Being self-employed comes with many perks—flexibility, independence, and the ability to control your own career. However, one of the biggest challenges for freelancers, contractors, and small business owners is securing affordable and comprehensive health insurance. Unlike traditional employees, self-employed individuals don’t have employer-sponsored plans to fall back on. This makes finding the best health insurance for self-employed a crucial and sometimes complex task.
In this guide, we’ll break down your options, share tips on what to look for, and review top insurance plans and providers tailored to meet the unique needs of self-employed workers in 2025.
Why Health Insurance Matters for the Self-Employed
Healthcare costs in the United States can be staggering without insurance. For self-employed people, a serious illness or accident could quickly drain savings or even jeopardize your business.
Having reliable health coverage provides:
- Financial protection against high medical bills
- Access to preventive care to maintain good health
- Peace of mind to focus on growing your business
- Compliance with the Affordable Care Act (ACA) requirements to avoid penalties (depending on your state and income)
Key Factors to Consider When Choosing Health Insurance as a Self-Employed Individual
When searching for the best health insurance, consider these factors carefully:
1. Coverage and Benefits
Look for plans that cover essential health benefits including:
- Doctor visits and specialist care
- Hospitalization and surgeries
- Prescription drugs
- Mental health services
- Preventive care like vaccinations and screenings
- Maternity and newborn care if applicable
2. Premiums and Out-of-Pocket Costs
Balance the monthly premium cost against deductibles, copayments, and coinsurance. Lower premiums often mean higher out-of-pocket expenses and vice versa. Choose what fits your budget and health needs.
3. Network Size
Check if your preferred doctors, specialists, and hospitals are in-network. Out-of-network care typically costs more.
4. Flexibility and Plan Types
- Health Maintenance Organization (HMO) plans usually have lower premiums but require referrals for specialists.
- Preferred Provider Organization (PPO) plans offer more freedom to see any doctor but can cost more.
- Exclusive Provider Organization (EPO) plans combine features of HMOs and PPOs.
- High Deductible Health Plans (HDHPs) paired with Health Savings Accounts (HSAs) can save money if you’re healthy and want tax advantages.
5. Eligibility for Subsidies
If your income qualifies, you might be eligible for premium tax credits or cost-sharing reductions through the ACA marketplace, making insurance more affordable.
Best Health Insurance Options for the Self-Employed in 2025
1. Marketplace Plans (ACA Plans)
The Affordable Care Act marketplace remains one of the best places for self-employed people to find comprehensive coverage. You can compare multiple plans in one place, and if you qualify, receive subsidies based on your income.
- Pros: Guaranteed coverage, essential benefits, possible subsidies
- Cons: Premiums can be high without subsidies, limited enrollment periods
2. Health Sharing Ministries
These are faith-based organizations where members share medical expenses. They are not insurance but can be a lower-cost alternative.
- Pros: Lower monthly costs, community support
- Cons: Not regulated as insurance, may not cover pre-existing conditions or all services
3. Private Health Insurance
You can buy health insurance directly from private insurers outside the marketplace.
- Pros: Potentially more plan options, year-round enrollment
- Cons: May not qualify for subsidies, premiums can be higher
4. Short-Term Health Insurance
Designed for temporary coverage gaps, short-term plans usually have limited benefits and don’t cover pre-existing conditions.
- Pros: Lower cost, quick approval
- Cons: Not comprehensive, not ACA-compliant
5. Professional Association Plans
Some professional or trade organizations offer group health insurance plans to their self-employed members, which can be more affordable.
- Pros: Group rates, networking opportunities
- Cons: Limited to association members
Top Health Insurance Providers for Self-Employed in 2025
Here are some of the leading companies and platforms that offer great health insurance options for freelancers and entrepreneurs:
1. Blue Cross Blue Shield
A well-known nationwide insurer with a wide network and a variety of plans including ACA marketplace options.
2. UnitedHealthcare
Offers extensive coverage with a large provider network, wellness programs, and competitive pricing.
3. Kaiser Permanente
Known for integrated care and strong preventive services, Kaiser offers HMO plans mostly on the West Coast and Mid-Atlantic.
4. Oscar Health
A tech-driven insurer focusing on user-friendly digital tools, telemedicine, and transparent pricing.
5. Cigna
Offers flexible plans with comprehensive coverage and global health benefits, great for self-employed travelers.
How to Lower Your Health Insurance Costs as a Self-Employed Person
- Shop the Marketplace during open enrollment.
- Compare multiple plans side-by-side.
- Consider a High Deductible Health Plan (HDHP) with an HSA for tax benefits.
- Maximize tax deductions available for self-employed health insurance premiums.
- Maintain a healthy lifestyle to reduce medical costs and premiums.
- Check if you qualify for Medicaid or state-based programs depending on income.
Steps to Enroll in Health Insurance for the Self-Employed
- Gather Your Information: Know your estimated income, household size, and previous coverage details.
- Visit Healthcare.gov or your state’s exchange during open enrollment.
- Compare Plans: Use filters for price, coverage, deductible, and network.
- Check Eligibility for Subsidies: Enter your income to see if you qualify for financial assistance.
- Complete the Application: Submit required documents.
- Make Your First Payment: Ensure your coverage begins on time.
Frequently Asked Questions (FAQs)
Q: Can self-employed people get subsidized health insurance?
A: Yes. If your income is between 100% and 400% of the federal poverty level, you may qualify for premium subsidies through the ACA marketplace.
Q: Are health insurance premiums tax-deductible for self-employed individuals?
A: Yes. You can deduct premiums paid for yourself, your spouse, and dependents as an adjustment to income on your federal tax return.
Q: What if I miss open enrollment?
A: You may qualify for a Special Enrollment Period if you experience certain life events like marriage, birth of a child, or loss of other coverage.
Q: How can I find affordable health insurance if I’m young and healthy?
A: Consider HDHPs with HSAs or bronze-level marketplace plans with lower premiums but higher out-of-pocket costs.
Conclusion
Finding the best health insurance for self-employed workers requires balancing coverage, cost, and flexibility. Whether you choose an ACA marketplace plan, private insurance, or a specialized association plan, thorough research and comparison are essential.
By understanding your options, leveraging subsidies, and selecting a plan tailored to your needs, you can secure affordable, quality health insurance that protects your health and your business.