How Much Does Individual Health Insurance for Self-Employed People Cost?

Individual and Family

How Much Does Individual Health Insurance for Self-Employed People Cost?

Published on January 31, 2019


According to the U.S. Census, about 16 percent of all Americans rely upon individual health insurance plans. Slightly more than half of insured people in the U.S. have group health plans, and about 26 qualify for Medicare and/or Medicaid. Even though group and public health insurance are more common, individual health insurance helps protect the health of the families of millions of self-employed people. Take a moment to explore the typical cost of individual health insurance.

How much will individual health insurance cost?

Naturally, your own individual health insurance premiums will depend upon several factors. For instance, do you just need single coverage, insurance for both you and your spouse, or a family plan for both adults and children? Insurers also consider age and tobacco use, your ZIP code, and the kind of individual health insurance that you choose. You also might balance the premiums versus the benefits of choosing Obamacare or a non-Obamacare alternative for individual health insurance. Whatever kind of plan you decide upon, eHealth has the options for you–so keep reading to figure out price expectations, and see what kind of plan may work for you as a self-employed individual.

Obamacare individual health insurance premiums

This eHealth data for ACA Marketplace individual health insurance premiums can give you a good idea about the average monthly price that other people pay for family and individual health insurance plans:

  • Average premium for single coverage without Obamacare subsidies:  $393
  • Average premium for families without Obamacare subsidies:  $1,021
  • Average plan deductibles: $4,328 for individuals and $8,352 for families

Note that individuals and families may qualify for Obamacare subsidies that can decrease the premium they must pay dramatically.  People with modest incomes might also qualify for cost-sharing subsidies that will further reduce out-of-pocket health costs.
There are some basic facts to know about comparing Obamacare individual health insurance:

  • Typically, your family income needs to fall within 100 and 400 percent of the federal poverty level, and you must lack access to other major medical insurance to get a subsidy.
  • When you apply for Obamacare individual health insurance, you can also find out of one or more family members are entitled to a government program like Medicaid or CHIP.
  • Some families choose different individual health insurance options for various family members, depending upon medical needs and budgets. For example, children may qualify for CHIP or low premiums with Obamacare health insurance, but healthy adults in the family might decide to fill in coverage gaps with such alternatives as short-term health insurance or medical insurance packages.

Cost-saving individual health insurance alternatives for self-employed people

While you won’t get all of the benefits and protections that you would with an ACA-compliant individual health insurance plan, you could consider some alternatives to Obamacare if you need to save money. Typically, people consider these individual health insurance alternatives as temporary solutions that can help fill in a gap in permanent individual health insurance coverage:

  • Short-term health insurance for individuals and families: In most states, you can buy short-term health insurance for up to a 12-month term. You may have the option to renew this kind of coverage for up to three years. About half of the respondents to an eHealth survey said they probably wouldn’t have been unable to afford individual health insurance if they couldn’t buy short-term coverage.
  • Medical packages: You can also combine such coverage as short-term health insurance, dental insurance, prescription discounts, and emergency indemnity policies to give you and your family a variety of health benefits. Learn more about medical insurance packages here.

These alternatives to individual health insurance can protect your pocketbook if you have an accident or unexpected health issues. Unlike Obamacare individual health insurance policies, they won’t cover some health issues like maternity, mental health, or routine care for pre-existing conditions.  They individual health insurance policies can’t exactly replace an ACA-compliant major medical plan, but they can help self-employed people get important protection at a typically lower cost.

How to compare individual health insurance for self-employed people

At eHealth, we’ve helped millions of Americans find individual health insurance that they can afford and truly benefit from. If you enter your ZIP code in the form and answer a few, short questions, we will help you find the perfect individual health insurance for you and your family too. In addition to different kinds of individual health insurance plans, we can also help you find group health insurance and dental plans for yourself and your growing business.

We’ll let you know when we publish anything new.