A Silver health plan from Blue Cross Blue Shield costs $621 per month, at full price. Keep in mind that most people with marketplace coverage can get discounts that can significantly reduce the cost of health insurance.
Ambetter has the best affordable coverage among national companies, at $516 per month. Kaiser Permanente offers a good combination of quality coverage and low rates, but it’s only available in certain parts of the country.
Best health insurance for the self-employed
The company has a good rating from HealthCare.gov, 3.5 out of 5 stars. That’s the highest average rating of any large, national brand. Keep in mind that the cost and quality of BCBS insurance depends on where you live. That’s because Blue Cross Blue Shield is made of more than 30 separate companies.
Ambetter is a good choice if you want affordable coverage and you don’t mind middle-of-the-road customer service. On average, a Silver plan from Ambetter is roughly 17% cheaper than the national average.
Kaiser Permanente has cheap rates and quality coverage for self-employed freelancers. However, you can only buy Kaiser Permanente in
eight states and Washington, D.C.
Blue Cross Blue Shield: Best overall if you’re self-employed
Why it’s great:
Blue Cross Blue Shield offers high-quality coverage, access to a large network of doctors and many plan options including
HMOs, PPOs, EPOs and POS plans.
Pros of BCBS
Cons of BCBS
Ambetter: Cheapest coverage for self-employed freelancers
Why it’s great:
Ambetter has the cheapest rates for self-employed freelancers among large health insurance companies. You could save more than $100 per month with Ambetter when compared to the
average cost of a Silver health plan.
Pros of Ambetter
Cons of Ambetter
Kaiser Permanente: Best if you can get it
Why it’s great:
Kaiser Permanente has a perfect 5-out-of-5-star rating from HealthCare.gov. Plus, the company offers affordable coverage. A Silver plan from Kaiser Permanente costs $507 per month, on average.
Pros of Kaiser Permanente
Cons of Kaiser Permanente
Smaller companies sometimes have better rates and service than national brands.
These companies may only sell plans in a few states or counties. For example, Fallon Health has affordable, high-quality coverage, but it’s only available in parts of Massachusetts.
That’s why it’s important to research companies in your area before choosing a plan. In addition, plan cost and customer service can vary by location for larger companies like Blue Cross Blue Shield and Ambetter.
Learn about the best insurance companies in your state
How to get the best health insurance as a self-employed freelancer
The best health insurance for freelancers is usually through the health insurance marketplace.
With a marketplace plan, you may qualify for discounts that can lower your rate by hundreds of dollars per month. Plus, all Affordable Care Act (ACA) marketplace plans have to offer a certain level of coverage. Plans bought outside the health insurance marketplace might not cover important services, such as care for pregnant women, prescription drugs and mental health services.
Marketplace plans offer several important protections other types of health insurance don’t. With ACA coverage, companies can’t deny coverage or charge higher rates because of your health history. All Obamacare plans also have an annual cap on how much you’ll pay for medical care, called an out of pocket maximum.
To get the best coverage as a self-employed freelancer, it’s important to choose the right level of coverage and the best company for your needs. The company you choose will determine the doctors and hospitals you can use, customer service quality and extra benefits.
If you qualify for discounted rates because of your income, you can apply the subsidies to plans from any company and at any
plan tier
you choose.
Choose the right amount of coverage
Choosing the right amount of coverage for your health needs can help you avoid overpaying for health insurance.
Your plan tier determines your monthly rate and how much of your hospital bill you can expect to pay.
Bronze plans have cheap monthly costs. However, the high deductibles mean that your medical care could be expensive. Bronze plans are typically a good choice if you’re young and healthy and you can easily pay a large, unexpected bill from your savings.
Silver plans are a good middle ground. These plans balance average monthly costs and coverage, making them a good choice for people who go to the hospital a few times per year.
They’re also a good choice for people who
qualify for extra discounts,
because you called cost-sharing reductions (CSRs).
Gold and Platinum plans are expensive but have great benefits. These plans are worth it if you expect to need expensive medical care. For example, those who have ongoing health conditions, those who expect to need surgery or those who are pregnant may save money by choosing a higher-tier plan that has better benefits.
When can self-employed freelancers buy marketplace coverage?
You can sign up for or switch coverage each year during open enrollment, which runs from Nov. 1 through Jan. 15 in most states.
You can also sign up any time of year if you lose your coverage for certain reasons, such as moving, getting married or having a child, calledqualifying life events.
You can cancel at any time if your needs change. For example, you may not need self-employed health insurance if you get a full-time job that provides health insurance.
How much does self-employed health insurance cost?
The cost of health insurance for freelancers depends on factors like your age, income, where you live, the plan you choose and the size of your deductible.
Self-employed health insurance costs an average of $621 per month, at full cost. However, most people pay significantly less because of discounts, also called subsidies. More than 9 in 10 shoppers qualify for subsidies, and more than 4 in 10 pay less than $10 per month for coverage after subsidies are applied.
The size of your discount depends on how much money you make. Typically, the less you earn, the larger your discount.
Subsidies can lower prices for all coverage levels except
Catastrophic plans.
You need to sign up for a plan through HealthCare.gov or your state’s health insurance marketplace to get discounted coverage.
Other options for self-employed health insurance
If you’re self-employed, it’s also possible to get health insurance by joining a family member’s plan, or a group health insurance plan through a professional organization. Free government health insurance, called Medicaid, is usually available if you
earn a low-income.
1. Join a family member’s plan
Joining your spouse’s or parent’s health insurance plan can help you get affordable coverage if you’re self-employed. Because the employer typically covers part of the cost, you’ll typically pay less for coverage than you would for a marketplace plan without discounts.
Costs and coverage vary by company. And you won’t have as much flexibility about choosing your plan because you’ll be added to an existing plan.
2. Look into professional groups, unions and associations
You may be eligible for health insurance or medical benefits through an organization associated with your line of work. For example, freelance writers may be able to get coverage through the Writers Guild of America. Also, Drivers Union in Washington gives those who work for Uber or Lyft access to telemedicine, prescriptions and support when choosing health insurance.
You may have to pay a fee to join a professional group. So remember to factor in any membership costs. Coverage and rates vary, so double-check how this group health insurance option compares to buying an individual plan on the marketplace.
3. Find out if you qualify for Medicaid
Medicaid is free or low-cost health insurance for those who have a low income.
You’ll usually be eligible for Medicaid if you earn less than about $21,000 per year (roughly $44,000 per year for a family of four). However, the income limit changes based on where you live and the size of your household.
If you have children or dependents under age 18, they may qualify for other low-income health insurance programs like the Children’s Health Insurance Program (CHIP), which is similar to Medicaid but for children.
Avoid using COBRA when you’re self-employed
COBRA will let you continue your employer health insurance for up to 18 months after you leave the job. The problem is that it’s very expensive.
If you’re leaving a job, it’s usually a better deal to shop on the marketplace for a new plan rather than continue your employer plan using COBRA.
The only exception to this is if it’s at the end of the policy year and you’ve already met your employer plan’s deductible. In this case, it may be worth it to pay the high COBRA rates for a few months, rather than needing to meet a deductible for a new plan.
Should you consider short-term health insurance?
Unless absolutely necessary, steer clear of short-term health insurance.
Short-term health insurance is useful only if you’re trying to fill a gap in coverage, for instance, or if you miss your open enrollment period. Outside of these narrow circumstances, short-term coverage is usually a bad idea.
That’s because they don’t have to offer the same level of coverage as a marketplace plan. Also, insurance companies can charge you a higher rate or deny you coverage altogether based on your health history. Plus, short-term plans don’t have caps on how much you’ll pay for medical care in a single year. That means you could be responsible for tens or even hundreds of thousands of dollars in medical bills if you get sick or injured with a short-term health plan.
Do you need health insurance if you’re self-employed?
Health insurance is important because it protects you from very expensive medical bills.
- Plans have benefits for preventive care and wellness to help you stay healthy.
- Having insurance gives you the peace of mind of knowing you can go to the doctor when you need to.
- Plans include prescription coverage, which gives you access to affordable medications.
- Health insurance protects you from very large medical bills. For example, if you needed surgery that costs $100,000, most of the bill would be paid for by the health insurance company because the plan caps the amount you’ll pay for medical care in a single year, called an out-of-pocket maximum.
Frequently asked questions
What’s the best health insurance for self-employed individuals?
Blue Cross Blue Shield offers the best combination of cost and quality coverage among large insurance companies. Kaiser Permanente is also a good choice, but it’s only available in eight states and Washington D.C.
How much does health insurance cost without a job?
Health insurance costs an average of $621 per month for a Silver marketplace plan. However, most people pay far less for coverage because of discounts that are based on how much you make, called ACA subsidies.
Can you get health insurance as a freelancer?
Yes, freelancers can get high-quality, affordable coverage through HealthCare.gov or their state health exchange. Some freelancers may have access to other types of health insurance, such as a group plan through their family or a professional organization.
Methodology
The average cost of health insurance is based on data from public use files (PUFs) on the Centers for Medicare & Medicaid Services (CMS) website as well as data from state-run marketplaces that don’t use the federal marketplace.
Costs by company are the average monthly rates for a 40-year-old with a Silver plan from the federal marketplace.
Source: Best Health Insurance for Self-Employed Freelancers
