The Self-Employed Guide to Health Insurance and Coverage

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As a self-employed individual, you enjoy a long list of perks and advantages that your salaried counterparts do not. However, there are also some distinct challenges and issues that you must proactively deal with. The cost of medical care is one of them.

Here are several different options for self-employed individuals looking to manage their health coverage and costs:

Traditional Health Insurance

One of the most common options for self-employed individuals is to purchase traditional health insurance plans from private providers or the Health Insurance Marketplace. These plans come in a variety of options, including HMOs, PPOs, and High Deductible Health Plans (HDHPs), and offer a range of benefits and coverage levels.

While traditional health insurance plans can be expensive, they offer the most comprehensive coverage for medical care, including doctor visits, hospital stays, and prescription drugs. However, it’s important to note that these plans can also come with high deductibles and out-of-pocket costs, which can make it difficult to afford healthcare services.

Healthshare Programs

Healthshare programs are becoming an increasingly popular option for self-employed individuals who are looking for more affordable healthcare coverage. These programs rely on shared responsibility, which means that members contribute to a shared pool of funds, which are then used to pay for members’ healthcare expenses. This approach creates a sense of community and accountability amongst members.

Healthshare programs are typically less expensive than traditional health insurance plans. They also offer more flexibility than traditional health insurance plans. Members can choose the types of services and treatments that they want to be covered, and are often not subject to as many restrictions as traditional insurance plans.

Another benefit is that healthshare programs do not typically have network restrictions, which means that members can receive care from any provider they choose, regardless of whether they are in-network or out-of-network. This can be especially beneficial for self-employed individuals who may not have access to a wide network of providers.

But these plans also come with limitations on coverage. For example, they may not cover pre-existing conditions or certain types of medical procedures. Carefully review the terms and conditions of a healthshare program before enrolling to ensure it meets your specific healthcare needs.

Health Savings Accounts (HSAs)

Another option for self-employed individuals looking to manage their healthcare costs is to open a Health Savings Account (HSA). HSAs are tax-advantaged accounts that can be used to pay for qualifying medical expenses, including deductibles, copayments, and prescription drugs.

One of the benefits of HSAs is that the money you contribute is tax-deductible, and any interest earned on the account is tax-free. Plus, any unused funds in your HSA can roll over to the following year, making it a great option for individuals who want to save for future healthcare expenses.

Telemedicine Services

Telemedicine services have become increasingly popular over the last few years, particularly in the wake of the COVID-19 pandemic. These services allow patients to receive medical care remotely, typically through a video consultation with a healthcare provider.

Telemedicine services are often less expensive than traditional medical care, and they offer the convenience of receiving care from the comfort of your own home. But you should know that telemedicine services may not be appropriate for all types of medical conditions, and you should always consult with your healthcare provider to determine the best course of treatment for your specific needs.

Health and Wellness Programs

In addition to traditional medical care, there are also a variety of health and wellness programs that self-employed individuals can take advantage of to manage their healthcare costs. These programs may include wellness coaching, exercise classes, nutritional counseling, and stress management programs.

While these programs may not directly address medical issues, they can help prevent the development of certain conditions and improve overall health and well being. Additionally, many health and wellness programs are less expensive than traditional medical care, making them a great option for self-employed individuals looking to manage their healthcare costs.


At the end of the day, self-employed individuals have options. It’s simply a matter of finding the right option to fit your specific needs, budget, circumstances, and other health-related factors. By doing your due diligence, you can find the right fit for you and your family.

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Larry is an independent business consultant specializing in tech, social media trends, business, and entrepreneurship. Follow him on Twitter and LinkedIn.