The rise of the gig economy and remote work has led to a significant increase in the number of self-employed individuals. While self-employment offers freedom and flexibility, it also means taking on responsibilities typically handled by employers, such as securing health insurance. In 2025, finding the best health insurance for self-employed professional can be a challenge, but with the right knowledge, it’s absolutely manageable.
In this detailed guide, we’ll break down the best health insurance options for the self-employed, provide tips for saving money, and help you navigate the complex insurance landscape with confidence.
Why Health Insurance is Crucial for the Self-Employed
Health insurance is not just a legal or financial requirement—it’s essential for safeguarding your health and financial stability. Without insurance, a medical emergency or ongoing condition could result in tens of thousands of dollars in out-of-pocket expenses.
Having a reliable plan ensures access to preventive services, chronic condition management, mental health support, and protection against unexpected medical costs.
Top Health Insurance Options for the Self-Employed
1. Affordable Care Act (ACA) Marketplace Plans
ACA plans remain one of the best options due to the availability of income-based subsidies and comprehensive coverage.
- Pros: Subsidies lower costs, pre-existing conditions covered, essential benefits included.
- Cons: Without subsidies, premiums can be high.
Best For: Individuals or families with fluctuating or moderate incomes.
2. Private Health Insurance Plans
You can purchase insurance directly from insurance companies outside the ACA marketplace.
- Pros: Wider range of options and customization.
- Cons: No subsidies, so it may be more expensive.
Best For: High-income earners who do not qualify for ACA subsidies.
3. Health Sharing Ministries
These are non-traditional alternatives where members share medical costs.
- Pros: Often cheaper monthly contributions.
- Cons: Not regulated as insurance, limited coverage, may deny pre-existing conditions.
Best For: Healthy individuals looking for low-cost alternatives.
4. COBRA Continuation Coverage
If you recently left a job, COBRA allows you to continue your former employer’s plan for a limited time.
- Pros: Maintains existing coverage.
- Cons: Expensive, as you pay the full premium.
Best For: Temporary stopgap coverage after employment ends.
5. Freelancers Union or Association Health Plans
Professional organizations sometimes offer group rates on health insurance.
- Pros: Group rates can lower costs, tailored plans for freelancers.
- Cons: Limited availability depending on location.
Best For: Those belonging to professional associations.
6. Short-Term Health Insurance
Short-term plans are designed to provide temporary coverage.
- Pros: Affordable, fast enrollment.
- Cons: Limited benefits, not renewable long-term.
Best For: Bridging the gap between other coverage.
Factors to Consider When Choosing a Plan
- Monthly Premium: Your regular cost for maintaining the policy.
- Deductible: The amount you must pay before insurance starts covering expenses.
- Out-of-Pocket Maximum: Your maximum spend in a year, after which insurance pays 100%.
- Network: Ensure your preferred doctors and hospitals are in-network.
- Covered Services: Make sure essential health benefits like maternity care, prescriptions, and mental health are included.
How to Save Money on Health Insurance as a Self-Employed Individual
- Take Advantage of ACA Subsidies: Estimate your annual income accurately to qualify for subsidies.
- Open a Health Savings Account (HSA): Pair it with a high-deductible plan to enjoy tax savings.
- Compare Plans Annually: Prices and coverage can change every year.
- Work with a Licensed Broker: They can help you find the best deal at no additional cost.
- Deduct Your Premiums: Self-employed individuals can deduct 100% of health insurance premiums from their taxable income.
Tax Benefits of Health Insurance for the Self-Employed
As a self-employed taxpayer, you may be eligible to deduct your health insurance premiums, which can reduce your adjusted gross income. This deduction is available whether or not you itemize deductions on your tax return.
You can also deduct qualified medical expenses, including prescriptions, doctor visits, and medical supplies, if they exceed 7.5% of your adjusted gross income.
Best Providers for Self-Employed Health Insurance in 2025
- Blue Cross Blue Shield – Wide coverage, ACA options, and good customer service.
- UnitedHealthcare – Variety of plans, good telehealth services.
- Kaiser Permanente – Excellent preventive care and integrated services.
- Oscar Health – Digital-first insurance with user-friendly platforms.
- Cigna – Broad network and global coverage.
Frequently Asked Questions
Q: Is there a penalty for not having health insurance in 2025?
A: At the federal level, no. However, some states impose their own penalties for being uninsured.
Q: Can I change plans mid-year if my income changes?
A: Yes, qualifying life events, such as income change or moving, can trigger a special enrollment period.
Q: Is dental and vision included in health insurance?
A: Usually not. You’ll need separate plans unless your health insurer offers bundled packages.
Final Thoughts
Being self-employed comes with a unique set of challenges, but securing health insurance doesn’t have to be one of them. By understanding your options and taking advantage of tools like the ACA marketplace, HSAs, and tax deductions, you can find a plan that fits your budget and lifestyle.
Make sure to review your needs annually, stay informed about available options, and seek expert advice when needed. Your health is your most valuable asset—protect it with a plan that supports your goals as a self-employed professional.
