Introduction
You’re your own boss. You choose your clients, set your schedule, and decide which projects to take on.
But health insurance can still seem confusing and costly.
You might hear that “group health insurance is better” or that “business owners get better deals.” This leads to a simple question:
Can a self-employed person in Texas even get group coverage?
For many Texans, the answer is “yes, sometimes.”
It depends on your business setup, if you have W-2 employees, whether you can join a group or association, and if group or individual plans suit you better.
This guide breaks down group health insurance for self-employed Texans. It covers your options, possible costs, tax details, and how a broker can help.
Can Self-Employed People Get Group Health Insurance?
Many self-employed Texans think group coverage is just for big companies. That’s not always the case.
If you’re self-employed and have W-2 employees, you might qualify for a small group health plan with a private insurance company. Sometimes, even a tiny team is enough, but the rules vary by company and can change.
If you don’t have employees, you still have some options:
- Join an association health plan (AHP) through a professional or trade group.
- Use a group-like design, such as an HRA, when you later hire staff.
- Or, stay with a strong private individual plan until a group makes sense.
The key isn’t just being “self-employed.” What matters is whether you qualify as a small employer or can join a bigger group.
A broker can look at your business type, number of employees, and goals. We’ll quickly let you know if group options make sense or if an individual plan is better for you right now.
Can a self-employed person get group health insurance?
Yes.
Self-employed people can get group health insurance if they qualify as a small employer, join an association health plan, or use group-like setups like HRAs.
If you don’t have W-2 employees, a Texas broker can help you find a valid association or other options.
Group vs Individual Health Insurance When You’re Self-Employed
Before you choose group coverage, it’s smart to compare it with a good individual plan.
Individual private coverage
- You buy the policy as an individual or as a family.
- The plan is tied to you, not to a company.
- You can often choose from several private carriers and networks.
- This works well for many solo, self-employed Texans who want flexibility and control.
Group coverage (small group or association)
- The policy is issued to a business or association.
- You enroll as the owner, and employees and dependents may join.
- Premiums can often be paid through your business, sometimes even before taxes are taken out.
- This is best if you have a team or want to offer benefits to attract new hires.
When group coverage can win
- You have 1–5 W-2 employees who need coverage.
- You want to support retention and recruiting with benefits.
- You want structure for pre-tax premium payments.
When individual plans can win
- You are truly solo and do not plan to hire soon.
- You want easy administration and flexible plan changes.
- You mainly want the best private network for you and your family.
A good broker will check both group and individual private options for you, not just one or the other.
Group Health Insurance Options for Self-Employed Texans
If you’re looking into group-style coverage, here are the main options in Texas.
Small Group Health Insurance (With W-2 Employees)
If you have W-2 employees, a small group plan may be an option.
Typical patterns:
- Carriers often want at least two eligible people on the plan.
- The business holds the policy.
- You pick a plan, set the employer contribution, and employees can enroll their families.
- Premiums are often handled through payroll, sometimes on a pre-tax basis.
A small-group plan is a strong choice if you’re building a team and want steady benefits.
Association Health Plans (AHPs) & Trade Groups
An association health plan is a group plan offered by a professional or trade association. If you join the association and meet their rules, you can join their health plan.
For self-employed Texans, AHPs can:
- Create buying power by pooling many small businesses.
- Offer plans tailored to a specific industry.
- Provide stronger networks than you may find independently.
Not every association offers health benefits, and AHP rules can change.
A Texas broker who knows association health plans can explain your options, answer your questions, and guide you to what’s available now.
PEOs & Co-Employment Models
A professional employer organization (PEO) acts as a co-employer for HR and payroll. Your team is still yours, but the PEO takes care of many HR tasks, including benefits.
A PEO can:
- Provide access to large-group-style plan options.
- Provide support with benefits administration and compliance.
- This option makes sense if your business is growing and you want “big company” benefits without having to build your own HR department.
Group-Like Alternatives: ICHRA, QSEHRA & HRAs
Health reimbursement arrangements (HRAs) are group-like tools for small employers.
Common versions:
- QSEHRA: For certain small employers that do not offer a group plan. You set a monthly allowance; employees buy their own coverage and get reimbursed up to that cap.
- ICHRA: Lets you set different allowance levels for different employee classes under IRS rules.
These tools are helpful but can be technical. They affect your benefits and taxes, so it’s best to work with both a benefits expert and a tax professional before setting them up.
What is a small group of one health insurance plan?
A “small group of one” plan is a group policy for a business where only one eligible person, usually the owner, is enrolled.
Not all states or insurance companies allow this, and Texas rules can change. A broker should check if any group-of-one options are available when you’re shopping.
Group Health Insurance for Sole Proprietors, Freelancers & Gig Workers
If you run a one-person business in Texas, you still have options, even if traditional group coverage isn’t available.
For sole proprietors, freelancers, and gig workers:
- Standard small group plans may not be available without W-2 staff.
- You can use strong private individual plans with wide networks.
- In some fields, you may be able to join an association health plan through a trade group.
- When you later add your first W-2 employee, group, or HRA/ICHRA options may open up.
A broker often helps freelancers find a simple path:
- Start with a solid individual private plan today.
- Plan for group or association options as your business grows.
- Check your coverage each year so you don’t get stuck with an outdated plan.
How do I get group health insurance if I am self-employed with no employees?
If you don’t have W-2 employees, your main group options are usually an association health plan or a group plan once you hire staff. A Texas broker can look at your industry and goals to see if an association, another option, or a private individual plan is best for you right now.
Click here to explore association health plans
How Much Does Group Health Insurance Cost for Self-Employed?
There’s no one-size-fits-all price for group health insurance for self-employed Texans.
The cost depends on:
- Ages of covered people.
- ZIP code and region within Texas.
- Plan type (high-deductible vs. rich copay).
- Group size (owner-only vs. owner plus staff).
- How much the employer pays vs. what the employee pays.
High-level patterns:
- Covering only yourself, as the owner, may be cheaper overall but offers less leverage.
- Adding employees increases your total costs, but it can lower the cost per person, especially with tax benefits.
- Association plans and HRAs can sometimes fall between traditional individual and group options, depending on design.
To get real numbers, a broker will first learn about your team. Then gather quotes from several Texas insurance companies, compare them side by side, explain the pros and cons, and help you through the whole decision process.
How much does group health insurance cost for a self-employed person?
Group health insurance costs for self-employed Texans depend on your age, location, group size, and plan design.
Instead of one set price, you’ll see a range of options. A broker can show you side-by-side quotes for group, association, and individual private plans.
Eligibility & Requirements: Do You Qualify for Group Coverage?
Before you apply, make sure you qualify as a small group.
Common requirements include:
- A minimum number of eligible W-2 employees, often at least two people, are on the plan.
- A minimum participation rate (for example, a set percentage of eligible employees must enroll).
- The business must provide proof of activity, including formation papers, tax IDs, and payroll records.
- The employer pays at least a set share of each eligible employee’s premium.
Insurance company rules vary and can change. Some allow a group of one, while others don’t.
A Texas broker keeps up with these rules, answers your questions, and makes sure you’re not figuring this out by yourself.
Handy checklist:
- Business formation docs and EIN.
- Recent payroll reports, if you have staff.
- List of people you want to cover.
- Your target budget and employer contribution level.
How many employees do you need for group health insurance?
Many insurance companies want at least two eligible people to form a small group, but the exact number and rules can change. Some may allow a group of one in special cases. Always ask a broker to check the current Texas rules before you decide if you qualify.
Tax Benefits & Deductions for Self-Employed Group Health Plans
Group and group-like plans can offer tax benefits, but the details depend on your business type and the plan you pick.
High-level points:
- Self-employed health insurance deduction: If you meet IRS rules, you may be able to deduct premiums you pay for yourself, your spouse, and dependents, up to your net self-employment income.
- Pre-tax premiums for employees: With a group plan and the right setup, employees may pay their share of premiums before tax.
- HRAs and ICHRAs: Properly designed, they can let employers reimburse premiums and other medical costs on a tax-advantaged basis.
How your plan is taxed can change what you really pay. Two plans with the same price tag might feel very different once you factor in taxes.
This article is educational only. Before you rely on any tax benefit, talk with a licensed tax professional or accountant who understands your business structure and income.
A health insurance broker can give you rough before-tax and after-tax cost estimates for different private options, so you have helpful numbers to share with your tax advisor.
Are group health insurance premiums tax-deductible for the self-employed?
Group health insurance premiums can sometimes be tax-deductible for self-employed people, either through the self-employed health insurance deduction or as a business expense, depending on your setup.
The exact result depends on your entity type, income, and plan design, so you should confirm the details with a tax professional before making decisions based on deductions.
How to Get Group Health Insurance When You’re Self-Employed: Step-by-Step
Here’s a simple way to go from feeling confused to making a decision.
- Define your status: Are you solo, or do you have W-2 employees now or soon?
- Gather key details: Ages, ZIP codes, business type, and a realistic monthly budget per person.
- Set your priorities: Decide whether you care more about price, rich benefits, or specific doctors and hospitals.
- Talk with a Texas broker: Work with a broker who can shop around with different private carriers, association plans, and HRA/ICHRA options.
- Compare 3–5 options: Compare small-group plans, any association options, and strong individual private plans side by side.
- Check tax impact: Share the options with your tax professional to see how deductions or pre-tax structures may change the net cost.
- Choose and enroll: Once you choose a plan, your broker can guide you through the application and help your employees enroll if needed.
- Review regularly: Review your setup each year or when your team changes to make sure you stay on track with your budget and goals.
How do you get group health insurance when self-employed?
To get group health insurance when you’re self-employed, first check if you qualify as a small employer.
Gather your business and employee details, then have a Texas broker compare small-group, association, and individual private options.
Pick the plan that fits your budget, coverage needs, and future plans.
Do You Even Need Group Coverage? When Individual Plans Are Better
Group coverage isn’t always the best choice, even if you qualify.
Individual private plans may be better when:
- You are truly solo and want simple administration.
- You do not expect to hire W-2 employees soon.
- You mostly want to control your own coverage and keep things flexible.
- You already have affordable coverage through a spouse’s employer plan.
In many cases, the best approach is:
- Start with the best health insurance for self-employed that fits your budget right now.
- Revisit group health insurance for self-employed in Texas once you hire or your income grows.
Always compare both options with an experienced licensed broker, so you’re not stuck with the wrong setup as your business changes.
FAQ’s
1. How do you get group health insurance when you’re self-employed?
You start by defining your status (solo vs small employer), gathering basic business and employee details, and setting a clear budget and priorities.
Then you work with a Texas broker that can shop multiple private carriers, association plans, and HRA/ICHRA options.
Once you see the choices side by side, you select the plan that best fits your coverage needs and growth plans.
2. How many employees do you need for group health insurance?
Many carriers require at least 2 eligible people to form a small group, but the exact number and eligibility rules vary by insurer and may change.
Some carriers may offer a group-of-one option in limited cases. Instead of guessing, have a broker confirm current Texas carrier rules for your specific situation.
3. What is a small group of one health insurance plan?
A small group of one health insurance plan is a group policy issued to a business where only one eligible person, usually the owner, is enrolled.
This structure is not available everywhere and is often subject to strict conditions. Texas availability can change, so a broker needs to check whether any true group-of-one options exist when you shop.
4. How much does group health insurance cost for a self-employed person?
Cost depends on age, ZIP code, number of people covered, and plan design. There is no single “right” number for self-employed Texans.
The simplest way to know what it might cost you is to request quotes for several private group and individual options and compare them side-by-side with a broker’s help.
5. Are group health insurance premiums tax-deductible for the self-employed?
Group health insurance premiums can sometimes be tax-deductible for self-employed people through the self-employed health insurance deduction or as a business expense.
HRAs and ICHRAs can also create tax advantages when they are set up correctly. Because tax rules are complex and change over time, you should confirm any deduction with a licensed tax professional before you rely on it.
6. Is group health insurance cheaper than individual for the self-employed?
Sometimes group coverage is cheaper, sometimes it is not.
Group plans can be attractive when an employer pays part of the premium and uses pre-tax structures, especially for a small team.
Individual private plans can be better for solo owners who want flexibility.
The only reliable way to know which is cheaper for you is to compare real quotes for both paths.
Conclusion: Group Health Insurance for Self-Employed Texans
Group health insurance for self-employed Texans isn’t a simple “yes or no.”
There are several paths: small group plans, association health plans, PEOs, ICHRAs, QSEHRAs, and strong private individual coverage.
Key points:
- Not every self-employed person can or should use a group plan, but there are more options than you might think.
- In Texas, your entity type, staff count, and industry shape what is possible.
- Tax rules and long-term cost can make group-style coverage very attractive once you understand the trade-offs.
You don’t have to figure this out alone. If you’re self-employed in Texas and wondering if group health insurance is right for you, work with a local licensed health insurance broker.
They can review your situation, compare private options side by side, and help you choose coverage that fits your real life and budget.
