If a person is a freelancer, gig worker, or independent contractor, they’ll likely need to pay for their own health insurance coverage. But with so many policies, providers, and terms to consider, finding the right coverage is easier said than done. That’s why we’ve put together the top health insurance options for self-employed people.
Federal or State Marketplace
Created by the Affordable Care Act, the Health Insurance Marketplace should be one’s go-to for comprehensive, non-ESI insurance options. Although the program facilitates enrollment via its call centers and in-person help, most people purchase policies through the web portal. All Marketplace plans are considered qualified health plans, which means they must cover health services that the government deems essential.
Medicaid
Medicaid is a need-based health insurance assistance program that offers free coverage for around 74 million Americans, and it can be a great option for workers who qualify. Participation is based on income. In most states, Medicaid is available as a coverage option to people living under 138% of the federal poverty level. Enrollment is open year-round.
Medicare
Medicare is a federally-backed insurance option meant for U.S. adults who are 65 years of age or older and people with select disabilities. Enrolled beneficiaries are usually required to pay monthly premiums based on their tax history and coverage. Like Medicaid, Medicare is a popular option for people looking to get health coverage outside of their employer.
Short-Term Medical Plans
These plans are helpful for people managing employment gaps or transitioning into self-employment. They offer less comprehensive coverage, but the plans are affordable. This is a great option for people who don’t experience too many health-related concerns. Recent changes increased the validity of short-term medical plans from a few months to over a year.
Limited Benefit Plans
These plans also offer pretty basic coverage at an affordable price. Limited benefit plans don’t cover all essential healthcare benefits, which makes them best for adding on to an existing insurance plan, such as a critical illness plan. High-deductible catastrophic health insurance plans also exist, and they cover many essential benefits, but the coverage is still somewhat limited.