Wondering if you can get group health insurance? The answer usually depends on whether your business has employees.

While a business owner with no employees usually would not be eligible for group health insurance, you may be surprised to learn that some entrepreneurs have access to group health insurance rates through membership organizations. These organizations include unions, professional groups, and trade associations.

Read further to learn about how certain membership organizations may offer group health coverage and other alternatives available to business owners who do not employ workers.

How do membership organizations relate to group health insurance?

While a small business with at least one qualified full-time equivalent employee can get group health insurance, a self-employed business owner or sole proprietor with no employees usually would not be eligible for a group health plan. Instead, a sole proprietor could enroll in an individual health insurance plan.

Most group health insurance plans are sponsored by employers. An employer offers a group health plan to employees and their eligible dependents. 

However, in some cases, group health insurance coverage may be available to solo business owners, entrepreneurs, or freelancers through membership organizations based on a shared trade, occupation, or industry. Being a member of one or more of these groups may provide access to professional services and to a cost-effective group health plan with more affordable premiums.

Examples of membership organizations that offer group health insurance or supplemental health benefits include:

• AARP Health
• Affiliated Workers Association (AWA)
• Writers Guild of America
• Association for Computing Machinery
• The Freelancers Union

Keep in mind that although many membership organizations have rigorous eligibility guidelines, access to group health insurance at a competitive rate may be a significant advantage and well-worth the effort of meeting the eligibility requirements.  

What other organizations may offer group health insurance?

All sorts of professional associations offer group health insurance as a membership benefit. Whether they serve graphic designers, actors, or booksellers, these organizations strive to help their members advance in their field and to provide valuable resources, such as health insurance, to fill a common need of their members.  

Here are some other types of professional organizations that may offer access to group health insurance or association health insurance plans.

• Industry groups
• Alumni associations
• Regional chambers of commerce

While not all membership organizations offer group health insurance coverage, many provide useful benefits, programs, and select discounts for their members in other areas, such as car insurance, travel, or arts and entertainment. 

But consider the membership cost and your out-of-pocket costs before you decide to join a professional association that offers group health insurance. You have other options you should explore to make sure you are getting the health insurance that best meets your needs.

How to find group health insurance alternatives? 

You can purchase individual health insurance on or off the government exchange. If you need coverage outside the annual enrollment period, and you don’t qualify for a special enrollment period, you may be able to purchase a short-term health insurance policy to provide you coverage while you wait for the annual open enrollment to begin.

Also, you may be interested in an individual coverage health reimbursement arrangement (ICHRA). An ICHRA is a new type of health reimbursement arrangement in which employers of any size can reimburse employees for some or all of the premiums that the employees pay for health insurance that they purchase on their own. To learn more about this option, read our article, ICHRA 101: All About Individual Coverage HRAs

If you are considering expanding your business and hiring help to support the business, you can learn more about the requirements for getting a group health insurance plan here.

Find the right health insurance with eHealth

eHealth can help you find affordable group or individual health insurance plans, including ICHRAs. We make it easy to shop for health coverage with our free, no-obligation health quotes, and online tools.  By using eHealth’s website to compare plans from multiple health insurance companies in your area, you can save time finding plans that fit your needs and budget.

With over 10,000 plans from over 180 companies, we are committed to providing you with the best selection of health plans available online. Trusted by over 5 million customers, we also serve as your advocate and point of communication even after you have purchased your health plan.

Learn more about small business group health insurance in your area by visiting our small business health insurance page. For more information about individual plans, visit our individual & family health insurance page. Or speak with one of our licensed insurance agents today.

This article is for general information and may not be updated after publication. Consult your own tax, accounting, or legal advisor instead of relying on this article as tax, accounting, or legal advice.

Resources 

Exploring coverage options for small businesses: Health coverage for self-employed. Healthcare.gov. Centers for Medicare & Medicaid Services. At https://www.healthcare.gov/small-businesses/learn-more/self-employed/