest.
3. Join Your Partner’s Employer Plan
If your partner has access to employer-sponsored health insurance, you may be eligible to join their plan — a potentially economical route to coverage.
Some employers permit spouses or domestic partners who are self-employed to enroll regardless of their employment, while others may ask for proof that alternative coverage isn’t available.
You may need to wait for your partner’s open enrollment to be added, unless a qualifying life event (like marriage) allows you to enroll earlier.
4. Freelancer and Industry Groups
Many professional associations and affinity groups provide group health plans for their members. Joining one of these organizations can open the door to discounted group pricing.
Freelancers Union, for instance, helps independent workers access affordable insurance options.
The National Association for the Self-Employed focuses on aiding small-business owners and freelancers. As a NASE member, you can request a quote for their insurance offerings.
Industry-specific groups like the National Writers Union or the Professional Photographers of America are useful resources for leads on lower-cost health plans.
5. Direct from Health Insurance Companies
Insurers such as Cigna and UnitedHealthcare sell private policies geared toward the self-employed.
These carriers provide a spectrum of price points and coverage choices. It can take time to identify the plan that best matches your needs, but the research is worthwhile.
Be aware that buying an individual plan directly from a private insurer can be relatively expensive.
6. Health Care Sharing Ministries
Faith-based health sharing ministries pool members’ contributions to assist with medical costs.
Members contribute monthly and the group allocates funds to help pay covered health expenses, functioning as a communal safety net.
Most ministries require members to adhere to certain religious or ethical guidelines to participate.
While these groups can be appealing, remember they aren’t legally obligated to pay your medical bills.
Coverage can vary widely, and some services or pre-existing conditions may be excluded or limited.
What Does Health Insurance Cost for the Self-Employed?
Age, geographic area, desired level of coverage and the particular plan you select all affect insurance costs.
Because so many factors influence price, pinpointing an exact average is difficult.
For example, the average marketplace enrollees pay about $438 per month for coverage according to KFF. Your premium could be substantially lower depending on your location or eligibility for subsidies.
Fortunately, you may qualify for tax breaks tied to health insurance costs.
The self-employed health insurance deduction lets you deduct 100% of your health insurance premiums from your adjusted gross income when filing taxes.
A key benefit is this deduction adjusts your income rather than being an itemized deduction, so you can claim it regardless of whether you itemize or take the standard deduction.
Ways to Cut Health Insurance Costs
As a freelancer, you’re also the person in charge of benefits decisions. You need to find the most suitable plan at the best price.
Keep these strategies in mind as you shop for coverage.
- Start with the marketplace: For many self-employed people, Marketplace plans offer the most value. Explore those options before turning to brokers or private exchanges.
- Do the math: Look beyond monthly premiums — factor in deductibles, copays and out-of-pocket maximums to understand total potential costs.
- Think about high-deductible plans: HDHPs typically have lower premiums but higher deductibles (often $1,500 or more). Pairing an HDHP with a health savings account can deliver tax perks and help you put money aside for medical needs.
Regardless of the route you take, read the policy details carefully. Knowing the ins and outs of your coverage can save you significant money and hassle.
Amelia Turner is a Certified Educator in Personal Finance and a senior writer at Savinly. She writes about retirement, investing, taxes and life insurance.
Jordan Hayes, a former staff writer at Savinly, contributed reporting to this article.
