Being your own boss has countless benefits — freedom, flexibility, and control over your income. But it also comes with one big challenge: finding affordable health insurance. Unlike traditional employees, self-employed people don’t get coverage through an employer, so they must find a plan on their own.
The good news? There are now more cheap health insurance options for the self-employed than ever before. Whether you’re a freelancer, contractor, or small business owner, this guide will help you choose the right plan for your needs and budget.
Why Health Insurance Is Important for the Self-Employed
Health insurance is not just a safety net — it’s essential for your financial stability. Without it, one medical emergency could drain your savings or even put your business at risk.
Here’s why getting insured is crucial:
- Protects your savings from unexpected medical bills
- Provides access to quality healthcare and preventive care
- Covers prescription drugs and emergency services
- Ensures peace of mind so you can focus on running your business
Challenges of Being Self-Employed Without Health Insurance
Many self-employed individuals skip insurance because of high premiums or complicated options. But this can be risky. Here’s what could go wrong:
- High out-of-pocket costs: A single hospital visit can cost thousands of dollars.
- Limited access to care: Without insurance, routine checkups and medications become expensive.
- Tax penalties (in some regions): Some countries still charge penalties for being uninsured.
That’s why finding cheap, reliable health insurance for self-employed individuals should be your top priority.
Best Cheap Health Insurance Options for Self-Employed Individuals
Let’s explore some of the most popular and affordable options available in 2025.
1. Health Insurance Marketplace (Affordable Care Act Plans)
The ACA Marketplace (available at HealthCare.gov) is the most common way to get coverage. You can compare plans, check if you qualify for subsidies, and find low-cost options based on your income.
Benefits:
- Income-based discounts (subsidies)
- Comprehensive coverage including preventive care
- Options for individuals and families
Average Cost:
With subsidies, premiums can be as low as $50 to $150 per month depending on income level.
2. Private Health Insurance Plans
If you don’t qualify for subsidies or need specialized coverage, private insurance companies offer flexible plans. Providers like UnitedHealthcare, Blue Cross Blue Shield, and Cigna offer customizable policies for freelancers and small business owners.
Benefits:
- Wider provider networks
- Custom coverage options
- Can include dental, vision, or maternity care
Average Cost:
$200 – $400 per month depending on your state and coverage.
3. Short-Term Health Insurance Plans
Short-term insurance plans are great for freelancers who need temporary coverage or can’t afford full ACA plans. They’re cheaper but offer limited benefits.
Benefits:
- Low monthly premiums (starting at $80/month)
- Fast approval and flexible terms (1–12 months)
- Good for people between jobs or starting new businesses
Drawbacks:
- Doesn’t cover pre-existing conditions
- Limited benefits (may not include prescriptions or maternity care)
4. Health Sharing Plans
These aren’t traditional insurance plans — instead, members share medical costs among themselves. Organizations like Medi-Share and Liberty HealthShare are popular among self-employed people looking for low monthly payments.
Benefits:
- Very affordable (average $100–$250/month)
- Faith-based or community-driven support
- Can work well for healthy individuals
Drawbacks:
- Not regulated like insurance
- Limited coverage and no guarantees of payment
5. High-Deductible Health Plans (HDHP) with Health Savings Account (HSA)
This is one of the smartest ways for self-employed individuals to save money. You choose a plan with a higher deductible but lower premium, and use an HSA to cover medical expenses tax-free.
Benefits:
- Lower monthly cost
- Tax-free contributions for medical expenses
- Funds roll over year to year
Example:
If you choose a $6,000 deductible plan, your monthly premium might drop to $120–$200/month — and your HSA funds can cover out-of-pocket expenses.
6. Association Health Plans (AHPs)
If you’re part of a trade group or business association, you might qualify for an association health plan. These plans pool members together to get lower group rates.
Benefits:
- Lower premiums through group discounts
- Tailored for specific industries (like tech or real estate professionals)
- Great for small business owners and freelancers
How to Find the Cheapest Self-Employed Health Insurance
Here are some smart steps to help you find affordable coverage:
Step 1: Know Your Budget
Calculate how much you can afford monthly and annually — including deductibles and co-pays.
Step 2: Compare Multiple Providers
Use sites like eHealthInsurance, HealthCare.gov, or Policygenius to compare quotes side by side.
Step 3: Consider Your Health Needs
If you rarely visit the doctor, a high-deductible plan with lower premiums might make sense.
If you have regular prescriptions or health issues, choose a more comprehensive plan.
Step 4: Check for Tax Credits
If your income is below a certain level, you may qualify for government subsidies or tax credits that can dramatically reduce your monthly premium.
Step 5: Reassess Every Year
Health needs and income change. Review your plan annually to ensure you’re getting the best value.
Tax Benefits of Health Insurance for Self-Employed
Here’s something many freelancers forget: you can deduct your health insurance premiums on your taxes.
- Self-employed individuals can deduct 100% of health insurance premiums (including spouse and dependents).
- HSA contributions are tax-deductible and grow tax-free.
This effectively makes your health insurance cheaper than it looks.
Cost Comparison: Average Monthly Premiums (2025 Estimates)
| Type of Plan | Average Monthly Cost | Ideal For |
|---|---|---|
| ACA Marketplace (with subsidy) | $75 – $150 | Low to mid-income freelancers |
| Private Insurance | $200 – $400 | Small business owners |
| Short-Term Plan | $80 – $150 | Temporary or healthy individuals |
| Health Sharing Plan | $100 – $250 | Healthy self-employed workers |
| HDHP + HSA | $120 – $200 | Long-term savers and low-risk individuals |
Best Companies for Cheap Health Insurance for Self-Employed
- Blue Cross Blue Shield – Best nationwide coverage.
- UnitedHealthcare – Strong telehealth and wellness programs.
- Cigna – Flexible plans with dental and vision add-ons.
- Kaiser Permanente – Great for preventive care.
- Next Health Insurance – Best for digital quotes and affordable pricing.
Tips to Lower Your Health Insurance Costs
- Maintain a healthy lifestyle to reduce premiums.
- Bundle insurance (e.g., health + dental) for discounts.
- Increase your deductible to lower monthly payments.
- Use preventive care services covered at no extra cost.
- Shop around every year — don’t stick to the same plan without comparing.
Frequently Asked Questions (FAQs)
1. Can self-employed people get affordable health insurance?
Yes. Self-employed individuals can use ACA Marketplace, private plans, or health sharing programs to find affordable options.
2. What’s the cheapest type of health insurance for self-employed workers?
Short-term and health-sharing plans are the cheapest but come with limited coverage. For balanced protection, try a high-deductible plan with an HSA.
3. Is health insurance tax-deductible for freelancers?
Yes. Premiums and HSA contributions are tax-deductible, lowering your overall taxable income.
4. How can I get coverage if I have a pre-existing condition?
ACA Marketplace plans must cover pre-existing conditions — no insurer can deny you for them.
5. Can I buy health insurance anytime?
Usually, you can only enroll during the Open Enrollment Period — unless you have a qualifying event like starting a new business or losing other coverage.
Conclusion
Being self-employed gives you the freedom to work on your terms — and with the right cheap health insurance plan, you can also protect your health and finances.
Compare quotes, consider tax benefits, and choose a plan that balances affordability and coverage. Remember, health insurance isn’t just an expense — it’s an investment in your business, your future, and your peace of mind.