Best Health Insurance Companies for Self-Employed
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I’ve been self-employed for 15 years. Fortunately, my healthcare is insured through my wife’s employer, where she works full-time. It’s a benefit that I’m very thankful for.
Freelancers, small business owners, independent contractors, and others who work for themselves don’t have to rely on a spouse to get affordable health insurance. Many options exist, mainly through the Affordable Care Act (ACA), also known as Obamacare.
It’s a federal program established in 2020 to provide subsidized healthcare for low-income households, including self-employed workers. The program’s Health Insurance Marketplace helps gig workers and others find and enroll in private health insurance plans. Some states also offer this service through separate platforms, though most use the federal site at healthcare.gov.
Sorting through health insurance plans can take some time, so we’ve compiled a list of the best health insurance options for the self-employed.
In this article
Overview of best health insurance for self-employed
Company | Best for |
|---|---|
Blue Cross Blue Shield | Large provider network |
Cigna | Prescription delivery |
Kaiser Permanente | Streamlining insurance with care |
United Healthcare | Large provider network |
Aetna | Tax credits |
Oscar | 24/7 emergency care |
CHIP | Children without Medicaid |
Up to $2 million in coverage
- Get covered in 5 minutes.
- 95% of customers approved.
- No Hassles. No Gimmicks. Easy Application.
- Non-Commissioned Agents.
- Ages 20+
- 100% Online Application.
- Fast Coverage.
Best health insurance for self-employed
Blue Cross Blue Shield
Blue Cross Blue Shield is the largest healthcare network in the country, with more than 1.7 million doctors and hospitals. If you live in any state in the country, along with Washington, D.C., and Puerto Rico, you should be able to find a Blue Cross Blue Shield (BCBS) health provider near you.
If you expect to need a lot of medical services, BCBS has some of the lowest-cost Gold plans among self-employed health insurance plans. In the Health Insurance Marketplace, Gold plans usually have higher monthly premiums but lower costs for care. Gold can be a good choice if you don’t mind paying more upfront because you’ll pay less when you get care.
Gold plans can be beneficial for self-employed workers because they’ll know how much they’re paying for healthcare through the higher monthly premiums, and can budget for it.
The marketplace has four health plan categories, which are based on how you and your plan split the health care costs of your plan. They don’t have any connection to the quality of care given. Here’s an estimate of costs, as determined by the federal government:
Plan category | Insurance company pays | You pay |
|---|---|---|
Bronze | 60% | 40% |
Silver | 70% | 30% |
Gold | 80% | 20% |
Platinum | 90% | 10% |
Depending on where you live, the health insurance options at Blue Cross Blue Shield include gym memberships and gym equipment, dental insurance, vision and life insurance coverage.
BCBS is a group of 35 companies, so your experience and benefits may vary by region. Research BCBS in your state before enrolling.
Cigna
Cigna has 1.5 million in-network providers and 67,000 pharmacies. Cigna offers private health insurance in only 12 states: Arizona, California, Colorado, Connecticut, Florida, Georgia, Maryland, Missouri, North Carolina, South Carolina, Tennessee and Texas. It sells dental plans in all 50 states plus Washington, D.C.
For self-employed people who work from home, Cigna’s best features are that it offers video chats with doctors and prescriptions delivered to patients’ homes.
Like Blue Shield Blue Cross, Cigna offers low-cost HMO plans. An HMO is a health maintenance organization that is a type of health insurance with a list of providers such as doctors, medical groups, hospitals and labs. HMOs are usually cheaper than other kinds of health insurance coverage, though a downside is they have a more restricted network and less control over seeing specialists.
At the other end are preferred provider organizations, or PPOs. These cost more but offer more flexibility for the common in-network choices and let users go out of their network for care.
A third option is the exclusive provider option, or EPO, that Cigna offers a low-cost option of. An EPO is a hybrid of HMO and PPO plans, allowing more control for patients without higher costs. An exclusive network of providers must be used, but patients don’t have to commit to a primary care physician to have them refer specialists within its provider network. EPOs are often cheaper than a PPO plan.
Kaiser Permanente
You should be able to find all of the health benefits and coverages you need from Kaiser Permanente. It offers comprehensive coverage with health centers for all of its services, and has free virtual services.
Kaiser is one of the most popular employee-sponsored healthcare companies around, which is great if you work at a large company and maybe even at a small business. But for the self-employed, individual plans at Kaiser will likely cost more than they would through other health insurance options.
Kaiser has more than 23,982 physicians, 68,218 nurses, and 75,000 allied professionals in 39 hospitals and 633 medical facilities It serves 12.7 million people in California, Colorado, the District of Columbia, Georgia, Hawaii, Maryland, Oregon, Virginia, and Washington state.
Most plan options at Kaiser have no out-of-network coverage except for urgent care or emergencies.
One feature that separates Kaiser from other health insurance companies is that it provides medical care through the same company. This streamlines the experience between health insurance and health care, and can make it easier to track out-of-pocket costs and manage claims. A downside, however, is its lack of flexibility when choosing health care providers, since Kaiser is an HMO only.
United Healthcare
United Healthcare’s network is one of the largest in the country, with 1.3 million healthcare providers and more than 6,500 hospitals in all 50 states.
Self-employed workers and their families can find many health benefits and some of the best health insurance premiums around through United Healthcare. It offers short-term health insurance, dental and vision coverage, and access to Medicare and Medicaid plans.
United Healthcare is one of the cheapest options for self-employed health insurance. It offers wellness discounts and low-cost prescriptions. Its smartphone app lets users view health plan details, create a digital ID card, and manage prescriptions. A tablet or computer can also be used on the app.
Its large national coverage also extends overseas, where international travelers and expats can get healthcare through its Global plan. The plan has more than 5 million members.
Aetna
Self-employed workers may be able to lower their monthly premiums the most through affordable health insurance costs through Aetna. It has low premiums by making its plans eligible for the maximum premium tax credit through the Affordable Care Act (ACA).
ACA allows premiums to be reduced based on your income. The lower your income, the closer you can get the premium to as low as $0. Any tax credit you qualify for can be used in advance to help pay your premiums. An Aetna agent can help you go over your coverage options to see if its lower premiums are available for you.
Aetna’s plans qualify for the maximum premium tax credit because it only offers the essential health benefits outlined by the ACA. Aetna offers, HMO, PPO and EPO plans.
The self-employed may benefit from Aetna’s free or low-cost MinuteClinic for preventative and emergency services, and from 24/7 virtual care that can be as low as $0.
Aetna serves all 50 states. It is a CVS Health company with 39 million members. Aetna doesn’t make its number of providers easy to find nationally.
Oscar
Oscar is only available in 22 states, but all of those states allow subsidies through the ACA. If it’s available in your state, it may offer the lowest premiums and deductibles than you can find elsewhere. It has nearly 1 million members
Copays are $0 on virtual care on most plans, and app users can get rewarded with up to $75 per year for hitting daily step goals.
Oscar’s virtual urgent care is available 24 hours a day, seven days a week through its mobile app. Most of its plans offer virtual care for free. You can also talk to a doctor and get a prescription through the app, and can track your deductible. Users can video chat, message or talk by phone with a doctor for their primary care or for urgent care.
Oscar is an EPO, not a PPO, and it doesn’t offer out-of-network coverage. A referral isn’t needed to see a specialist, but customers are restricted to Oscar’s provider network.
CHIP
The Children’s Health Insurance Program, or CHIP, provides low-cost health coverage to children in families that earn too much money to qualify for Medicaid. It also covers pregnant women in some states, and each state offers CHIP coverage of children.
Each state program has its own rules about qualifying for CHIP. If you apply for Medicaid coverage through your state agency, you’ll find out if your children qualify for CHIP. You can also apply for CHIP through the Health Insurance Marketplace.
The program offers free routine “well child” doctor and dental visits. Some copayments may be required for other services. Monthly premium costs differ by state, but users won’t have to pay more than 5% of their family’s income for the year.
CHIP benefits can vary by state, but all provide comprehensive coverage such as: emergency services, doctor visits, immunizations, prescriptions, routine check-ups, dental and vision care, inpatient and outpatient hospital care, and lab and X-ray services.
More than 7 million children are enrolled in CHIP.
Up to $2 million in coverage
- Get covered in 5 minutes.
- 95% of customers approved.
- No Hassles. No Gimmicks. Easy Application.
- Non-Commissioned Agents.
- Ages 20+
- 100% Online Application.
- Fast Coverage.
Summary of best health insurance for self-employed
Company | No. of providers | Copays | Highlights |
|---|---|---|---|
Blue Cross Blue Shield | 1.7 million | $10 | Large provider network, low-cost Gold plans |
Cigna | 1.5 million | $0 | Prescription delivery, low HMO, EPO plans |
Kaiser Permanente | 167,200 | $5 | Many services in-network, streamlined claims |
United Healthcare | 1.3 million | $0 | Large network in all 50 states, smartphone app, overseas plan |
Aetna | Not available | $20 | Max tax credit that can lower premiums, some free care |
Oscar | Not available | $0 | Free virtual urgent care 24/7 on some plans, low costs |
CHIP | Not available | $0 | For children in families earning too much to qualify for Medicaid |
FAQs
Does Obamacare cover pre-existing conditions?
Yes. None of the ACA plans can reject you, charge you more, or refuse to pay for essential health benefits for any condition you had before health coverage started. Once you’re enrolled, the plan can’t deny you coverage or raise your rates based only on your health. Medicaid and CHIP also can’t refuse to cover you or charge you more because of pre-existing conditions. If you’re pregnant when you apply for an ACA plan, you can’t be rejected or charged more because of your pregnancy. Once enrolled, your pregnancy and childbirth are covered from the day your plan starts. Even if you give birth or adopt after enrolling in a Marketplace plan for the year, you qualify for a Special Enrollment Period and can enroll in or change plans outside the annual Open Enrollment Period.
Can I get COBRA insurance if self-employed after layoff by my employer?
The Consolidated Omnibus Budget Reconciliation Act, or COBRA, gives workers and their families who lose their health care benefits the right to choose to continue them for a limited time after losing a job. You may have to pay the entire premium for health coverage.
COBRA can be expensive, though it may be an option for families without health care or health insurance options after losing a job. Self-employed people may be able to get Cobra after a recent job loss. However, they won’t qualify for the self employment health insurance tax deduction because Cobra policies are in the name of the former employer.
Can the self-employed use an HSA?
Yes. A health savings account, or HSA, allows anyone to put money aside for qualified healthcare expenses without paying taxes on the money deposited. The money can’t, however, be used to pay premiums. A high-deductible health plan is required to open an HSA. The deductible can’t be less than $1,400 for an individual or $2,800 for a family.
Why you should (or shouldn’t) use insurance companies for self-employed
Self-employed need health insurance just like anyone else. Without it, they would save money but could face financial problems if an illness or injury struck. Paying medical bills out of your own pocket can be a lot more expensive than buying comprehensive health insurance.
Self-employed workers can’t rely on an employer to pay some of the costs of health insurance for them, so they’re often on their own when buying it. It can be more expensive for independent contractors and others who work for themselves, but it should still be affordable under the Affordable Care Act.
You should buy health insurance from companies if you’re self-employed and you don’t qualify for federal programs such as Medicaid and Medicare because you don’t earn a low enough income or are under age 65.
Short-term health insurance is an option if you’re transitioning into self-employment and managing gaps between plans. Short-term plans of a few months to up to a year are affordable but have less comprehensive coverage, and work best for healthy people. Health benefits that are often excluded include preventative care, mental health care, and prescription drugs.
When comparing insurance plans, be sure to add up the costs and make sure you can afford them. They include the premium and its deductible. The premium is the monthly charge for coverage, and a deductible is how much you pay for as a patient before the insurance kicks in. When one is high, the other is usually low.
Health insurance plans can help the self-employed by giving them a tax deduction as a business expense. Premiums can be deducted from adjusted gross income, which lowers tax bills or increases a tax refund.
Up to $2 million in coverage
- Get covered in 5 minutes.
- 95% of customers approved.
- No Hassles. No Gimmicks. Easy Application.
- Non-Commissioned Agents.
- Ages 20+
- 100% Online Application.
- Fast Coverage.
The bottom line
If you’re a freelancer or other type of self-employed worker, not having health insurance can keep you awake at night, at least in the United States. The Affordable Care Act makes it easier for the uninsured, including the self-employed, to buy health insurance that’s affordable and meets their needs.
It’s easy to shop for at the Health Insurance Marketplace, where you can compare plans and see if you qualify for assistance. With that task done, you can go on to better things, such as finding your next client.
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Writer
Aaron Crowe is a freelance journalist who specializes in personal finance writing and editing. He has worked at newspapers, where he won a Pulitzer Prize, and has written for numerous online publications. These include AOL, US News & World Report, WiseBread, Bankrate, AARP, and many websites focusing on housing, credit and insurance. He lives in California with his wife and daughter.
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