HomePopularHow Do Self Employed People Get Health Insurance

How Do Self Employed People Get Health Insurance

More Answers: Health Coverage If You’re Self

Health Insurance for Self Employed: Beyond Marketplace Insurance!
How do I know if Im self-employed or a small employer?

If you run a business that produces income and has no employees, youre considered self-employed. You can buy health coverage through the individual Health Insurance Marketplace®.

Youre not considered an employer only because you hire independent contractors to do some work.
“Employees” are generally workers whose income you report on a W-2 form at the end of the year.

Health Insurance For Freelancers

If you’re a freelancer, your first and best option if you’re married or in a domestic partnership is to get coverage through a spouse or partners employer-sponsored health plan, if available.

If that isn’t an option, an individual plan or an AHP may be the best option. The benefit of enrolling in a marketplace plan is that you may qualify for subsidies, tax credits or cost-sharing reductions that reduce your out-of-pocket health care costs.

“Anyone who has the possibility of qualifying for a subsidy should enroll on the exchange,” Sheeran says.

Just keep in mind the income thresholds for marketplace plans change slightly from year-to-year, so your ability to qualify for the subsidy and reap significant cost savings could differ every year depending on your self-employment income.

Signing up for an HDHP and opening an HSA is another option. The federal government defines a high deductible plan as any plan with at least a $1,400 deductible for an individual and $2,800 for a family plan.

The deductible is what you pay out of pocket before your health insurance begins paying for services. At that point, you pay coinsurance, which is the percentage you pay for health care services after you meet your deductible. Insurance picks up the rest. Typically, an insurance carrier will pay 80% of the covered services costs after you meet your deductible.

Best For Convenience: Cigna

Cigna is our top pick for self-employed individuals looking for convenience because of its virtual care options and prescription home delivery.

  • Virtual services and prescription delivery

  • Expansive provider network

  • Not available in all states

  • Mixed customer satisfaction reviews

Cigna is the oldest health insurance company on our list, with a history dating back to 1792. The company has earned an A rating from AM Best and rankings of 2.5 to 4.0 from NCQA. Cigna also earned high marks, including four regional first places, in the J.D. Power 2022 U.S. Commercial Member Health Plan Study. However, it did receive low scores in some other regions.

Cigna offers global coverage to 180 million customers in 30 countries, which includes 1.5 million providers and facilities. In the United States, the company works with over 67,000 pharmacies, more than 500 hospitals, and over 175,000 mental and behavioral health providers, growing 70% since 2016.

Cigna offers individual plans in 13 states: Arizona, Colorado, Florida, Georgia, Illinois, Kansas, Mississippi, Missouri, North Carolina, Pennsylvania, Tennessee, Utah, and Virginia. Depending on where you live, you may have access to Cignas other products like Medicare, Medicare supplemental plans, dental insurance, vision insurance, or international health insurance.

Read Also: Can A Pregnant Woman Get Health Insurance

What Is The Average Cost Of Self

There are five factors that may impact the cost of self-employed health insurance for Affordable Care Act-compliant plans: age, location, tobacco use, individual vs. family plans, and plan category. Some states have rules about how much these factors may impact your monthly premiums.

Premiums may be up to three times higher for older workers, and tobacco users may pay up to 50% more. You may also pay more in a state with less competition among providers. The good news is companies cant charge more based on your gender, your current health status, or medical history.

Using Healthcare.gov, we ran a few quotes and saw that geography can have a huge impact on your premiums. The plans available in your area and level of competition are a very important factor in determining your prices. All other things being equal, we saw someone’s premiums change by hundreds per month depending on where they live.

Reasons To Take Health Insurance If You’re Self

Here are the Best Healthcare Options if You

A health insurance policy, also known as private medical insurance supports the services you’ll receive on the NHS and offers more choice when selecting:

  • Treatments
  • A specialist doctor or consultant, and
  • The hospital which administers the aid

Its particularly useful for fast-tracking surgery, and consultant or referral appointments, which can be invaluable if you want the minimum of disruption to your working schedule.

Also Check: How Much To Employers Pay For Health Insurance

Unique Needs Call For Unique Coverage

Though being self-employed may offer independence, increased job satisfaction and a better work/life balance, what it doesnt offer is access to group health benefits. As a result, if youre self-employed in Canada, youre responsible for paying for your own health and dental costs not covered by public health plans. That can easily cost hundreds of dollars a year.

Manulifes Flexcare® Health & Dental Insurance Plans provide a range of solutions tailored to the unique needs of people who are self-employed. Theyre designed to help protect you against out-of-pocket health expenses.

Coverage Options For Self

The best way to shop for health insurance in New Jersey is to get a better understanding of the individual and family plans that are available. The Affordable Care Act requires all health plans to be organized into Bronze, Silver, and Gold categories according to the level of coverage they offer. Theres also a Catastrophic coverage plan available for people under 30 or those who qualify for a special exemption.

All plans cover the same essential health benefits the difference is what you pay in monthly premiums and out-of-pocket costs when you need care. The following chart may help you decide what type of health plan is best for you based on how much you are willing to pay towards your premium each month and the amount youll pay when you receive care.

For example, a Bronze health plan may be best for you if you don’t use a lot of health care services and want to pay less in monthly premiums. On the other hand, Gold might make more sense if you use a lot of health care and are able to pay more in monthly premiums.

Meet the requirements and need just-in-case coverage

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Pick A Comprehensive Health Insurance Plan

Regardless of whether you purchase an individual plan from Healthcare.gov or a private company like Blue Cross Blue Shield, UnitedHealthcare, Cigna, or another provider, make sure your health insurance policy is Affordable Care Act compliant. In a nutshell, this means that your plan covers the following list of 10 Essential Benefits, plus they cant have a lifetime or annual maximum:

  • Emergency care
  • Ambulatory care
  • Pediatrics
  • Physical rehab services and equipment

Before 2019, there were federal penalties associated with inadequate health insurance. The rule was called the federal mandate or the individual mandate. Today, there are no requirements regarding insurance at the national level, but some states still impose penalties for not having ACA-compliant insurance.

Other Health Plans To Consider

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If you want to get health insurance but are struggling to afford a standard policy, you might consider a few alternatives.

One option is to get a high-deductible health plan . An HDHP has low premiums, but it requires a much higher deductible if you need medical treatment. These policies may also have higher out-of-pocket costs in the form of a copayment or coinsurance.

Read more: Understanding your health insurance: deductible, co-pay, co-insurance, and out-of-pocket-maximum

If you get an HDHP, you can also get a health savings account , which lets you put aside pre-tax money that can be used to pay for qualified medical expenses. You cant use HSA dollars to pay your premium, but it can help you lower your costs overall. Best of all, if you dont use the money in your HSA, it just rolls over to the following year.

Also Check: Does Humana Offer Individual Health Insurance

Consider Agencies That Could Help

Its easy to feel alone and out of the loop in the world of the self-employed. There isnt a feeling of security that comes with working for a large business. Thats why its a good idea to connect with organizations that offer something similarlike the Association for the Self-Employed. Membership could give you access to discounted health insurance plans, Health Savings Accounts and other support.

What Is The Difference Between Income Protection And Health Insurance

While they can be claimed for under similar conditions, income protection and health insurance are two very different types of pay-out. Income protection is designed to replace any earnings, like your salary, if youre no longer able to work. This allows you to keep up with your usual outgoings. Health insurance is specifically intended to pay off any medical treatment and expenses you may face.

  • Conditions related to blindness and deafness
  • HIV and AIDS

While these may not be covered as part of your self-employed health insurance plan, you should still be able to receive treatment through the NHS.

Also Check: Is Student Health Insurance Cheaper

Comparing Individual And Family Health Plans

  • When you apply for Obamacare individual health insurance, you can also find out of one or more family members are entitled to a government program like Medicaid or CHIP.
  • Some families choose different individual health insurance options for various family members, depending upon medical needs and budgets. For example, children may qualify for CHIP or low premiums with Obamacare health insurance.
  • When children or other dependents qualify for other types of health plans, healthy adults in the family might decide to fill in coverage gaps with such alternatives as short-term health insurance or medical insurance packages.

Look Into A Health Savings Account

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A Health Savings Account is not a health insurance plan, but a special tax-sheltered savings account you can use to accumulate funds for medical bills. To be eligible for an HSA, you must be covered by a high deductible medical insurance plan. HSA rules are complicated, so study them carefully. On the plus side, unlike flexible spending accounts, at the end of the year, HSA funds that you don’t use for medical bills are yours to keep to pay for future medical bills or to supplement retirement.

Read Also: Is Platinum Health Insurance Worth It

Leaving Esi But Staying Covered

Q: If I become self-employed, can I keep the health insurance I already have?

A: The brave individuals who become self-employed often preserve their health coverage by taking the initial step of extending their employer-sponsored health benefits through COBRA. The Consolidated Omnibus Budget Reconciliation Act of 1985 allows workers to extend those benefits for up to 18 months after leaving a job.

The downside: employers no longer pay their portion of the plans premium, which can often be 75 to 80 percent or more of a plans cost. By keeping the coverage under COBRA and paying your own portion along with what your employer was previously paying , youll likely see a huge difference in what you pay for the coverage.

Note that if you work for a company with fewer than 20 employees, COBRA does not apply. But state continuation laws in many states create COBRA-like provisions for people who work for small employers. Check with the Insurance Commissioner in your state to see if state continuation is available to you.

When Can I Apply

If youre planning to leave a job that provides health insurance, or if you left a job within the last 60 days, you may qualify for a Special Enrollment Period. This means youll have 60 days after that qualifying life event to shop for affordable self-employed health insurance.

Otherwise, you can shop for a health plan during the Open Enrollment Period, which is between November 1 and January 31.

Read Also: Can I Add My Mother To My Health Insurance

What Is The Best Health Insurance For Self

The best self-employed health insurance is different for everyone based on your personal needs. When shopping for self-employed health insurance, there are several factors to consider:

  • Coverage: Consider what kind of health insurance coverage is most suitable for you, then check with potential providers to ensure availability.
  • Medicine: If you take a specific drug, check to see whether your preferred health insurance provider covers the right prescription medications.
  • Premium: Your health insurance premium is the amount you pay each month for your health coverage, so its critical to ensure that premiums fit into your budget.
  • Deductible: This is the amount you have to pay out-of-pocket before your insurance coverage kicks in for health care services.
  • Copay: When you visit the doctor, you likely have to pay a copay.
  • Network: Most health insurance providers have a specific network of medical providers that will be covered under your plan, so be sure that any preferred providers are covered under your new health insurance plan.
  • Third-party ratings: Rating providers like J.D. Power for customer satisfaction and AM Best for financial strength are key to understanding what a company will be like to work with. You can also check out Insures Best Health Insurance Companies for reviews.

Coverage From A Spouse

How to Get Health Insurance When Self-Employed

Most employers that have health plans provide coverage for employees spouses. According to a 2020 report from the Kaiser Family Foundation , 95% of companies with health plans offer coverage for spouses. However, they dont necessarily cover as much of the cost for spouses premiums as they do for employees.

According to the KFF report, the average cost to insure a single worker on a company insurance plan was $7.470 in 2020. Of this amount, the employer covered 83%, leaving 17% roughly $1,270 per year for the employee.

In 2019, the average premium cost for employee-plus-one coverage on a company health plan that is, the cost for a worker and one other family member > was $13,989, according to the KFF. However, the average share of this cost paid by the employer was only $10,108, or 72%. That means the average out-of-pocket cost for the employee was $3,881 more than three times as much as the cost of self-only coverage.

So on average, if youre a self-employed person trying to get coverage on your spouses plan, you can expect to pay about $2,600 per year for it. However, depending on your income, it could be cheaper for you to buy your own plan with an ACA subsidy or get coverage through Medicaid. Before you sign up for your spouses plan, check out other options to see how they compare in terms of both cost and coverage.

Also Check: Is Cobra Health Insurance Retroactive

Guide To Self Employed Health Insurance

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Self-employed people who cant get health insurance through an employer have multiple ways to get health coverage on their own.

Coronavirus hastened the rush to self-employment, but burgeoning technology long ago changed the professional landscape, enabling remote work with ever-improving software and developments.

However, there is much to consider when you work for yourself. Youre responsible for your own taxes, your own payroll, and, perhaps most confusingly, your health insurance.

Ways To Get Health Insurance When You’re Self

Whether you leave a 9-5 job or start your career as an entrepreneur, it’s critical to understand your rights and options for getting coverage for you and your family.


There’s a lot to love about being self-employed, including flexible hours and the ability to work from anywhere. But a major downside is having to foot your entire health insurance bill. However, with a surge in self-employment in recent years 57 million Americans said they did some form of freelance work in 2019 it’s becoming easier to find health coverage as a solo worker.

Here are eight options to find affordable health insurance when you work for yourself.

Also Check: What Is Marketplace For Health Insurance

What Should I Look For

  • Options:You want a choice of plans at prices that work for you.
  • Quality care:You need access to personalized treatment from doctors and hospitals, no matter where you are.
  • Discounted rates:You’ll want a range of in-network doctors and hospitals to choose from, so you can take advantage of discounted rates.
  • Annual check-ups and preventive care at no additional cost1:Preventive care, such as your annual exam and screenings, help you stay healthy. These should be covered under your plan benefits.
  • Easy-to-use tools:Online tools can help you pick plans and find doctors, and predict your costs.
  • 24/7 service:When you have questions, you need access to claim and health care experts who can answer them.

Why Should I Consider Health Insurance If I’m Self

How to Compare Health Insurance for the Self

More than 15% of the UK working population is self-employed. Thats around 4.86 million people. Yet its estimated that 93% of these have no health insurance or critical illness cover in place.

Taking out the right health insurance policy could offer the following benefits:

  • Shorter waiting times – currently the average waiting time for an NHS referral is more than 18 weeks.
  • Access to private health facilities and treatment at a time to suit you.
  • Private accommodation in a hospital or clinic.
  • Possible access to more advanced treatments and medications not available on the NHS.

Also Check: How Does A 26 Year Old Get Health Insurance

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