Health Insurance for Self-Employed & Small Businesses

Kim Solis | Nov 22, 2023 | minute read

Health InsuranceIn today’s swiftly changing work environment, more individuals are embracing entrepreneurship and self-employment. As people have shifted to online businesses and remote work even more in the wake of the pandemic or left their jobs during the Great Resignation, there’s been an uptick in self-employed individuals and small business owners.

As of February 2022, 11% of the United States labor force is self-employed. For reference, in the last 23 years, self-employment has only neared 11% once in 2004. 

The liberty of being your personal boss comes with its perks: you can work on your own schedule, answer only to clients, and take a greater share of your profits. But it also increases the burden on yourself as the sole proprietor or small business owner. 

For small business owners and self-employed people, choosing the right medical insurance can be a complicated hassle. It can be challenging to locate the right insurance provider among the swaths of agencies out there and find a plan that works for you and your business if you don’t know where to look. Let’s explore what you need to know as a self-employed person or small business owner when it comes to health insurance options. 


Do Self-Employed Individuals and Small Business Owners Need Health Insurance? 

For small business owners, health insurance plans are vital. Employee benefits—like health insurance—help you attract and retain quality employees and ensure your employees remain healthy and happy, while your small business enjoys tax benefits. Some employee benefits like health insurance are tax deductible, allowing you to provide health insurance to employees and write it off to save money. 

Health insurance for self-employed individuals has similar benefits. First and foremost, you’ll be covered for certain medical expenses, ensuring you don’t pay out of pocket and don’t have to worry about uncovered medical expenses. Secondly, you may qualify for savings, like premium tax credits on a self-employed health plan. 


Common Types of Health Insurance Plans 

Some common types of plans for self-employed individuals and small business owners include the following: 

  • Health Maintenance Organization (HMO):  A budget-friendly plan that usually has low deductibles and premiums. 
  • Point of Service (POS):  This plan has higher premiums than an HMO, but allows for out-of-network coverage, unlike an HMO plan. 
  • Exclusive Provider Organization (EPO):  Like an HMO, EPOs only cover in-network care; however, the networks are significantly larger than HMOs. 
  • Preferred Provider Organization (PPO):  Has the highest premiums but allows you to see out-of-network care without a referral from a doctor. 

LCK 11.23 Health Insurance for Self Employed


Quick Tips to Get Started 

We get it—finding the right health insurance can be tricky. Here are some quick tips to help you get started: 

  1. Assess Your Needs: Understand your healthcare requirements before choosing a plan. 
  2. Budget Wisely: Set a budget for premiums and potential out-of-pocket costs. 
  3. Research Plans: Explore different plan types (HMO, POS, EPO, PPO) and compare their pros and cons. 
  4. Use Marketplaces: Check out health insurance marketplaces for easy plan comparisons and potential subsidies. 
  5. Consult a Broker: Consider working with a health insurance broker for expert guidance. 
  6. Know Tax Benefits: Understand the tax implications and potential deductions related to health insurance. 
  7. Consider HSAs: Health Savings Accounts can help you save for medical expenses tax-efficiently. 
  8. Review Regularly: Periodically assess and adjust your coverage to fit changing needs. 
  9. Don't Forget Other Insurance: Consider disability and life insurance to enhance your overall financial security. 

By following these tips, you'll be better prepared to navigate the world of health insurance and make informed choices for yourself and your small business. 


Navigating Individual Health Insurance 

Individuals operating without personnel, or a small team of employees face a unique set of challenges. LCK Insurance Agency acknowledges the need for customized solutions, supplying individual medical health insurance plans tailor-made to meet specific requirements. 

From comprehensive coverage to more budget-friendly alternatives, you and your LCK insurance agent can customize a plan that matches your self-employed or small business health insurance needs and financial constraints. Our deep knowledge of the coverage landscape ensures that our customers get tailor-made recommendations and comprehensive insurance options that don’t break the bank. 

Contact LCK Insurance Agency today to learn more about how we can help you create a health insurance plan, no matter your budget or requirements. 


One Last Tip: Insurance Isn't Just About Premiums 

When it comes to your self-employed venture or small business, don't fixate on the lowest premium. Insurance is more than a price tag; it's a service and valuable advice. 

Not all agents are the same. Some are tied to one insurer, while independent agents like us have access to many. This means customized coverage tailored to your needs. 

Building a strong relationship with your agent is vital. You should feel comfortable asking questions and getting honest answers. 

Your business deserves an experienced agent who understands the insurance landscape and your unique needs. Unsure which insurance to get or which agent might be the best fit for you? We can help you make the right choice for your business. Download our free eBook today to help you with this important decision. 

Free eBook | Stop Bidding Your Insurance

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About The Author

As the Employee Benefit’s Department Manager at Leap | Carpenter | Kemps Insurance Agency, I use my 20 years of insurance expertise and background in Human Resources Management to find the best policies for both business owners and their employees.

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