Some joys of freelancing include autonomy over work, flexible hours and work-from-home lifestyles. However, it also means sacrificing several company perks, such as health insurance.

Navigating health insurance as a freelancer can be daunting. Let this guide walk you through your options and help you make a sound decision.

What Health Insurance Options Do Freelancers Have?

Freelancers have numerous health insurance plans available to them. Selecting the best one requires careful consideration. Here's a breakdown of the most common health care possibilities for freelancers:

Individual Marketplace

The Affordable Care Act (ACA) — also known as Obamacare — is your best option for health insurance as a freelancer. The ACA Marketplace lets you select a plan regardless of whether you're a full-time or part-time employee, freelancer or unemployed.

You can enroll in a marketplace plan during the Open Enrollment period from November 1 to December 15 or during Special Enrollment periods. These periods offer coverage during life-qualifying events, such as job loss, moving, marriage, divorce or childbirth. You must apply for new coverage within 60 days of household changes.

The ACA offers four health insurance tiers — Bronze, Silver, Gold and Platinum — from the lowest to highest premiums. The lower the premium, the higher your deductible.

Deductibles work the same way whether it's health, auto or homeowners insurance. Suppose your car damage amounts to $1,000 with a deductible of $500 — you'd pay $500, and your plan would cover the rest. Likewise, if a hospital bill came to $4,500 and you have a $2,500 deductible, you'd pay the deductible while your insurer pays the outstanding balance.

Short-Term Insurance

Short-term coverage is ideal for freelancers who've had a lapse of coverage as they change jobs, lose their employer-sponsored insurance, missed Open or Special Enrollment or are no longer eligible to be their parents' dependent.

Short-term plans are cost-effective options, kicking in within one to 14 days. They're also easy to cancel if necessary. However, they're not meant to be renewed more than a few times and generally won't cover all preexisting conditions, mental health services or pregnancy.

Medicare and Medicaid

Freelancers 65 or older are eligible for Medicare, paid by the U.S. Treasury. Medicare beneficiaries are responsible for part of their monthly premiums, co-pays, drug coverage, deductibles and co-insurance, while the rest is funded through payroll taxes and Congress-authorized funds.

Medicaid is also funded by the federal government and state programs, assisting individuals from low-income families. There are coverage limits with Medicaid, and eligibility requirements vary by state. Most individuals only pay small co-pays for appointments and medicines.

Consolidated Omnibus Budget Reconciliation Act (COBRA)

If you lost your job or have other reasons for not qualifying for employer-sponsored health insurance, you could continue to receive benefits temporarily under COBRA. However, this health insurance plan isn't a good fit for everyone.

Policyholders must pay the entire premium and whatever was covered by their previous employer, which is likely far more than they're willing to spend. In this case, a short-term plan might be best.

Additional Health Coverage

You can utilize various resources to assist with health care costs. For example, did you know Amazon Prime members are eligible for 80% savings and two-day medication delivery through Amazon Pharmacy? Of course, you can consider additional health care plans like these:

Spousal or Parent's Insurance

If you're married, you can receive coverage through your spouse's employer-sponsored insurance. This option usually comes with higher monthly premiums.

If you're under 26, you can stay on your parent's health insurance, even if you no longer live at home, got married or are no longer their dependent. Once you turn 26, you can move to a Marketplace plan for individual coverage.

Health Care Sharing Ministries

Health care sharing ministries (HCSMs) are also rising for people with the same religious values and beliefs. HCSMs are not insurers, though. They are membership groups in which individuals pay monthly dues — like premiums — to assist everyone in covering medical costs.

Because they don't need to follow the ACA standards, HCSMs might not cover preexisting conditions, birth control or rehabilitation services for substance use.

Health Savings Account

Are you in need of new prescription reading glasses? Perhaps you need assistance covering over-the-counter medications. A health savings account (HSA) helps you save on out-of-pocket medical costs.

Freelancers must meet specific requirements to qualify for HSAs. For instance, they must be enrolled in a high-deductible plan, not be enrolled in Medicare and cannot be someone's dependent.

How Much Does Health Insurance Cost for Freelancers?

Health insurance costs are rising exponentially, making it harder to cover essential care costs. As freelancers, finding a policy best suited to your health care needs is critical, especially to treat preexisting conditions and take medications.

According to the Centers for Medicare and Medicaid Services, 13.5 million people signed up for Marketplace plans in 2022 — a 15% increase from the year prior. On average, consumers paid $604.78 in monthly premiums before tax credits were enacted. With tax credits, most individuals paid $127.03 premiums. However, the tax credit you receive depends on your projected income for the year.

What to Consider in Making Health Coverage Decisions

Regardless of your chosen plan, staying abreast of enrollment deadlines, qualifying tax credits and other savings is essential to help make health care more affordable. When deciding on health coverage, consider:

• Who needs coverage — either you alone or others in your household
• Health care needs, such as preexisting conditions, mental health services and ongoing treatment
• Co-pays and drug coverage for each plan
• Qualifying tax credits for premium discounts

Excellent Health Insurance Options Are Available Everywhere

You can find the right health care plan as a freelancer with research and careful plan comparisons. If you get stuck along the way, remember there are insurance agents and brokers you can work with to offer advice and guide you through the process.