The guide to health insurance for freelancers (8 options)

More and more people are ditching their 9-5 jobs in favor of freelancing. Today, the Freelancers Union reports that freelancers make up 35% of the total U.S. workforce. With numbers like that, it’s easy to think that freelancers have it made, and that signing high-end contract templates is a breeze.

They get to set their own hours, work for themselves, and focus on their passions. However, there is one final challenge that holds many back from finding their own employment path: health insurance.

Health insurance for freelancers is tricky. When you’re employed through a traditional full-time job, insurance is offered through them and this covers a portion of the cost. When you’re not under any traditional benefits package, you have to figure these things out for yourself, just as you do with your freelance invoices, for example.

Luckily, it’s not impossible to find excellent health insurance options. Let’s look into the many options you, as a freelancer, have today for protecting your health.

1. Join a family member

One of the most common ways freelancers stay covered is to jump on a family member’s plan. If your spouse has a healthcare policy, you can usually add yourself to their coverage either at no cost or with an additional premium.

Another option available for younger freelancers is being added as a dependent on their parent’s insurance plan. Under new healthcare laws, most insurance companies need to offer coverage for children under 26.

Talk to your family members today about possible coverage options. However, don’t be afraid to keep shopping around. Sometimes the cost of adding you to an existing plan is more expensive than purchasing your own insurance plan. In that case, keep reading.

2. COBRA

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a rule passed by Congress in 1986 that might apply to your situation as a freelancer. This act includes a rule that when you leave a company where you had a healthcare policy, this coverage must be extended up to 18 months after you leave.

If you’re planning to make the switch from full-time to freelance work, you might consider COBRA coverage as a way to transition. It buys you more time to find a plan outside of your employer. This coverage is a great option because, generally, employer plans offer more coverage than individual plans, so you can receive excellent care.

3. Affordable Care Act (ACA)

The ACA isn’t just for the unemployed and with existing conditions. Under the ACA, insurance is possible for those who are self-employed as freelancers as well. While the options likely won’t be as flexible or as extensive as a traditional plan through an employer, this will cover your healthcare basics and any emergencies.

You can view the plan options in your area through HealthMarkets today. Just like how you browse this list of Bonsai recommended project management tools for freelancers, you need to browse your options for health insurance via the marketplace.

Make sure you visit the marketplace early to avoid the last-minute rush of enrollment season.

Freelancers union health insurance options

Aside from the ACA, there are now options available specifically for freelancers. Some insurance plans on a national scale are designed with freelancers in mind.

While these were only available in a few states before, they’re now an option across the country. Keep in mind that options are still limited, but it’s still a great resource for seeing what’s available in your area. Finally, the Freelancer’s Union offers an insurance option built around freelancers and their needs.

Bonsai is another platform created with freelancers in mind. Bonsai helps you get paid faster so you can focus on the parts of your business that matter most. Sign up for a free trial today.

Telehealth services and benefits for freelancers

How telehealth improves access to care for freelancers

Telehealth services provide freelancers with convenient access to medical care without the need for in-person visits. This is especially valuable for independent workers who often have irregular schedules or live in areas with limited healthcare providers.

Using telehealth, freelancers can consult with doctors, therapists, or specialists via video calls or phone from their home or workspace.

For example, platforms like Teladoc Health and Amwell offer 24/7 access to licensed healthcare professionals. These services allow freelancers to get diagnoses, prescriptions, and follow-up care quickly. This flexibility helps freelancers avoid lost work hours and costly emergency room visits. Many freelancers union health insurance plans now include telehealth as a covered benefit, reducing out-of-pocket expenses for virtual visits.

To maximize telehealth benefits, freelancers should verify which services their insurance covers and set up accounts with recommended telehealth providers. Scheduling routine check-ins or mental health sessions through telehealth can maintain wellness without disrupting work. Prioritize telehealth for minor illnesses or ongoing care to save time and money.

Cost savings and coverage details in freelancers union health insurance

Telehealth often lowers healthcare costs for freelancers by reducing copays and eliminating travel expenses. Many freelancers union health insurance plans in 2024 include telehealth visits at the same or lower copay compared to in-person visits. For example, some plans offer telehealth appointments for as low as $10 to $30 per session, compared to $50 or more for office visits.

Coverage typically extends to primary care, urgent care, mental health counseling, and sometimes specialist consultations. Freelancers should review their specific plan documents to understand telehealth benefits, including any network restrictions or limits on the number of virtual visits per year. Some plans also waive telehealth copays during public health emergencies or flu seasons.

To reduce overall healthcare spending, freelancers can combine telehealth with health savings accounts (HSAs) or flexible spending accounts (FSAs) if their insurance plan allows. Using these accounts for telehealth copays offers tax advantages, making virtual care even more affordable. Always check the latest 2024 IRS guidelines for eligible expenses.

How to choose the right telehealth services for your freelance business

Selecting telehealth services that fit your freelance lifestyle involves considering factors like availability, specialties, and technology ease. Look for platforms that offer extended hours or weekend access to accommodate varied work schedules. For example, MDLIVE and Doctor on Demand provide mental health and primary care services with flexible appointment times.

Evaluate whether the telehealth provider integrates with your freelancers union health insurance plan to ensure coverage and avoid surprise bills. Additionally, check if the platform supports mobile apps or user-friendly web portals, which can streamline booking and consultations. Some providers also offer multilingual support or services tailored to specific health needs.

Freelancers should also consider privacy and data security when choosing telehealth services. Confirm that the provider complies with HIPAA regulations to protect your medical information. Finally, test a few platforms with initial consultations to find the best fit for your comfort and healthcare needs, then incorporate telehealth into your regular health routine for ongoing benefits.

Supplemental insurance options for freelancers

Why freelancers need supplemental insurance

Freelancers need supplemental insurance because standard health insurance often doesn’t cover all risks associated with self-employment. Unlike traditional employees, freelancers face unique challenges such as income loss from illness, disability, or liability claims. Supplemental insurance helps fill these gaps by providing additional financial protection.

For example, disability insurance can replace lost income if you’re unable to work due to injury or illness. Liability insurance protects you from legal claims related to your freelance work. These coverages are essential in 2024, as the gig economy grows and healthcare costs continue to rise.

To protect your freelance business effectively, assess your specific risks and consider supplemental policies that align with your work type and income stability. This proactive approach reduces financial uncertainty and supports long-term career sustainability.

Types of supplemental insurance freelancers should consider

Freelancers should consider several types of supplemental insurance beyond basic health coverage. Disability insurance is a top priority, as it provides monthly income if you cannot work due to injury or illness. Companies like Guardian and The Standard offer policies tailored for freelancers with flexible premiums starting around $50 per month.

Another important option is professional liability insurance, also known as errors and omissions insurance. This coverage protects against claims of negligence or mistakes in your freelance work. Platforms like Hiscox and Next Insurance provide affordable plans starting at $25 per month, which can be crucial for freelancers in consulting, writing, or design.

Additionally, consider dental and vision insurance if your main health plan does not cover these services. Supplemental dental plans include options from Delta Dental. Vision insurance providers like VSP Vision offer affordable monthly rates and help manage out-of-pocket costs. Evaluate these options annually to ensure your coverage matches your evolving needs.

How to choose and purchase supplemental insurance

Choosing supplemental insurance starts with evaluating your current health coverage and identifying gaps. Use online tools like Policygenius or Freelancers Union’s insurance marketplace to compare plans side-by-side. These platforms provide clear pricing, coverage details, and eligibility criteria for 2024.

When purchasing, consider your freelance income stability and risk tolerance. For example, if your work involves frequent client interactions or physical tasks, liability and disability insurance become more critical. Always read policy terms carefully to understand exclusions and claim processes.

Finally, keep documentation organized and update your coverage annually. Many insurers offer discounts for bundling multiple policies, which can save money. Taking these steps ensures you maintain comprehensive protection without overspending.

5. Local chamber or business group

Many cities offer health insurance for freelancers through group plans available via business organizations or local chambers. These plans can provide substantial savings depending on your location. If you’re a member of a local professional organization, ask if they offer any type of health insurance coverage.

Even if your local professional group doesn’t currently offer coverage, you might be able to find a group of members willing to start the process of getting group coverage together. Through this method, you’ll work independently or through a broker to choose a plan that’s right for your group.

6. Health savings account

Another choice is to open a health savings account (HSA). This tax-protected account is specifically designed for healthcare costs. Using an HSA saves you money on taxes each year while preparing for out-of-pocket health expenses.

Most people pair an HSA with a high-deductible insurance plan. These high-deductible plans are commonly called “emergency” plans since they don’t cover much regular treatment, but they do help if you face a medical emergency. With an HSA and a high-deductible plan, you can save for your health without risking your financial future.

Professional employer organizations (PEO) for freelancers

how PEOs help freelancers access health insurance

Professional employer organizations (PEOs) allow freelancers to access group health insurance plans typically reserved for businesses. By joining a PEO, freelancers become part of a larger employee pool. This often leads to lower premiums and better coverage options. This is especially useful in 2024 as individual health insurance costs continue to rise nationwide.

For example, PEOs like Justworks and Gusto pool independent contractors under their umbrella. This enables access to plans from major insurers such as UnitedHealthcare and Blue Cross Blue Shield. Their collective bargaining power can reduce monthly premiums by 10-25% compared to solo plans on the ACA marketplace.

Freelancers interested in PEOs should evaluate the fees involved, which typically range from 3-12% of payroll or a flat monthly rate. Understanding these costs alongside insurance savings is crucial before enrolling. Start by requesting quotes from multiple PEOs to compare health benefits and administrative services.

steps to join a PEO as a freelancer

Joining a PEO as a freelancer involves several clear steps to ensure you receive the right health insurance coverage. First, identify PEOs that accept independent contractors rather than only traditional employees. Companies like Justworks, TriNet, and Insperity offer freelancer-friendly options in 2024.

Next, gather your business and personal information, including your tax ID or Social Security number, income details, and any current insurance coverage. This information helps the PEO tailor plans to your needs and comply with legal requirements. Then, complete the application process either online or with a PEO representative.

After enrollment, review your health insurance options carefully, paying attention to deductibles, copays, and network providers. Many PEOs also provide additional benefits like retirement plans and workers’ compensation, which can add value. Regularly reassess your plan during open enrollment periods to ensure it still fits your freelance business.

considerations and potential drawbacks of PEO health insurance

While PEOs offer valuable access to group health insurance, freelancers should be aware of potential drawbacks. One key consideration is the cost structure; PEO fees can add up, especially if your freelance income fluctuates. These fees sometimes offset the savings on insurance premiums.

Another factor is the level of control over your benefits. Unlike purchasing insurance independently, PEOs may limit plan customization. You might have fewer choices in providers or coverage options, which can be a disadvantage if you have specific healthcare needs.

Before committing, freelancers should compare PEO offerings with marketplace plans and union-based options like Freelancers Union health insurance. Use tools such as HealthCare.gov and PEO reviews on platforms like G2 to make an informed decision. Always balance cost, coverage, and flexibility to find the best fit for your freelance career.

7. Pay cash

Finally, if you decide insurance isn’t right for you as a freelancer, you still have options to receive less expensive care. This is a good option if you already have an established health savings account, or if you have considerable assets.

Paying cash in full at the time of service usually opens you up to a large discount on care. Ask your provider if there’s a discount available for upfront payment. Just as you look for the best freelance tips to run your business, keep in mind the best money-saving tips when visiting a healthcare professional.

Another option for paying cash is to look for a flat-fee doctor in your area. Many doctors and specialists provide a monthly rate you pay for unlimited visits. This won’t cover emergency hospital care or prescription drugs, but it can reduce doctor visit costs.

8. Small business insurance

Depending on your state, you might be able to get insurance as a business rather than an individual. Of course, this means you need your business to be registered with your state government. You’ll also likely need at least two people working under the same business in order to qualify for health insurance plans.

Forbes recommends self-employed individuals and small businesses establish insurance via a professional employer organization (PEO). This does involve extra steps, but it might be worth the added coverage options. A PEO might also open your business to some new tax credits, and that’s always a benefit.

As we’ve shown, it’s likely more inexpensive to choose coverage as an employer yourself than to search for an individual, private insurance plan. Your state might offer great health insurance options that are more affordable. However, it’s always a good idea to shop around before committing to a plan since rates change every year.

Freelancers union health insurance affordability

It’s true that healthcare is complicated for freelancers, but that’s no excuse to skip coverage altogether. If you do the right research, you can find a healthcare option that works for your income and situation. Don’t wait until you have an emergency to choose coverage. You should also consider disability insurance, which protects your income in case health issues prevent you from working. Also, learn more about your tax and accounting software options to keep track of your expenses. Today, every penny counts, especially when insurance is so expensive.

Use this guide and start your search today. While it’s not as simple as employer-based coverage, you do have options for health insurance as a freelancer. Your health is the most important thing you have. Protect it with the proper insurance plan to make sure you can focus on the parts of your business that are important to you.

Once you’ve mastered your health insurance options, it’s time to make life as a freelancer even simpler with Bonsai. With Bonsai, you can get paid faster and manage your freelance business with ease - sign up for a free Bonsai trial today.