HSA for America’s Guide to 2025 Health Plans for Self-employed Entrepreneurs, Small Business Owners, and More. Find the Best Health Insurance for your Small Business.
As a self-employed business owner, you’ve always got your bottom line in mind. That’s why this guide will pay close attention to overall value when exploring the 5 best health insurance plans for small business owners.
Other factors we’ll look at are member benefits, number of plan options, and provider networks.
Disclaimer: Why “The Best” Plan is Different for Everybody
Before we begin, it’s important to remember that no health insurance plan is ever going to be the best or most affordable option for everyone. Choosing “the best plan” is about taking time to understand your financial needs and health goals. The next step is finding a trustworthy, no-cost advisor that can help you sort through your options.
Do I Have to Have Health Insurance if I’m Self-Employed?
Nobody is forced to have health insurance of any kind. As a self-employed individual, you have the freedom to design and implement the health strategy that works best for you, even if that means going without insurance.
And if you’re hiring employees, you don’t have to worry about a requirement to carry group insurance until you have 50 people.
But remember: Choosing to be uninsured is ultimately the more expensive option.
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In This Guide: 5 Health Plans for Entrepreneurs and Small Business Owners
Here are the health plans we’re going to be comparing and reviewing in this guide:
- Cigna
- Humana
- Blue Cross Blue Shield
- United Healthcare
- MPB Health
Cigna Small Business: 8 Different Plan Options | |
|---|---|
| AM Best Rating: | A |
| Number of Providers: | 36,100 |
| Notable Perks / Member Benefits: | Higher number of plan options than other companies on this list While Cigna is not available in all 50 states, it is still becoming one of the most competitive small business health insurance companies operating. Cigna actually offers 8 different group health insurance plans, and they can be tailored to either small employers (1-50 employees) or large employers (50+). |
| Available health plans with Cigna include: |
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Humana Small Business: Unique Plans for Your Company’s Specific Healthcare Needs | |
|---|---|
| AM Best Rating: | A- |
| Number of Providers: | 350,000 |
| Notable Perks / Member Benefits: | Humana’s Simplicity plan is a uniquely structured option where there is no deductible; All medical services are priced with a pre-set copay by incident type. They call this the “no-surprises” plan. Humana boasts a much larger provider network than Cigna (reviewed above). They’ve also earned very high marks from current enrollees for their excellent customer service department. There are 5 different plans to choose from, providing enough flexibility to ensure that most small employers can find the right option. |
| Humana’s plan options include: |
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| All of Humana’s plans are available to businesses of any size, regardless of the number of employees. | |
Blue Cross Blue Shield: Big Resources to Offer Cost-Effective Plans | |
|---|---|
| AM Best Rating: | BBB+ |
| Number of Providers: | 390,000+ |
| Notable Perks / Member Benefits: | Blue Cross Blue Shield, or BCBS for short, is one of the largest independent health insurance companies in the world. BCBS is actually a nationwide collection of 36 independent insurance companies, each offering their own set of plan options. BCBS is available in all 50 states, which is another testament to their size and fiscal security. Their overall network includes more than 90% of the nation’s doctors and hospitals. BCBS plan options vary depending on which state you are in and which specific company you’re working with. If you’re interested in finding out which plans are available in your area, click here to search health insurance plans by state. |
UnitedHealthcare: Massive Provider Network
Businesses with more than 50 employees can choose from the following nation-wide options:
| |
|---|---|
| AM Best Rating: | A |
| Number of Providers: | 1.3 million+ |
| Notable Perks / Member Benefits: | Hands down the largest provider network in the country. Like BCBS, United Healthcare is in all 50 states and is contracted with the vast majority of US doctors, hospitals, and specialists. Group plans for businesses with between 2 and 50 employees will vary by state. |
| UnitedHealthcare plan options: | Choice: Fixed-dollar copayments, multiple coinsurance options, and lower out-of-pocket costs when in-network. Choice Plus: Includes more coverage for out-of-network care. Options PPO: Employees can choose any provider they want without referrals. Members must obtain approvals for non-emergency services. |
| Consumer-driven options: | United offers your employees access to both HSA-qualified plans and Health Reimbursement Accounts (HRAs) |
MPB Health: The Best Health Plan for One-Person Businesses and Small Companies(Less than 10 Employees) | |
|---|---|
| AM Best Rating: | Not Rated |
| Number of Providers: | N/A; Use any provider you need |
| Notable Perks / Member Benefits: | MPB SECURE is designed specifically for one-person businesses, but also can work very well for small businesses. MPB Health is not an insurance company at all. Instead, it’s an alternative healthcare company that gives members access to cost-sharing services for major medical costs. MPB Secure is not only more affordable than traditional insurance, but it’s also designed specifically for one-person businesses. MPB Secure is also paired with a qualified Minimum Essential Coverage (MEC) health insurance plan This program can also work well for a business with a small group of relatively healthy employees. Because this is a health sharing program and not health insurance, there may be waiting periods on pre-existing health issues. Some notable member perks include on-demand telehealth with no time limits, Life Care services for depression, anxiety, and substance abuse, and a very competitive Pharmacy Benefit Plan. |
Compare Pricing on the Best HealthShare Plans Available
Self-Employed Health Insurance FAQ [Frequently Asked Questions]
Q: How Does Health Insurance Work When You Own Your Own Business?
A: Business owners are not required to offer health insurance unless they have more than 50 employees. However, there are big tax benefits to those small companies that do offer a group health plan. If you own your own business, you can purchase a group health plan if you have at least one employee besides yourself. If you are still a 1-person business, you can simply enroll in an individual health plan.
Q: How Much Does Health Insurance Cost for a Self-Employed Small Business?
A: The cost of health insurance for self-employed or small business owners depends on several factors. This includes location, number of employees, plan tier, and more. In addition, small business owners can choose how much to contribute towards employee premiums, and whether or not to include coverage for the employee’s family.
In general, it is possible to get a group health insurance plan for as little as $300 per employee, and a group healthshare plan for about half that.
Q: How do Independent Contractors Get Health Insurance?
A: Independent contractors can sign up for individual or family health insurance plans like anyone else. You don’t need to switch to a group health insurance plan unless you’re hiring employees.
Q: What are the Best Health Insurance Options for 1099 Employees?
A: 1099 employees have a number of viable options available for health coverage. This includes marketplace health insurance, health sharing plans, DPC memberships, short term insurance, and Medicaid (if they qualify).
Q: What is the Self-Employed Health Insurance Deduction?
A: Individuals who are business owners or self-employed can deduct up to 100% of their health insurance premiums. Many business owners leave this deduction on the table because they do not understand how it works.
You can claim the self-employed health insurance deduction if:
- You are a business owner, consultant, independent contractor, freelancer, or gig worker
- Your business has earned a net profit for the year
- You received wages from an S-corporation that you own more than 2% of
You are not eligible for the self-employed health insurance deduction if:
- You are otherwise eligible for coverage through another employer or a spouse
- Your business reported a net loss for the year, or no earnings
How do I Compare Small Business Health Insurance Companies?
The first step in selecting a health plan is seeing what’s available in your area. From there, you can compare insurance companies based on things like plan options, extra member benefits, independent ratings like AM Best, and anything else that is important to you.
If you run into trouble when comparing plans, or you just want somebody to simplify it for you, make an appointment with a Personal Benefits Manager. Your PBM’s advice and assistance won’t cost you a thing, and you’ll come away from the consultation feeling more confident about your healthcare decisions.
Want to do some more research before signing up? Read our comprehensive guide, “Health Insurance for Small Business: The Only Guide You’ll Ever Need”. You can also read our Health Insurance for Small Business Owners – A 2025 comprehensive guide to getting health insurance for small business owners page.
Here are some additional articles on small business health insurance: 3 Things All Business Owners Should Know About Small Business Healthcare | The Best New Healthcare for Small Business: Healthshare Plans for Small Groups | Alternatives to Employer Health Insurance | 6 Best Small Business Health Insurance or Healthshare Plans in Ohio | Best Small Business Health Insurance in Texas | The Best Health Insurance for Small Business in Georgia [2025 Guide]
Read More About Group Health Insurance Options in Your State
Wiley is President of HSA for America. He believes that consumers should have choice and price transparency, so they can make the best healthcare decisions for their needs. Read more about Wiley on his Bio page.
