When you’re self-employed, you wear a lot of hats—business owner, marketer, customer support, and even IT help. But one of the most important roles? Choosing your own health insurance.

Without an employer to offer benefits, you’re responsible for finding a self employed health plan that fits your needs and your budget. Whether you're freelancing, consulting, or running a small business, this 2025 guide breaks down how to compare individual health plans and choose one that works for your lifestyle.

Why Self-Employed People Need the Right Health Insurance

When you work for a company, health insurance is often part of the benefits package. But when you're self-employed, the choice—and the cost—falls entirely on your shoulders.

• You’re responsible for choosing your own plan. There’s no HR team or employer to narrow down your options—you’re in charge.
  A single medical emergency can lead to major bills. Without coverage, even a routine hospital visit or outpatient procedure can result in thousands of dollars in out-of-pocket costs.

• You need a plan that fits both your lifestyle and your finances. The wrong health plan can leave you either overpaying each month or under protected when it matters most.

In 2025, over 15 million Americans work for themselves—and most of them purchase individual health insurance to stay protected (U.S. Bureau of Labor Statistics, 2025).  1

What Are Self-Employed Health Plans?

Self-employed health plans are insurance policies you buy on your own—meaning they aren’t tied to an employer. These are also known as individual health plans.

You can find these plans through:

• The federal marketplace at Healthcare.gov

• State-run exchanges

• Private insurance companies

• Licensed insurance brokers

Individual health plans cover everything you'd expect from traditional insurance—like doctor visits, hospital stays, preventive care, prescription drugs, emergency services, and even maternity and mental health support. The big difference? When you're self-employed, you get to decide which plan fits your needs best. You're in charge of choosing the coverage, managing the details, and making sure it works for your life and budget. Individual health plans are freedom and responsibility rolled into one.

How to Choose the Best Individual Health Plan in 2025 (Step-by-Step)

Following a simple, step-by-step process to help you find a health insurance plan that fits your personal needs, budget, and coverage preferences. It’s a guide to make an informed and confident decision when buying insurance on your own.

1. Know Your Health Needs

Start by thinking about your personal health situation and what you need in an individual health insurance plan:

• Do you visit a doctor often?

• Are you on any long-term medications?

• Do you have a chronic condition or special care needs?

• Are you planning to have a baby or schedule a surgery?

The more you know about your health habits, the better you can predict the kind of coverage you'll actually use.

2. Set a Budget

Health insurance has several types of costs, and it’s important to know the difference:

• Premiums: What you pay every month to keep your coverage active.

• Deductibles: What you pay out of pocket before insurance starts covering big costs.

• Copays/Coinsurance: What you pay each time you get care.

• Out-of-pocket maximum: The most you’ll pay in a year before your insurance covers 100%.

If you don’t go to the doctor often, a lower premium/high-deductible plan might make sense. But if you expect regular visits or medications, you might want a higher premium/lower deductible plan to save in the long run.

3. Compare Plan Types

Looking at the different kinds of health insurance plans available and weighing their differences in cost, flexibility, coverage, and provider access to see which one best fits your needs and budget.

Most individual plans fall into a few categories:

• PPO (Preferred Provider Organization): More flexibility—you can see specialists without referrals and go out-of-network.

• HMO (Health Maintenance Organization): Less flexibility - you must stay in-network and get referrals.

• EPO (Exclusive Provider Organization): In-network only, like an HMO, but no referrals needed.

• HDHP (High Deductible Health Plan): Lower monthly costs but higher out-of-pocket expenses; can be paired with a Health Savings Account (HSA).

Take the time to understand the trade-offs of each type and choose the one that fits your health style and budget.

4. Check the Network

Always check which doctors, hospitals, and clinics are in the plan’s network. Going “out of network” usually means you’ll pay more—or all—of the cost.

Also, check if your prescriptions are covered. Each plan has a “formulary” list of approved medications. Make sure your regular meds are on it.

5. Look at Extra Benefits

Many health plans offer extras, especially in 2025. These can include:

• Telehealth visits

• Mental health services

• Vision and dental coverage

• Discounts on fitness or wellness apps

These perks might be especially helpful if you're working from home or managing your own stress and schedule, and can help stretch your plan's value—especially when you’re paying out of pocket.

How to Save Money on Health Insurance

Health insurance doesn’t have to break the bank—especially if you’re eligible for help. 4 out of 5 people who buy plans on HealthCare.gov qualify for subsidies or tax credits that reduce monthly premiums. These savings are based on income and household size.

If you're self-employed, you may also be able to deduct your health insurance premiums from your taxes. That means more savings at tax time.

Another smart option? Pair a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA). You can contribute to your HSA tax-free and use it to pay for eligible medical expenses.

Common Mistakes to Avoid

It’s easy to rush into a decision, but these common errors can cost you:

• Choosing the cheapest plan without checking what’s covered
  A low monthly premium might come with a very high deductible—or not cover the doctors you use.

• Not checking if your doctor is in-network
  Seeing a doctor out-of-network can lead to huge surprise bills.

• Ignoring prescription coverage
  Make sure your medications are covered. Otherwise, you’ll be paying full price.

• Skipping the fine print on deductibles, copays, and limits
  Always read the fine print carefully—it includes key details about costs and coverage. 

If anything is unclear, ask questions or consult a licensed broker to make sure you fully understand your plan.

FAQs About Self-Employed Health Plans

Can I get health insurance if I’m a freelancer or part-time gig worker?
Yes. Anyone who works for themselves—even part-time—can apply for individual health insurance through the marketplace or a private plan.
Do I have to wait for Open Enrollment?
No, there are multiple private insurance carriers you can sign up with yearlong. However, if you sign up through the Marketplace, generally yes. Open Enrollment runs from November to mid-January each year. But you may qualify for a Special Enrollment Period if you lose coverage, move to a new state, get married, or have another life event.
Should I work with a broker or do it myself?
Either works, but a licensed broker can save you time. They can help you compare plans from multiple companies at no extra cost to you.

Final Thoughts

Being self-employed means more freedom—and more responsibility. The good news? Choosing the right health insurance doesn’t have to be hard.

By understanding your health needs, comparing options carefully, and exploring savings opportunities, you can choose a plan that supports your business, budget, and peace of mind.

Still have questions? Talk to a licensed broker today for personalized help.