Best Health Insurance Options for the Self-Employed

Best Health Insurance Options for the Self-Employed

According to the most recent data from the Bureau of Labor Statistics, there are 9.6 million self-employed workers in the U.S. That number is projected to grow to 10.3 million in 2023. One big consideration for self-employed workers is finding health insurance.

As I’m sure you know, this is a big topic.

Since I’ve had to go through the process, I wanted to provide some information about your options to help you navigate finding affordable coverage. There are many different considerations that go into selecting health coverage.

Make sure you consider all different angles and consult with your spouse before making a decision.

Before we get started, I wanted to address some questions that I’ve seen pop up here and there regarding health insurance for the self-employed.

Can I Get Health Insurance if I’m Self-Employed?

In short, yes. There are several different options for securing health insurance coverage when you’re self-employed. If you do decide to go the self-employed route, make sure you add healthcare spending as a budget line item.

Don’t go without coverage because you think it’s too expensive. Even if you’re young and healthy, you never know when something could go wrong. It takes just one medical emergency for the bills to start piling up.

While having coverage in place is essential, review all of your options first. It’s important to do your research and consider all the different ways you can get coverage before making a decision.

How Much Does it Cost for Health Insurance if I’m Self-Employed?

According to, an online health insurance marketplace, the average price for an individual policy in 2018 was $440. Premiums for family plans cost an average of $1,168 per month.

The final price tag for your health coverage will depend on a number of factors including the type of plan you select, if you qualify for any subsidies, your annual income, and so on. has an online calculator to help you estimate your health insurance costs.

Group Health Insurance vs. Individual Health Insurance

One of the first things you need to understand when buying health insurance is the difference between group health insurance and the individual kind. This is something that I didn’t have a firm grasp of going in and I think it helps to understand how these differ so that you know what to expect.

Individual health insurance is what you purchase if you can’t participate in a group plan. You buy this on the open market at a place like If you click this link and make a purchase, we earn a commission at no additional cost to you. or

Just to clarify, you can purchase individual insurance for your entire family. “Individual” doesn’t mean one family member.

Group health insurance is cheaper (with the exact same coverage) than individual insurance. Why? Because with group insurance, the risk is spread across a large number of people. Also, typically with group plans, your employer is picking up some of the costs.

Health Insurance Options if You’re Self-Employed

If you’re self-employed and don’t have employees, you’re looking at “individual” health coverage options. However, if you run a business with one or more full-time employees, you may be able to sign up for group health insurance as a “one man group.” See this list of one man group states.

Another way you may qualify for group insurance is to look at your trade organizations such as the Freelancer Union. Costco even has a health insurance plan.

Also, there are faith-based medical-sharing ministries, like Medi-Share, that could be a good option depending on your health care coverage needs.

Below are some options to consider when looking for health insurance coverage as a self-employed individual.

Related: Surviving My First Year of Business (Tough Times & Lessons Learned)

Spouse’s Plan

If you’re married and your spouse has group health insurance available through the workplace, this should be your first stop. As mentioned previously, group health insurance plans are often significantly cheaper than what you’ll find on the open marketplace.

In addition, you’ll get better coverage to go with the lower monthly premium.

Even if you’re not married, you may qualify as a domestic partner. Have your spouse check with the Human Resources department on the cost of coverage and conditions for adding another person to the plan.


First, know that if you recently left your job and were covered by a group plan there, you can take advantage of COBRA continued coverage. This means you’ll convert your existing group plan into an individual plan and pay the full price tag.

In my case, to continue with my old group plan, COBRA ended up being very expensive. I think a lot of newly self-employed folks find the same thing. That’s why I’m writing this post. 🙂

Related: Helping an Unemployed Friend or Family Member

However, in some cases, taking advantage of COBRA can be a good option as a newly self-employed individual. Make sure you weigh all of the pros and cons and decide on which way to go before your COBRA eligibility runs out.

Another option to find health insurance is through, the government health insurance marketplace. You can find coverage for either an individual policy or as a small business.

Most states use to purchase health care coverage. However, certain states have their own websites where you can compare options and enroll. Here’s a quick list:

  • California
  • Colorado
  • Connecticut
  • District of Columbia
  • Idaho
  • Maryland
  • Massachusetts
  • Minnesota
  • New York
  • Rhode Island
  • Vermont
  • Washington

Open enrollment usually starts in November and runs through mid-December. Coverage for plans purchased during open enrollment begins on Jan. 1 of the following year.

If you miss open enrollment, you may still be able to purchase insurance if you qualify. Special enrollment such as life changes or circumstances can make it possible to purchase insurance at other times of the year.

Professional Associations

As I mentioned previously, there are certain professional organizations that offer health insurance plans. Becoming a member of an independent worker association or a professional organization can give you access to group insurance at discounted rates.

Do a quick search to find out what professional organizations are available in your line of work. If you’re looking for a more general option, check out the National Association for the Self-Employed, which offers help with purchasing health insurance coverage.

Short Term or Temporary Coverage

While getting short term or temporary coverage is not a great long-term strategy, it can tie you over while you find something more permanent. Short-term insurance plans provide individual healthcare coverage for a defined period of time, up to 364 days.

These plans come with a renewal option so you can extend your coverage beyond the initial period. Many of these plans offer limited benefits and may not cover certain conditions such as pregnancy. Make sure you read the fine print before signing up for a temporary plan.

With that said, these can be a good option to help offset some of the medical risks until you can find a permanent health coverage solution.

Alternatives to Traditional Health Insurance Coverage

There are other options for obtaining coverage beyond the standard health insurance options for the self-employed. One such alternative is to go with a health care sharing ministry rather than a big health insurance carrier such as Aetna.

While health care sharing ministries are not insurance, they can provide a coverage safety net for medical expenses. They could be a viable and often cheaper alternative to traditional insurance so I wanted to share more information.

What are Health Care Sharing Ministries?

At its core, a health care sharing ministry facilitates the distribution of health care costs among members who have common ethical and religious beliefs. It’s important to note that health care sharing ministries do not accept risk or make guarantees that they will pay for medical bills.

Most health care sharing ministries are oriented toward practicing Christians and aligned with the ideas and principles found in the Bible. They use it as the basis for the idea that members have a responsibility to help with each other’s medical needs.

The majority of health care sharing ministries require its members to be actively practicing Christians in the U.S. Some even require a signed affidavit from the members’ pastors as a condition of joining.

With all that said, there are a few that are more lenient and inclusive, even to people who are not practicing Christians. Below you can find information on some of the largest ministries to help you decide if this could be a viable option for you and your family.


Medi-Share started in 1993 with the idea of following a biblical model of health care–Christians helping Christians. Members share each other’s eligible medical bills and are also encouraged to pray for other members in need.

Your monthly share (similar to an insurance premium) is based on the age of the oldest applicant and how many family members are participating. The annual household portion (AHP) is similar to an annual deductible and ranges between $1,000 and $10,500.

The AHP you select at enrollment will determine how much you have to pay out-of-pocket before your bills are covered by the health share. Each month, your monthly share will be matched with another member’s eligible medical bills. You’ll actually get information on whose bills your share is helping pay each month.

Check out our full Medi-Share review.

Christian Healthcare Ministry

Christian Healthcare Ministry claims to be the first and longest-serving health cost sharing ministry. They’ve shared more than $3.5 billion in members’ medical bills. It’s available in all 50 states as well as countries outside of the U.S.

There are three program options to choose from – Gold, Silver, or Bronze. Your monthly premium and maximum out-of-pocket costs will depend on which option you select. There’s also an optional Brother’s Keeper program to protect against catastrophic medical bills.

Limitations do apply for pre-existing conditions so keep that in mind when looking at this as an option. The ministry does have a pre-existing condition program but there are certain conditions that need to be met before you’re accepted and your bills are shared.

Check out our full Christian Healthcare Ministry review.

Liberty HealthShare

Liberty HealthShare started in 1995 and is one of the most liberal of the health care sharing ministries. To be a member, you’ll have to commit to five statements covering belief in God, freedom, and ethics.

There’s no requirement to be part of a Christian congregation to become a member. You’ll also be asked to support the community through healthy living, wise decisions, and good stewardship.

Liberty HealthShare offers three different programs to choose from depending on your resources and circumstances. Each one has an Annual Unshared Amount (similar to a deductible) that has to be met before eligible medical costs will be shared.

Unlike some of the other health care sharing ministries, Liberty covers the cost of an annual physical for all members. In addition, there is no physician network so you can keep all of your regular doctors.

Check out our full Liberty HealthShare review.

The Bottom Line

There are a number of different options for getting health insurance for self-employed individuals. Don’t let the fear of the unknown stop you from starting your own business. Make sure to compare all the different options before making a decision.

In addition to traditional insurance, check out health care sharing ministries as an alternative. They could be a good and affordable option for you in some circumstances. Do your research and make sure you’re comfortable with the risks before finalizing your decision.

Whatever you do, make sure you get medical coverage. Don’t let high costs be the reason you go unprotected or don’t get the necessary treatment. Your health is one of the most important things so make sure you’re covered.

If you’re self-employed, what do you do for health coverage? How do you like it? Share in the comments.


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  1. who would like a “high deductible” plan?  I shopped einsurance and most had great low copays for office visits as long as you ONLY go 3 times a year and to NO specialists.  After that, you first had to fork out 10,000+ out of pocket?   That money equals nearly $5/hr pay to pay for it.  The sad thing is, the millions of people who make less than $20/hr wage can’t afford the hit of this kind of insurance and simply go uninsured.  I’m facing this myself.  The era of jobs w/o benefits because companies can’t afford the burden is growing.  The economy has hit company’s that way.

    • Philip Taylor says

       @DeeBrac I agree. No one wants a high-deductible plan. But like you say, its the state of the health care industry today. Costs are high and insurers pass this cost on to us. On the bright side, we do have public hospitals, free clinics, and federal programs in place like medicare and medicaid which assist those who cannot get on a plan, or who cannot afford their own. I’m personally glad to pay a lower premium in exchange for a high-deductible plan. That may change of course, if big medical issues pop up in my life.

  2. Mrs. Money says

    My husband is a chef and his employer offers individual health care plans. They told me I would be denied coverage if I applied. It sucks. Right now we have insurance through my employer, but I want to stay at home when we have a baby. Health insurance is the only thing holding us back 🙁

  3. Thansk, Bob. I was going to email and ask this very thing. I will check them out.

  4. ChristianPF says

    I really like the idea of the high deductible plans, but with kids in the future, I am just hesitant to go that route. We are currently using Medi-Share – which is a great option for getting maternity and kids covered…