Health Insurance for Self-employed Individuals: What You Should Know

Going out on your own and taking full charge of your career can be exciting, but not having access to employer-sponsored health insurance can be a challenging hurdle. The good news is that self-employed individuals can still enjoy various coverage options. Our team can help you understand your options and make choosing the right plan easier.

Why Health Coverage Matters When You Work for Yourself

Without an employer finding a group health plan and picking up part of the premium, the full cost falls on you. This may make it tempting to go without coverage, but a single unexpected illness or injury can create serious financial strain. Carrying health insurance financially protects both your personal finances and your ability to keep your business running.

Where to Find Coverage

Self-employed individuals typically have several options for health coverage, including the following:

• Marketplace plans through government marketplaces, which may include premium tax credits depending on your income
• Spouse or domestic partner’s employer plan, if you qualify for enrollment
• Professional or trade association group plans, which some industries offer to members
• Health sharing arrangements, which can lower monthly costs but may vary significantly in coverage capabilities
• COBRA continuation coverage, useful as a short-term bridge after leaving a previous employer

Deductibles, Premiums and the Balance Between Them

Plans with lower monthly premiums typically carry higher deductibles, meaning you pay more out of pocket before coverage kicks in. Choosing the right balance depends on how often you use medical care and how much financial cushion you have. A health savings account (HSA) typically pairs well with high-deductible plans and may offer tax advantages.

Getting the Right Fit for Your Situation

The details of health insurance plans can differ in many ways, and the right coverage for self-employed individuals may vary significantly; what works for a freelance designer living on their own may not suit a self-employed contractor supporting a family.

Contact Gaston Business Group to talk through your options and find coverage that fits your work and your life.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.